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Turn a sticker price into a real monthly car payment, including sales tax, your down payment and any trade-in allowance.

Vehicle and financing

5 yr

Monthly car payment

$601.31

Financing $30,080 over 5 yr

Sales tax
$2,080
Amount financed
$30,080
Total interest
$5,999
Total cost of the car
$40,079

Price, tax and interest

Financed amount vs interest

  • Amount financed83%
  • Interest17%
Yearly payoff schedule
YearPrincipal paidInterest paidBalance
1$5,163$2,053$24,917
2$5,558$1,658$19,360
3$5,983$1,232$13,376
4$6,441$774$6,935
5$6,935$281$0

How the car payment is built

Sales tax is applied to the vehicle price after deducting the trade-in allowance. The amount financed is then the price plus tax, minus your down payment and trade-in. That balance is amortized over the term at the rate you enter.

Because a car loses value from day one, the term matters more than on a mortgage. On long terms the balance can exceed the car's value for years, which becomes a problem if the vehicle is written off or you want to sell early. A larger down payment is the simplest protection.

Dealer fees, registration and add-on products are excluded — add them to the price field if the dealer is financing them.

Frequently asked questions

Is sales tax applied before or after the trade-in?

This calculator taxes the price minus the trade-in allowance, which matches most US states. A few states tax the full price — check your state's rule if the amount is significant.

Should I take the longer term to lower the payment?

A 72- or 84-month term lowers the payment but keeps you in negative equity for longer, because cars depreciate faster than the balance falls. Compare total interest as well as the payment.

Does 0% financing beat a cash rebate?

Not always. Calculate the payment at 0% on the full price, then at the market rate on the price minus the rebate, and compare the totals.

What is excluded?

Registration, documentation fees, extended warranties, gap insurance and running costs. Add dealer fees to the vehicle price if you want them financed.