Finance
Calculate your monthly car loan payment and understand your total financing cost.
Monthly Payment
$627$
Fixed monthly instalment based on your loan details
This calculator estimates your monthly payment and total financing cost. Actual rates and terms may vary by lender and credit score.
An auto loan calculator estimates your monthly car payment based on the vehicle price, down payment, trade-in value, sales tax rate, loan term in months, and annual interest rate. It applies the standard EMI formula to show your fixed monthly instalment, total interest paid over the loan term, and the complete cost of ownership including taxes.
The calculator subtracts your down payment and trade-in value from the vehicle price, adds the calculated sales tax, and determines the final loan amount. It then uses the reducing-balance EMI formula with your interest rate and loan term to compute your monthly payment. The result includes total interest, total cost of the vehicle, and loan statistics to help you budget.
EMI = [P × r × (1 + r)^n] / [(1 + r)^n - 1]; where Loan Amount = Price - Down Payment - Trade-in + Sales TaxP is the loan amount after down payment and trade-in, r is the monthly interest rate (annual rate ÷ 1200), and n is the loan term in months. Sales tax is calculated on the difference between vehicle price and trade-in value.
| Input | Result | Notes |
|---|---|---|
| Price: $35,000 | Down: $5,000 | Trade-in: $0 | Tax: 7% | Term: 60 months | Rate: 6% | Monthly Payment: $615 | Loan: $37,100 | Total Interest: $9,800 | Total Cost: $37,450 | A typical midsize car purchase with moderate down payment and competitive interest rate |
| Price: $28,000 | Down: $7,000 | Trade-in: $3,000 | Tax: 8% | Term: 48 months | Rate: 5.5% | Monthly Payment: $495 | Loan: $20,000 | Total Interest: $3,800 | Total Cost: $30,000 | Lower loan amount due to substantial down payment and trade-in reduces interest significantly |
| Price: $50,000 | Down: $10,000 | Trade-in: $5,000 | Tax: 6.5% | Term: 72 months | Rate: 7% | Monthly Payment: $654 | Loan: $37,925 | Total Interest: $10,963 | Total Cost: $53,925 | Longer 6-year term keeps payment manageable but increases total interest on premium vehicle |
Vehicle price is what the car costs. Loan amount includes sales tax but excludes down payment and trade-in value. If a $35,000 car has 7% tax ($2,450) and you put $5,000 down with no trade-in, you finance $32,450.
Trade-in value is subtracted from the vehicle price before calculating the loan amount. A $3,000 trade-in reduces your financed amount by $3,000, which directly lowers your monthly payment and total interest paid.
Shorter terms (36–48 months) save on total interest but demand higher monthly payments. Longer terms (60–72 months) ease cash flow but cost significantly more in interest. Choose based on your monthly budget and total cost tolerance.
Not usually, but some lenders offer rate-lock options before approval. Once the loan is finalized, your rate is fixed. Use this calculator to test different rates upfront and negotiate the best possible rate.
No—this calculator shows financing cost only. Add insurance premiums, registration fees, and maintenance costs separately to understand your total cost of ownership.
Extra payments reduce the principal faster, cutting total interest and shortening the loan term. Many loans allow penalty-free prepayment; check with your lender. This calculator assumes fixed monthly payments, so recalculate if you plan significant extra payments.