Beyond the sticker price
A car loan is shaped by the price, tax, your down payment, any trade-in value, the APR and the term. This tool combines them so you see the monthly payment and the full cost of ownership.
How it works
The loan amount equals price x (1 + sales tax) - down payment - trade-in value. The monthly payment then uses the standard amortisation formula over your chosen months.
Example
A $32,000 car with 6% sales tax and $4,000 down needs a loan of about $29,920. At 7% APR over 60 months the payment is about $592 and total interest is roughly $5,630. Including the down payment, the car costs about $39,550 overall.
Ways to pay less
Put down more, shop APRs at banks and credit unions before visiting a dealer, avoid very long terms, and decline add-ons you do not need. Stretching to 72 or 84 months lowers the payment but costs much more interest.
Watch for
A long loan can leave you owing more than the car is worth. Check fees, taxes and rules in your own state or country.
Frequently asked questions
Is sales tax included?
Yes, enter your local rate. Set it to zero to ignore it.
Should I get pre-approved?
Many buyers do, because a pre-approval gives you a rate to compare with the dealer's.
What term is best?
The shortest you can comfortably afford. Longer terms cost more.