Find out the real monthly payment on a car loan — not just principal and interest, but what it costs once sales tax is rolled into the amount financed. Enter the price, your down payment and trade-in, the tax rate, APR, and term to see your monthly payment and total interest. Then, to see what the car costs to actually own once depreciation, fuel, insurance, and maintenance are counted, open the True Cost of a Car calculator.
Monthly rate r = APR ÷ 12 and number of payments n = term in months; payment = amount financed × r ÷ (1 − (1 + r)^−n), the standard amortization formula.
Total interest = (monthly payment × n) − amount financed; total of payments adds that interest back to the amount financed.
Yes. Sales tax is calculated on the price after your trade-in credit and added to the amount financed, since most buyers roll tax into the loan. Enter 0% if your state or province taxes the deal differently or you pay tax separately.
How does a trade-in change my payment?
A trade-in does two things: it reduces the amount you finance, and in most US states and Canadian provinces it also lowers the price that sales tax is charged on — so a trade-in can cut your payment by more than its sticker value alone.
Does it work for Canada?
Yes. Choose Canada and figures are shown in CAD. Enter your provincial sales tax rate (for example 13% HST in Ontario) and the calculator applies it to the price after your trade-in credit.