This Car Loan Calculator is a financial tool to help you understand and plan for your monthly car loan payments. It takes into account the car price, down payment, trade-in value, tax rate, annual interest rate, and the loan term in months.

## Car Loan Calculator

Calculate your monthly car loan payments including down payment, trade-in, and tax.

Monthly Payment:
$0 ## How to Use the Calculator 1. Input Car Price: Enter the total price of the car you intend to purchase. 2. Down Payment and Trade-In: Provide the amounts for any down payment or trade-in value. 3. Include Tax Rate: Specify the sales tax rate applicable to your car purchase. 4. Interest Rate and Loan Term: Enter the annual interest rate of your loan and the term of the loan in months. 5. Calculate: Click the ‘Calculate’ button to see your monthly payment. ## Formula Used The monthly car loan payment is calculated using the formula: Monthly Payment (P) = (L * c * (1 + c)^n) / ((1 + c)^n – 1) Where: • P is the monthly payment. • L is the net loan amount (car price – down payment – trade-in value + tax). • c is the monthly interest rate (annual interest divided by 12 months). • n is the number of payments (loan term in months). ## Examples •$30,000 car, 5% interest, 60 months, 7% tax, $5,000 down: • Monthly Payment:$487.99
• $25,000 car, 3.5% interest, 48 months, 8% tax,$3,000 trade-in:
• Monthly Payment: $503.22 •$20,000 car, 6% interest, 72 months, no tax, $2,000 down: • Monthly Payment:$301.64