Auto Loan & Vehicle Payment Calculator
Accurately estimate your monthly vehicle financing payment. Calculates state sales tax, dealer fees, trade-in credit adjustments, and total interest accrued over the term.
EMI = (P - Trade - Down + Tax) × Annuity(r,n)
Vehicle & Financing Parameters
help Frequently Asked Questions
How is a monthly car loan payment calculated?
Car payments are calculated using an amortization formula based on the net vehicle purchase price (price plus sales tax and fees, minus trade-in value and down payment), the loan term (in months), and the annual percentage rate (APR).
What is the 20/4/10 rule for buying a car?
Financial advisors recommend putting down at least 20%, financing the vehicle for no more than 4 years (48 months), and keeping total monthly transportation costs (payment, insurance, gas) under 10% of your gross income.
Is a longer car loan term (72 or 84 months) a good idea?
While 72-month or 84-month terms lower your monthly bill, they significantly increase total interest costs and leave you at high risk of being "underwater" (owing more than the car is worth as it depreciates).
Does a trade-in reduce the sales tax on a new car?
In most US states, trade-in credit reduces the taxable sales price. For instance, if you buy a $30,000 vehicle and trade in a car worth $10,000, you only pay sales tax on the $20,000 difference.