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Car Payment Calculator: Understand Your Monthly Car Costs
Buying a car is a major financial decision. Between taxes, fees, interest, trade-ins, and rebates, this car payment calculator estimates your monthly payment and total loan cost so you can compare options confidently before you buy.
1) What the Calculator Does
It estimates your monthly auto loan payment using the vehicle price, loan term, APR, taxes, dealer fees, manufacturer rebates, trade-in value, and down payment. It also shows the total amount financed and total interest over the life of the loan.
2) Inputs
Enter accurate numbers to get the closest estimate.
| Input | Description |
|---|---|
| Price of Car | Agreed purchase price (after negotiation). |
| Sales Tax (%) | Jurisdiction tax rate on the purchase. |
| Annual Interest Rate (APR) | Yearly borrowing cost used to compute monthly interest. |
| Loan Term (months) | How long you’ll repay the loan (e.g., 36–84 months). |
| Trade-In Value | Credit from trading in your current vehicle (reduces amount financed). |
| Dealer Fees | Documentation, prep, and other dealer charges. |
| Manufacturer Rebates | Incentives that lower the effective price. |
| Down Payment | Cash paid upfront to reduce the loan amount. |
3) How It Works (Formula/Calculation Logic)
The financed amount is:
Amount Financed = (Price + Dealer Fees + Taxes) − (Down Payment + Trade-In + Rebates)
Monthly payment uses the standard fixed-payment formula:
M = P * r * (1 + r)^n / ((1 + r)^n − 1)
P= amount financedr= monthly rate = APR / 12n= total number of monthly paymentsM= monthly payment (principal + interest)
Total interest is the sum of all monthly payments minus P.
4) Outputs
| Output | What It Means |
|---|---|
| Total Price + Fees | Vehicle price combined with dealer fees and taxes. |
| Taxes | Sales tax on the purchase (rules vary by jurisdiction). |
| Total Loan Amount (Amount Financed) | What you’re borrowing after down payment, trade-in, and rebates. |
| Monthly Payment | Payment due each month (principal + interest). |
| Total Interest Paid | Total borrowing cost across the full term. |
5) Practical Use Cases
- Affordability check: Match monthly payments to your budget before shopping.
- Term comparison: See how 36 vs. 60 vs. 84 months impacts cost and interest.
- APR shopping: Compare dealer financing vs. bank/credit-union pre-approvals.
- Down payment planning: Test how more cash down lowers payments and interest.
- Trade-in strategy: Model private-sale vs. trade-in values.
6) FAQ
Does the calculator work for used cars?
Yes. Enter the agreed purchase price, relevant taxes/fees, and your loan details. APRs for used cars may differ from new-car rates.
Does the monthly payment include insurance or registration?
No. The calculator focuses on the loan. Insurance, registration, maintenance, and fuel are separate ongoing costs.
Is sales tax applied before or after rebates and trade-ins?
It depends on your jurisdiction. Some areas tax the price after trade-in, others before. Check local rules or model both scenarios.
Is a longer term always better?
Longer terms lower monthly payments but typically increase total interest. Compare terms to find the best balance.
