Car Loan Calculator

Enter the vehicle price you are considering, then subtract your down payment and any trade-in value you have. Set your state's sales tax rate to see the true financed amount. Adjust the interest rate and loan term to match offers from your lender or dealership.

The calculator instantly shows your monthly payment, total interest, and full cost. If you plan to make extra payments, use that slider to see how much you can save. The amortization table shows every single payment broken down into principal and interest, and you can export it to CSV for your records.

Use the comparison tool to evaluate different financing scenarios — such as a shorter term with a higher payment versus a longer term with more total interest. Share your calculation with a partner or financial advisor using the shareable link.

Car loan payments use the same EMI formula as standard installment loans, but the principal is determined after accounting for your down payment, trade-in value, and sales tax. The effective loan amount is:

Loan Amount = Vehicle Price - Down Payment - Trade-In + Sales Tax

Sales tax is typically calculated on the taxable amount, which is the vehicle price minus your trade-in value. This varies by state — some states tax the full purchase price, while most allow the trade-in deduction.

Once the effective loan amount is determined, the monthly payment is computed using the standard EMI formula: EMI = P × r(1+r)ⁿ / ((1+r)ⁿ - 1). Each payment covers both interest and principal, with interest weighted more heavily in early payments and principal increasing over time.

Extra payments reduce the principal directly, lowering future interest charges and shortening the payoff timeline. Our calculator recomputes the amortization schedule month-by-month to reflect these savings accurately.

1. Get pre-approved before going to the dealer. Having a pre-approved offer from your bank or credit union gives you negotiating leverage and protects you from inflated dealer financing rates. You can always let the dealer try to beat your pre-approved rate.

2. Keep your loan term to 48 months or less.While 72 and 84-month loans seem attractive due to lower monthly payments, you end up paying significantly more in total interest and risk negative equity if the car's value drops below your loan balance.

3. Negotiate the total price, not the monthly payment. Dealers often focus on monthly payment amounts, which can obscure a higher total cost through extended terms. Negotiate the vehicle price, interest rate, and trade-in value separately.

4. Put at least 20% down. A substantial down payment reduces your financed amount, lowers monthly payments, and protects against depreciation leaving you upside down on the loan.

5. Check your credit score before applying. Even a small improvement in your credit score can qualify you for a lower rate bracket, saving hundreds or thousands over the life of the loan.