FT Finance Tools

Auto Loan Calculator

Estimate a car payment from price, down payment, trade-in, sales tax, interest rate and term, with total cost and interest.

🔒 Runs entirely in your browser — nothing is uploaded

Monthly payment

$553.18

Amount financed

$28,240.00

Total interest

$5,950.80

Total cost

$38,190.80

Amount financed = price + sales tax − down payment − trade-in.

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How the car payment is built

Financing a vehicle happens in two steps. First the calculator works out how much you actually borrow: amount financed = price + sales tax − down payment − trade-in. Sales tax is applied to the vehicle price, then your cash down payment and any trade-in credit reduce the balance. Second, that amount is repaid with equal monthly payments using the standard amortization formula M = P × r ÷ (1 − (1 + r)−n), where P is the amount financed, r is the monthly interest rate (APR ÷ 12 ÷ 100) and n is the number of months in the term. At a 0% promotional rate the payment is simply the amount financed divided evenly across the term.

What raises or lowers the payment

Three levers move the monthly number most. A larger down payment or trade-in cuts the amount financed dollar for dollar, lowering both the payment and the interest you pay. A lower APR reduces the interest portion of every payment. A longer term spreads the balance over more months, which shrinks each payment but increases total interest — a 72-month loan almost always costs more overall than a 48-month loan at the same rate. Watch the total interest and total cost figures, not just the monthly payment, when you compare offers, because dealers often quote the lowest monthly number by stretching the term.

Notes and assumptions

This is a planning estimate. It assumes a simple-interest amortizing loan with no fees rolled into the balance and no add-ons such as gap insurance, extended warranties or documentation fees. Tax rules vary by location: some states tax the price after subtracting the trade-in, which lowers the taxable amount — if that applies to you, reduce the price input to match. Everything is calculated locally in your browser with no account, credit pull or live-rate lookup, so confirm the final contract figures with your lender before signing.

How to use

  1. Enter the dealType the vehicle price, your down payment and any trade-in value.
  2. Add tax and financingEnter the sales tax rate, the annual interest rate and the loan term in months.
  3. Compare the totalsReview the amount financed, the monthly payment and total interest over the loan.

Frequently asked questions

What formula is used?
After computing the amount financed, the payment uses the amortization formula M = P × r ÷ (1 − (1 + r)^−n), where r is the monthly rate and n the number of months.
Is sales tax applied to the trade-in?
This calculator applies sales tax to the vehicle price. Some states tax price minus trade-in; if yours does, lower the price accordingly to match.
Are the down payment and trade-in taxed?
No. They reduce the amount you finance after tax is added, so a bigger down payment or trade-in lowers both the loan and total interest.
Does this fetch live auto rates?
No. There are no external APIs or live rates — enter the APR offered by your dealer, bank or credit union.
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