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Calculators/Loans & Debt

Car Payment Calculator

Estimate your monthly car payment with taxes, trade-in, and down payment factored in.

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How to Use This Calculator

1. Enter the vehicle price (sticker price or negotiated price).

2. Add your down payment and any trade-in value.

3. Enter your state's sales tax rate — this varies significantly by state.

4. Enter the APR (Annual Percentage Rate) from your lender and loan term.

State tip: Sales tax on vehicles ranges from 0% (MT, NH, OR, DE, AK) to 8%+ (CA, TN, RI). Some states cap the tax (e.g., TX caps at 6.25%).

Real-World Examples

$35,000 car, $5k down, 6.9% APR, 60 months, 7% tax:
Loan: $35,000 − $5,000 + $2,450 tax = $32,450
Monthly: ~$642 | Total interest: ~$6,080
$25,000 car, $3k down, $5k trade-in, 0% APR, 36 months:
Loan: $17,000 at 0% = $472/month

Frequently Asked Questions

What is a good interest rate for a car loan?

As of 2024, rates for new cars range from 5–8% for excellent credit (720+) to 12%+ for subprime. Used cars typically run 1–2% higher. Credit unions often beat dealership financing.

How much should I put down?

20% is the recommended minimum for new cars to avoid being underwater. For used cars, 10% is commonly suggested.

Is a 72-month loan a bad idea?

Longer terms lower monthly payments but dramatically increase total interest paid. A $30,000 loan at 7% costs ~$4,900 over 48 months but ~$6,900 over 72 months.

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