Auto loan calculator: monthly car payment with trade-in, amount owed, sales tax and fees, total interest, a payment schedule, or the price a budget buys.
Financing $28,230.00 at 7% for 60 months costs $558.99 a month, with the last payment in November 2031. Interest adds $5,309.27, so the car costs $43,539.27 in all, including $2,030.00 of sales tax and $1,200.00 of fees.
The trade-in allowance is deducted before tax, as in Texas; California taxes the full price.
Amount financed
L=35,000−4,000−6,000+2,030+1,200=28,230
Price, less the down payment, less the trade-in value, plus tax and fees carried in the loan.
Monthly payment
M=(1+r)60−1Lr(1+r)60=558.99
r = 7 ÷ 1,200 = 0.00583333 a month. Shown rounded to cents; the schedule uses the unrounded payment and the last payment clears any sub-cent residual.
Total interest
∑payments−L=33,539.27−28,230=5,309.27
About the auto loan calculator
The payment is worked out from the amount financed: the vehicle price minus the down payment, trade-in value and any rebate, plus whatever is still owed on the trade-in, plus sales tax and fees when they go into the loan. The monthly payment is L × r × (1 + r)^n ÷ ((1 + r)^n − 1), where L is the amount financed, r the APR ÷ 12 and n the number of months.
With the defaults, a 35,000 car with 4,000 down and a 6,000 trade-in, 7% sales tax on the 29,000 difference (2,030) and 1,200 of fees are rolled in, so 28,230 is financed. At 7% APR for 60 months the payment is 558.99 and interest totals 5,309.27. Paying the tax and fees upfront cuts the payment to 495.03 and saves 607.47 of interest.
Sales tax rules differ by state: whether a trade-in or rebate lowers the taxed price, and whether dealer fees are taxed. The schedule assumes a fixed rate and equal monthly payments, with no add-ons such as GAP cover or a service contract.
How to calculate a car loan payment (EMI)
The monthly payment, or EMI, is L × r × (1 + r)^n ÷ ((1 + r)^n − 1), where L is the amount financed, r the APR ÷ 1,200 and n the number of months. Financing 28,230 at 7% APR for 60 months costs 558.99 a month and 5,309.27 of interest. The formula applies to any fixed-rate car loan.
Work out the amount financed first
The payment depends on the amount financed, not the sticker price:
Amount financed = price − down payment − trade-in value + amount still owed on the trade-in − rebate + sales tax and fees, when they go into the loan.
For a 35,000 car with 4,000 down, a 6,000 trade-in and 1,200 of fees, 7% sales tax on 35,000 − 6,000 is 2,030. The loan is 35,000 − 4,000 − 6,000 + 2,030 + 1,200 = 28,230.
Car loan payment worked by hand
Monthly rate: r = 7 ÷ 1,200 = 0.0058333.
Growth factor: (1 + r)^60 = 1.417625.
First month's interest: 28,230 × 7 ÷ 1,200 = 164.675.
Payment: 164.675 × 1.417625 ÷ 0.417625 = 558.99.
Interest: 60 payments of 558.9878 total 33,539.27, so interest is 33,539.27 − 28,230 = 5,309.27.
In Excel, =PMT(7%/12, 60, -28230) returns the same 558.99. As a quick check, each 1,000 borrowed at 7% over 60 months costs 19.80 a month.
60 vs 72 vs 84 month car loans
Term, months
Amount financed
APR
Monthly payment
Total interest
Tax/fees
60
28230.00
7%
558.99
5309.27
loan
60
25000.00
7%
495.03
4701.80
cash
72
28230.00
7%
481.29
6423.13
loan
84
28230.00
7%
426.07
7559.57
loan
At the same 7% APR, stretching 60 months to 72 cuts the payment by 77.70 and adds 1,113.86 of interest. Stretching to 84 months cuts it by 132.92 and adds 2,250.30.
Rates offered for longer terms can be higher, which widens the gap, so compare each term at its own quoted APR. A longer loan also repays principal more slowly, so you are more likely to owe more than the car is worth if you sell or trade it early.
Paying tax and fees upfront vs financing them
The second row of the table above pays the 2,030 of tax and 1,200 of fees at purchase, so only 25,000 is financed. The payment falls to 495.03 and interest by 607.47, while the cash due at purchase rises from 4,000 to 7,230.
Trade-ins, negative equity and sales tax
Whether a trade-in lowers the taxed price depends on the state. Texas charges its 6.25% motor vehicle tax on the price minus the trade-in allowance, so a 25,000 car with a 10,000 trade-in owes 937.50 (Texas Comptroller).
California taxes the full price: 1,812.50 on the same car at the 7.25% statewide rate (CDTFA). Without the trade-in credit, the first example's tax rises to 2,450 and its payment to 567.30.
Rebates follow the same split: Texas deducts manufacturer and dealer rebates passed to the buyer before tax, and California taxes the price before the rebate. Some states, California among them, also tax the dealer documentation fee.
If you owe more on the trade-in than it is worth, the difference, called negative equity, goes into the new loan. Owing 11,000 on a car worth 8,000 adds 3,000, and the tax credit still uses the 8,000 value, not your equity.
On a 30,000 car with 2,000 down, that trade-in, 6% tax on 22,000 and 800 of fees, 33,120 is financed. At 8.5% for 72 months, that is 588.82 a month and 9,275.05 of interest.
How much car can I afford?
Work backward from the payment. A payment P repays a loan of P × (1 − (1 + r)^−n) ÷ r, so 500 a month at 6% APR for 60 months repays 25,862.78.
With 3,000 down, 7% sales tax and 1,000 of fees in the loan, the price is (25,862.78 − 1,000 + 3,000) ÷ 1.07 = 26,039.98. Insurance, fuel and maintenance come on top of the payment.
Car loan EMI in rupees
In India the fixed monthly payment is called the EMI, the equated monthly installment, and the formula is the same. A ₹8,00,000 car loan at 9% for 60 months has an EMI of ₹16,606.68 and total interest of ₹1,96,401.05.
Inputs that change the result
Trade-in: enter its value and the payoff still owed separately. Together they set the equity; the tax credit uses the value alone.
Sales tax rate: the state plus local rate where the car is registered, or 0 if the quoted price already includes tax.
Tax credits: turn the trade-in and rebate credits on where the state deducts them before tax, as Texas does, and off where it does not, as in California.
Zero APR: the payment is the amount financed ÷ months, so 24,000 over 36 months is 666.67.
50,000 car, 10,000 down, tax and fees paid upfront
Calculate
Monthly payment
Vehicle price
50,000
Down payment
10,000
Trade-in value
0
Amount owed on trade-in
0
Sales tax rate
7%
Title, registration and dealer fees
2000
Sales tax and fees
Pay upfront
Interest rate (APR)
5%
Loan term
60 months
Cash rebate or incentive
0
Monthly payment
754.85
Amount financed
40,000.00
Sales tax
3,500.00
Cash due at purchase
15,500.00
Total interest
5,290.96
Total cost of the car
60,790.96
Checked against: Calculator.net auto loan calculator, published output for these inputs (fetched 2026-09-26): 754.85 a month, 5,290.96 interest, 60,790.96 total cost
Texas: trade-in deducted before tax
Calculate
Monthly payment
Vehicle price
25,000
Down payment
0
Trade-in value
10,000
Amount owed on trade-in
0
Sales tax rate
6.25%
Trade-in lowers the taxed price
yes
Title, registration and dealer fees
0
Sales tax and fees
Add to the loan
Interest rate (APR)
6%
Loan term
48 months
Cash rebate or incentive
0
Sales tax
937.50
Amount financed
15,937.50
Monthly payment
374.29
Total interest
2,028.55
Checked against: Texas Comptroller example (25,000 vehicle, 10,000 trade-in: tax due on 15,000) × 6.25%; payment and interest from the annuity formula
California: no trade-in tax credit
Calculate
Monthly payment
Vehicle price
25,000
Down payment
0
Trade-in value
10,000
Amount owed on trade-in
0
Sales tax rate
7.25%
Trade-in lowers the taxed price
no
Title, registration and dealer fees
0
Sales tax and fees
Add to the loan
Interest rate (APR)
6%
Loan term
48 months
Cash rebate or incentive
0
Sales tax
1,812.50
Amount financed
16,812.50
Monthly payment
394.84
Total interest
2,139.92
Checked against: CDTFA: the trade-in allowance is not deducted, so 7.25% of 25,000; payment from the annuity formula
Find the amount financed, then apply the loan payment formula with the monthly rate. A 35,000 car with 4,000 down, a 6,000 trade-in, 2,030 of sales tax and 1,200 of fees in the loan leaves 28,230 to finance. At 7% APR over 60 months, r = 7 ÷ 1,200 and the payment is 558.99. Excel's =PMT(7%/12, 60, -28230) returns the same figure.
Does a trade-in reduce the sales tax on a car?
In many states it does. Texas charges its 6.25% motor vehicle tax on the price minus the trade-in allowance, so a 25,000 car with a 10,000 trade-in is taxed on 15,000: 937.50 (Texas Comptroller). California gives no trade-in credit: the full 25,000 is taxed, 1,812.50 at the 7.25% statewide rate (CDTFA). Set the toggle to match your state.
What happens if I owe more on my trade-in than it is worth?
The difference, called negative equity, is added to the new loan. Owing 11,000 on a car worth 8,000 adds 3,000. On a 30,000 car with 2,000 down, 6% tax on the 22,000 after the trade-in and 800 of fees, 33,120 is financed; at 8.5% for 72 months that is 588.82 a month and 9,275.05 of interest. The tax credit is based on the trade-in's value, not your equity in it.
How much car can I afford with a 500 monthly payment?
At 6% APR for 60 months, 500 a month repays a loan of 25,862.78. With 3,000 down, 7% sales tax and 1,000 of fees carried in the loan, that buys a car priced up to 26,039.98. Choose "Price I can afford" and enter your own budget, rate and term to run the numbers backward.
Is a 72- or 84-month car loan a good idea?
A longer term lowers the payment but raises the interest. Financing the default 28,230 at 7% costs 558.99 a month and 5,309.27 of interest over 60 months, 481.29 and 6,423.13 over 72 months, and 426.07 and 7,559.57 over 84 months, at the same rate.
For planning only. Lenders, tax authorities and markets apply their own rounding, fees and rules; confirm figures with them before you commit.
Checked against references
This calculator includes 8 worked examples with independently sourced answers. They run in the test suite, and you can run them here too.
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