Auto Loan Payment Calculator
Example: Vehicle price: 35000 $ · Down payment: 4000 $ · Trade-in value: 0 $ · Sales tax: 6 % · Loan APR: 7.5 % · Loan term: 60 months
| Monthly payment | $663 |
| Total interest paid | $6,695 |
| Amount financed | $33,100 |
| Total cost of the car | $43,795 |
Worked example
Take a $35,000 car with $4,000 down and 6% sales tax. Tax adds $2,100, so you finance $35,000 + $2,100 - $4,000 = $33,100. At 7.5% APR over 60 months, that works out to a monthly payment of about $663. Over the full term you pay roughly $6,680 in interest, so the car that stickered at $35,000 costs you about $43,780 all in once tax and interest are counted.
Frequently asked questions
Why is the amount financed higher than the price minus my down payment?
Sales tax is usually rolled into the loan, so it is added to the price before your down payment and trade-in are subtracted. That is why the financed amount can be larger than you expect. Enter your state and local combined rate to see the real figure.
Does a longer term really cost more?
Yes. A 72- or 84-month loan lowers the monthly payment but you pay interest for more years, so the total interest and total cost rise. Run the tool at 60 and 72 months to see exactly how much a lower payment costs you overall.
How much should I put down?
A common guideline is at least 20% down on a new car so you are not immediately underwater as it depreciates. A larger down payment shrinks the amount financed and every downstream number, including total interest.
Is the total cost the price I really pay?
This total includes price, sales tax and interest. It does not include ongoing costs like insurance, fuel and maintenance. For the full picture, pair this with a true-cost-of-ownership calculator.