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Simple Calculators

Car Payment Calculator

Estimate your monthly auto loan payment with down payment, trade-in, sales tax, and fees

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Down payment, trade-in, sales tax and other fees (doc, registration) are optional.

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Quick summary

A car payment calculator estimates your monthly auto loan payment based on vehicle price, down payment, trade-in value, loan term, interest rate, and local sales tax. It helps you compare loan lengths and understand the full cost of ownership.

Reviewed by Simple Calculators TeamLast reviewed

For planning only — not financial or tax advice. Results are estimates based on your inputs and the stated assumptions. Confirm important decisions with a qualified professional.

How to use this calculator

  1. Enter the inputs requested by the calculator.
  2. Choose the units or options that match your situation and review the assumptions.
  3. Run or update the calculation to see the result.
  4. Review the result, breakdown, and formulas shown on the page.
  5. Check the inputs, units, dates, and limitations before saving or sharing the result.

Car Loan Formulas & Examples

Monthly Car Payment (EMI)

M=P×r(1+r)n(1+r)n−1M = P \times \frac{r(1+r)^n}{(1+r)^n - 1}
P
Amount financed (vehicle price + tax + fees − down payment − trade-in)
r
Monthly interest rate (annual rate ÷ 12)
n
Loan term in months

Worked example

Calculate payment on a $25,000 loan at 7% APR for 60 months

Given
P = $25,000
r = 0.005833 (7% ÷ 12)
n = 60 months
Calculation
M=25000×0.005833(1.005833)60(1.005833)60−1M = 25000 \times \frac{0.005833(1.005833)^{60}}{(1.005833)^{60} - 1}
Result
M = $495.03/month

Amount Financed

Financed=(Price+Tax+Fees)−Down−Trade-in\text{Financed} = (\text{Price} + \text{Tax} + \text{Fees}) - \text{Down} - \text{Trade-in}
Price
Vehicle selling price
Tax
Sales tax amount
Down
Down payment amount
Trade-in
Trade-in vehicle value

Worked example

$30,000 vehicle, $2,400 tax, $3,000 down, $5,000 trade-in

Given
Price = $30,000
Tax = $2,400
Down = $3,000
Trade-in = $5,000
Calculation
Financed=(30000+2400)−3000−5000\text{Financed} = (30000 + 2400) - 3000 - 5000
Result
Financed = $24,400

Frequently asked questions

How is my monthly car payment calculated?

It uses the standard loan amortization formula. The amount financed is the vehicle price plus taxes and fees, minus your down payment and trade-in value. That principal is then spread over the loan term with interest.

Should I choose a longer or shorter loan term?

Shorter terms (36–48 months) mean higher monthly payments but less total interest paid. Longer terms (72–84 months) lower your monthly payment but significantly increase total interest and create a risk of being "underwater" on the loan early on.

Does a larger down payment help?

Yes. A larger down payment reduces the amount financed, which lowers your monthly payment, reduces total interest, and reduces the risk of negative equity in the vehicle.

Is sales tax included in the loan?

In most US states, sales tax is added to the financed amount unless you pay it upfront. This calculator adds sales tax to the vehicle price before calculating the amount financed.

Key terms

APR
Annual Percentage Rate — the yearly cost of borrowing, expressed as a percentage of the loan amount.
Trade-In
The value of your current vehicle that is applied toward the purchase price of a new one.
Amount Financed
The actual loan principal — vehicle price plus fees and tax, minus down payment and trade-in.
Amortization
The process of repaying a loan through scheduled payments that cover both principal and interest.

Methodology, sources & limitations

This page shows the formula, assumptions, and limitations used for this estimate. Rates, thresholds, and other time-sensitive inputs can change, so verify them against the relevant official source before relying on a result.

For our review approach and the primary sources we consult, see the methodology and source policy. If you spot an outdated figure or formula, please contact us with a correction.