Car Finance Calculator

A car finance calculator helps you determine the monthly payment for financing a vehicle purchase. This car finance calculator accounts for the vehicle price, down payment, interest rate, loan term, sales tax, trade-in value, and fees to give you an accurate picture of your car loan costs.

Key factors in car financing:

• Down Payment: A larger down payment reduces your loan amount and monthly payment. Aim for 20% or more to avoid being underwater on your loan.
• APR (Annual Percentage Rate): Your interest rate depends on your credit score, loan term, and whether the car is new or used. Better credit = lower rates.
• Loan Term: Shorter terms (36-48 months) mean higher monthly payments but less total interest. Longer terms (60-84 months) lower monthly payments but cost more overall.
• Sales Tax: Most states charge sales tax on vehicle purchases. Some states apply tax to the full price, others allow trade-in deductions.
• Trade-In Value: Trading in your current vehicle can reduce the taxable amount and provide credit toward your down payment.
• Fees: Documentation fees, registration, title transfer, and dealer fees add to the total cost. These are typically financed into the loan.

Car finance tips: Get pre-approved for financing before shopping to know your budget and negotiate from a position of strength. Compare offers from multiple lenders including banks, credit unions, and dealer financing. Use this car finance calculator to understand how different down payments and loan terms affect your monthly payment and total cost. Remember that a longer loan term may leave you owing more than the car is worth (being "upside down"), making it difficult to sell or trade in later.