Car Loan Interest and Payoff Calculator
Calculate your car payment including sales tax and fees. See total interest and how extra payments shorten the loan.
Car loans are often stretched to 72 or 84 months to make the payment look small. The interest cost is anything but small.
This calculator builds the amount financed from the price, tax and fees. It then shows the payment and the total you will pay.
How it works
Sales tax is applied to the price less any trade in, which is how most states work. Fees are added, and your cash down is subtracted.
The loan then amortizes over the term. Extra payments go to principal and cut the interest.
The formula
Tax = (Price - Trade in) x sales tax rate.
Tips
- Keep the term at 60 months or less. Long loans leave you owing more than the car is worth.
- Get a rate quote from your bank or credit union before visiting the dealer.
Frequently asked questions
Is sales tax charged on the trade in?
In most states no, the trade in value is deducted before tax. A few states tax the full price.
What is a good car loan rate?
It depends on your credit and the market. Compare at least three offers.
This is not financial advice. Nothing on this site is investment, tax, legal or financial advice of any kind.
The calculators give simplified estimates from the numbers you enter. They ignore taxes, fees, rate changes and real market returns, and they can be wrong.
Do not make financial decisions based on these results. Speak to a licensed financial adviser, accountant or lender before acting, and read the full disclaimer.