Calculate your monthly car loan payment including tax and trade-in
Estimated Monthly Payment
$0.00
Total Loan Amount$0
Total Interest Paid$0
Total Cost (Tax Incl.)$0
Understanding Your Car Loan Calculation
Buying a car is one of the most significant financial decisions you'll make. Our car loan calculator helps you break down the monthly costs so you can shop with confidence. To get the most accurate result, you need to consider more than just the sticker price.
Key Factors in Your Monthly Payment
Vehicle Price: The negotiated price of the car before taxes and fees.
Down Payment: The cash you pay upfront. A higher down payment reduces your loan principal and interest costs.
Trade-in Value: The amount a dealer gives you for your current vehicle, which acts like a down payment.
Sales Tax: Most states charge sales tax on the purchase. Our calculator applies this to the net price (Price minus Trade-in).
APR (Annual Percentage Rate): The interest rate charged on the loan. This is determined by your credit score and current market trends.
Loan Term: The duration of the loan. Common terms are 36, 48, 60, or 72 months.
Realistic Example:
If you buy a car for $25,000 with a $3,000 down payment and a $2,000 trade-in, your taxable amount is $23,000. At a 7% sales tax ($1,610) and a 60-month loan at 5% APR, your monthly payment would be approximately $407.81.
How to Lower Your Monthly Payment
If the calculated payment is too high for your budget, consider these strategies:
Extend the Term: Moving from a 48-month to a 60-month loan lowers the monthly payment but increases the total interest you pay over time.
Increase Down Payment: Every $1,000 you put down roughly reduces your monthly payment by $15 to $20.
Improve Your Credit Score: A better credit score can qualify you for lower interest rates, saving thousands over the life of the loan.
function calculateCarLoan() {
var price = parseFloat(document.getElementById('carPrice').value);
var down = parseFloat(document.getElementById('downPayment').value) || 0;
var trade = parseFloat(document.getElementById('tradeIn').value) || 0;
var taxRate = parseFloat(document.getElementById('salesTax').value) || 0;
var apr = parseFloat(document.getElementById('interestRate').value) || 0;
var months = parseInt(document.getElementById('loanTerm').value) || 0;
if (!price || price <= 0 || !months || months <= 0) {
alert("Please enter a valid car price and loan term.");
return;
}
// Calculation Logic
var netPrice = price – trade;
var taxAmount = netPrice * (taxRate / 100);
var loanAmount = price – down – trade + taxAmount;
if (loanAmount <= 0) {
document.getElementById('monthlyPaymentDisplay').innerText = "$0.00";
document.getElementById('totalLoanAmount').innerText = "$0.00";
document.getElementById('totalInterest').innerText = "$0.00";
document.getElementById('totalCost').innerText = "$0.00";
document.getElementById('resultArea').style.display = "block";
return;
}
var monthlyPayment = 0;
var totalInterestPaid = 0;
if (apr === 0) {
monthlyPayment = loanAmount / months;
} else {
var monthlyRate = (apr / 100) / 12;
var x = Math.pow(1 + monthlyRate, months);
monthlyPayment = (loanAmount * x * monthlyRate) / (x – 1);
}
totalInterestPaid = (monthlyPayment * months) – loanAmount;
var totalCostOfOwnership = price + taxAmount + totalInterestPaid;
// Display Results
document.getElementById('monthlyPaymentDisplay').innerText = "$" + monthlyPayment.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('totalLoanAmount').innerText = "$" + loanAmount.toLocaleString(undefined, {minimumFractionDigits: 0, maximumFractionDigits: 0});
document.getElementById('totalInterest').innerText = "$" + totalInterestPaid.toLocaleString(undefined, {minimumFractionDigits: 0, maximumFractionDigits: 0});
document.getElementById('totalCost').innerText = "$" + totalCostOfOwnership.toLocaleString(undefined, {minimumFractionDigits: 0, maximumFractionDigits: 0});
document.getElementById('resultArea').style.display = "block";
}