Find the monthly payment on a new or used car, with your down payment, trade-in, sales tax and fees, and see the total cost before you sign.
How to use the car loan calculator
- Enter the car's price, your down payment and your trade-in's value, if any.
- Enter the interest rate from the dealer or lender and the term in months, or tap 36, 48, 60, 72 or 84.
- Under Tax, fees, trade-in and balloon, add your sales tax rate, what you still owe on the trade-in, fees and any balloon payment.
- Read the monthly payment, the amount financed and the total cost, and open the schedule to see each payment.
How the amount you borrow is worked out
Amount financed = price + sales tax + financed fees − down payment − (trade-in − amount owed on it)
Example: a $35,000 car, $5,000 down, an $8,000 trade-in with $3,000 still owed on it, 7% sales tax on the price after the trade-in ($27,000 × 7% = $1,890) and $500 of fees added to the loan: $35,000 + $1,890 + $500 − $5,000 − $5,000 = $27,390.
At 7% a year over 60 months that's $542.35 a month. You repay $32,541 in all, of which $5,151 is interest, so with the down payment and trade-in the car costs $42,541.
Ways to pay less for a car loan
- Shorter term. Going from 72 to 48 months raises the payment from $467 to $656 but saves $2,139 in interest on this example.
- Compare the rate, not just the payment. A dealer can lower a payment by stretching the term. Ask for the APR and the total you'll repay.
- Pay extra when you can. Extra payments go straight to the balance; add them under Extra payments to see the saving.
Not sure about a car yet? The loan calculator works for any loan, and the EMI calculator shows a car loan the way Indian banks quote it.
Frequently asked questions
How is a car loan payment calculated?
First work out the amount financed: the price plus sales tax and any fees you finance, minus your down payment and your trade-in's value (less anything still owed on it). Then M = P × i ÷ (1 − (1 + i)^−n), with i the yearly rate ÷ 12 and n the number of months. $27,390 at 7% for 60 months is $542.35 a month.
Does a trade-in lower the sales tax?
In many US states it does: tax is charged on the price minus the trade-in. Some states tax the full price. On a $35,000 car with an $8,000 trade-in and 7% tax, that's $1,890 instead of $2,450. Untick "Tax the price after the trade-in" if your state taxes the full price, and check your state's rule before you buy.
Is a 72- or 84-month car loan a good idea?
It lowers the payment but costs more interest, and you may owe more than the car is worth for longer. Financing $27,390 at 7% costs $656 a month over 48 months ($4,093 interest), $542 over 60, $467 over 72 and $413 over 84 months ($7,335 interest).
What is a balloon payment?
A large final payment left until the end of the loan, which makes the monthly payments smaller. With a $10,000 balloon, $27,390 at 7% over 48 months costs $474.76 a month instead of $655.89, but the last payment is $10,475, and you pay $5,398 interest instead of $4,093.
What if I owe more on my trade-in than it's worth?
That's negative equity, and the difference is usually added to the new loan. In the example, owing $10,000 on an $8,000 trade-in adds $2,000, so you'd borrow $34,390 instead of $27,390. Enter what you still owe under "Tax, fees, trade-in and balloon" to include it.
How do I use it for a car loan in India?
Choose INR and enter the on-road price (the ex-showroom price plus registration, road tax and insurance), your down payment and any exchange value for your old car. Car prices in India already include GST, so there's no sales tax to add. The monthly payment shown is your EMI.