Car Loan Calculator
Find out what a car really costs each month once tax, fees, your deposit and your trade-in are all taken into account — and what the finance adds on top of the sticker price.
Fill in the fields to see your result.
Year-by-year breakdown
How the balance falls over the life of the loan, and how much of each year goes on interest.
Why a car costs more than the price on the windscreen
Car finance is the one place where the advertised number and the number you actually pay drift furthest apart. Four things sit between them:
- Sales tax, charged on the purchase and usually rolled into the loan.
- Fees — registration, documentation, dealer admin.
- Interest, which on a five-year loan is rarely small.
- Negative equity, if you still owe money on the car you're trading in.
This calculator adds all four, so the monthly figure you see is the one that will actually leave your account.
How the amount financed is worked out
A worked example
A 32,000 car, 10% down, trading in a car worth 6,000 that still has 2,000 owing on it, 6.5% sales tax charged after the trade-in, 500 in fees, at 7.9% APR over 60 months:
- Taxable amount: 32,000 − 6,000 = 26,000, so sales tax is 1,690
- Down payment: 3,200
- Amount financed: 32,000 + 1,690 + 500 − 3,200 − 6,000 + 2,000 = 26,990
- Monthly payment: about 546
- Total interest: about 5,768
- Total cost of the car: roughly 39,958
That's nearly 25% more than the sticker price — and the trade-in you handed over isn't even counted in that figure.
The trade-in tax trick worth knowing
In many places — most US states, for example — sales tax is charged only on the price after your trade-in is deducted. In the example above that saves 390 in tax compared with being taxed on the full 32,000. A handful of states tax the full price regardless, so the toggle above lets you model both. If you're not sure which applies, ask the dealer to show you the tax line on the paperwork before you sign.
Long loans are where people get hurt
Dealers can make almost any car look affordable by stretching the term. Six- and seven-year car loans are now common, and they cause a specific problem: cars lose value faster than a long loan pays down, so for years you owe more than the car is worth. That's negative equity, and it's why the "still owed on your trade-in" box above exists — it's the trap closing on the next purchase.
| Term | Monthly payment | Total interest |
|---|---|---|
| 36 months | Highest | Lowest |
| 60 months | Comfortable | Roughly double the 36-month figure |
| 84 months | Lowest | Highest — and years spent in negative equity |
Try the same car at 36, 60 and 84 months in the calculator above and compare the "total cost of the car" line. The monthly difference is small; the total difference is not.
Four ways to pay less
- Get financing approved before you walk in. A rate from your own bank or credit union is a number the dealer has to beat, rather than one they get to set.
- Negotiate the price, not the monthly payment. If you negotiate monthly, the term simply gets longer and you pay more overall.
- Put more down. Every unit of deposit removes a unit of borrowing and all the interest attached to it.
- Take the shortest term you can genuinely afford, then overpay when you can.
Frequently asked questions
Does the calculator include sales tax and fees?
Yes — both, and it adds them to the amount financed the way a dealer normally would. Enter your local sales tax rate and whatever registration or documentation fees you've been quoted. If tax is already included in the advertised price where you live, just set the tax rate to 0.
What if I still owe money on my trade-in?
Put the trade-in's value in one box and the outstanding balance in the other. The shortfall — negative equity — gets rolled into the new loan, which is exactly what a dealer will do. It's worth seeing that number clearly: it can add a surprising amount to your monthly payment.
Is the APR the same as the interest rate?
Not quite. The interest rate is the cost of the money; the APR also includes compulsory finance charges, so it's slightly higher and it's the fairer figure for comparing offers. Use the APR here if you have it.
Should I take dealer finance or a bank loan?
Compare the total cost rather than the monthly payment. Dealer finance is sometimes genuinely cheaper — a manufacturer 0% or subsidised-rate deal can beat any bank — but it's often bundled with a higher purchase price. Getting a quote from your own bank or credit union first gives you a number to compare against, and costs nothing.
Why is a 7-year car loan a bad idea?
Because the car loses value faster than the loan pays down. For several years you'd owe more than the car is worth, so you can't sell it without finding cash, and if it's written off the insurance payout may not clear the loan. You also pay substantially more interest. Run 84 months against 60 in the calculator and look at the total cost line.
Are my figures stored anywhere?
No. Everything is calculated in your own browser. Nothing you type is uploaded, saved or shared, and there's no sign-up.
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Please note: CalcuLane gives estimates for general information only and is not financial advice. Lenders round differently, and fees, insurance and payment-date rules can change what you actually pay. Always confirm figures with your lender before committing to a loan.