Auto Loan Calculator: Monthly Car Payment and Interest

Work out a monthly car loan payment in your own currency, with total interest, down payment, trade-in and fees. Sales tax is optional: leave it at 0 where VAT is already in the price.

Car loan monthly payment: formula, down payment and trade-in

The payment is based on the amount financed: vehicle price + sales tax + fees, minus your down payment and trade-in value. The tool then applies the level-payment loan formula M = P × r / (1 − (1 + r)^−n), where r is the annual rate divided by 12. For 27,735 financed at 5.9% over 60 months, the payment is 534.91 a month.

Calculation steps

  1. Taxable amount = price − trade-in value (never negative).
  2. Sales tax = taxable amount × the rate you enter.
  3. Total cost = price + tax + documentation and registration fees.
  4. Amount financed = total cost − down payment − net trade-in.
  5. Payment = P × r / (1 − (1 + r)^−n); at a 0% rate, P / n.

Worked example (default values)

A 32,000 vehicle, 4,000 down, 3,000 trade-in, 6.5% sales tax, 850 in fees, 5.9% APR over 60 months. Tax applies to 29,000 and comes to 1,885. Total cost: 34,735; amount financed: 27,735. Payment: 534.91, so 32,094.39 repaid including 4,359.39 of interest. Over 84 months the payment drops to 403.84 but interest rises to 6,187.56.

Assumptions and limits

  • The rate is treated as a nominal annual rate, with no credit insurance or separate lender fees.
  • Sales tax follows US practice. In France, Spain or Germany, VAT is already included in the sticker price: leave the rate at 0 and put registration costs in the fees.
  • This calculator does not handle a balance still owed on your old car. For that case, and to compare 36 to 84-month terms side by side, use the site's US auto loan simulator.
  • No month-by-month amortization table is shown: the tool returns the payment, total repaid and an itemized purchase cost.

An indicative estimate that does not replace your lender's loan offer.

Frequently Asked Questions

How do I calculate a car loan payment?

First work out the amount financed (price + tax + fees − down payment − trade-in), then apply M = P × r / (1 − (1 + r)^−n), with r = annual rate / 12 and n the number of months. For 27,735 at 5.9% over 60 months, M = 534.91. At 0% the payment is simply P / n, here 462.25.

Is a 60-month or an 84-month car loan better?

A longer term lowers the payment but raises the cost. On 27,735 at 5.9%, you pay 534.91 a month and 4,359.39 of interest over 60 months, against 403.84 a month and 6,187.56 of interest over 84 months. The extra 24 months cost 1,828.17 more.

Does my trade-in reduce the sales tax?

In this tool, yes: sales tax is charged on the price minus the trade-in value, as in many US states. With a 3,000 trade-in on a 32,000 car, the 6.5% tax applies to 29,000 and comes to 1,885. In Europe VAT is already included in the sticker price, so set the rate to 0.

What should I enter as fees?

Dealer documentation, title and registration fees. They are added to the amount financed but are not subject to sales tax in the tool. With 850 in fees, the total cost of the default example reaches 34,735.

Is this tool really free?

Yes, all tools on Kristools are 100% free and accessible without registration.

Is my data protected?

Yes. All processing is performed directly and securely inside your browser. No personal data is sent to our servers.