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Car Payment Calculator

A $32,000 car with $4,000 down, 6% sales tax, and a 6.5% APR loan over 60 months runs about $585 a month, financing $29,920 after tax and down payment. Adjust the fields below for your own deal.

Details

Vehicle price ($)

Down payment ($)

Trade-in value ($)

ZIP code (auto-fills below)

Sales tax (%)

Interest rate (% APR)

Term (months)

Results

Monthly payment -

Amount financed -

Total interest -

Total cost -

Estimates only. Confirm exact terms with your lender or dealer.

By Jessica Martinez, Contributing Writer, Business & Finance · Updated 2026-07-02

How is a car payment calculated?

We add sales tax (on price minus trade-in), subtract your down payment and trade-in to get the amount financed, then amortize it over your term to find the monthly payment and total interest. At the defaults above ($32,000 price, $4,000 down, no trade-in, 6% tax, 6.5% APR, 60 months) the financed amount is $29,920 and the payment is about $585 a month. A larger down payment or trade-in lowers both the financed amount and the monthly figure.

Tip: a bigger down payment cuts both your monthly payment and total interest.

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Good to know

FAQs

How is a car payment calculated?

From the financed amount (price + tax − down − trade-in) amortized over the loan term at your APR.

Does trade-in lower sales tax?

In many states yes - tax applies to price minus trade-in. This tool assumes that.

What loan term is best?

Shorter terms cost less interest; avoid stretching past 60-72 months.

Should I put money down?

Yes - even 10-20% down lowers payments and reduces being underwater.

Are taxes exact?

Tax and dealer fees vary, so treat this as a close estimate.