How it works
The calculator adds sales tax to the vehicle price, subtracts your down payment and trade-in, and finances the rest at the interest rate and term you choose. It then shows the monthly payment, the total interest and the total cost of the car.
Example
A $35,000 car with 7% sales tax ($2,450) and $5,000 down leaves $32,450 to finance. At 7% for 60 months the payment is about $643 per month and the total interest is about $6,100.
How to get a better car loan
- Get pre-approved by a bank or credit union before going to the dealer, so you can compare offers.
- Keep the term short. 72- and 84-month loans lower the payment but raise the total interest, and you may owe more than the car is worth.
- Negotiate the price first, then talk about financing.
- A larger down payment reduces both the payment and the interest.
Frequently asked questions
What is a good interest rate for a car loan?
It depends mostly on your credit score and on whether the car is new or used. Borrowers with excellent credit get the lowest rates; used cars and lower scores usually mean higher rates. Always compare several lenders.
Should I include sales tax in the loan?
Many buyers roll the tax into the loan, which is what this calculator does. Paying the tax upfront reduces the amount financed and the interest.
How long should a car loan be?
Many experts suggest 60 months or less. Longer loans lower the monthly payment but cost more in interest.
Results are estimates for information only and are not financial, legal or medical advice. Rates, taxes and fees vary — confirm with a professional or your lender.