Car Loan Calculator: Monthly Payment and Total Cost
A $35,000 car with $5,000 down and 7% sales tax means financing $32,450. At 6.5% APR over 60 months that's $634.92 a month, with $5,645.29 in total interest.
Loan term (months)
Monthly payment
$634.92
Amount financed
$32,450.00
Total interest
$5,645.29
Total cost of the car
$43,095.29
Registration, insurance and dealer add-ons aren't included unless you add them as fees.
Show the math
- 1
Sales tax
($35,000.00) × 7% = $2,450.00
= $2,450.00
Read the steps as text
- Sales tax. ($35,000.00) × 7% = $2,450.00
- Amount financed. $35,000.00 + $2,450.00 tax − $5,000.00 down = $32,450.00
- Monthly payment. $32,450.00 × 0.005417 ÷ (1 − 1.005417^−60) = $634.92 Using the monthly rate, 6.5% ÷ 12 = 0.5417%, over 60 payments.
- Total interest and total cost. $634.92 × 60 − $32,450.00 = $5,645.29 interest · total cost $43,095.29 Total cost includes the price, tax, fees and all interest, including what you paid up front.
What goes into the amount financed
The amount you borrow is the vehicle price plus sales tax and any fees, minus your down payment and trade-in. In most US states, sales tax is charged only on the price after subtracting a trade-in, which makes trading in worth more than its face value; a few states tax the full price.
That amount is then spread over the loan term using the standard fixed-payment formula: payment = amount × r ÷ (1 − (1 + r)^−n), where r is the APR divided by 12 and n is the number of months.
Longer terms cost more
Stretching a loan lowers the monthly payment but raises the total interest. The same $32,450 at 6.5% is $634.92 a month over 60 months, or $545.48 over 72 months, but the interest rises from $5,645 to $6,825.
Long loans also raise the risk of owing more than the car is worth, since cars lose value quickly in the first few years. A larger down payment, a shorter term or a lower rate (from a credit union, for example) all reduce the total cost.
Frequently asked questions
- How is a car payment calculated?
- Using the amortization formula: payment = P × r ÷ (1 − (1 + r)^−n), where P is the amount financed, r the monthly rate (APR ÷ 12) and n the number of months.
- Should I put more money down?
- A larger down payment reduces both the monthly payment and the total interest, and lowers the chance of owing more than the car is worth.
- Is sales tax included in the loan?
- Usually, yes: it's added to the amount financed unless you pay it up front. Enter your state and local rate above.
- What about 0% APR deals?
- At 0% the payment is simply the amount financed divided by the number of months. Check whether taking the 0% offer means giving up a cash rebate that might save more.