Enter the vehicle price, down payment, trade-in, rebates, and fees to see your estimated monthly payment, full amortization schedule, and what that payment means as a share of your income.
This calculator estimates your monthly car payment from the vehicle price, down payment, trade-in (including any loan still owed on it), rebates, fees, and interest rate — then shows a full payoff schedule and what the payment costs as a share of your income.
| Year | Principal paid | Interest paid | Remaining balance |
|---|
See what this same vehicle would cost to lease instead of finance, using the price, trade-in, rebate, and fees you already entered above.
Called a "capitalized cost reduction" on a lease — lowers your payment but you don't get equity from it.
What the car is predicted to be worth at lease-end, as a % of price. Typically 50–65% for a 36-month lease — check your lease offer for the actual figure.
Leases quote a "money factor" instead of APR. This calculator converts APR to money factor automatically (money factor = APR ÷ 2400).
Most leases run 24–36 months, shorter than a typical loan.
This lease estimate uses a simplified standard formula (depreciation fee + finance fee, taxed monthly) and is not a dealer quote. Actual lease offers include acquisition fees, disposition fees, and mileage limits this calculator doesn't model — get the dealer's official numbers before signing.
Beelinger takes the vehicle price, subtracts your down payment, trade-in value, and any rebate, then adds sales tax, fees, and any loan still owed on your trade-in to get your total amount financed. That amount is spread across your loan term using your interest rate to calculate the monthly payment.
If you owe more on your trade-in than it's worth, that difference — negative equity — gets rolled into the new loan and increases what you finance.
| Term | Effect |
|---|---|
| 36–48 months | Higher monthly payment, lowest total interest paid |
| 60 months | The most common term — a balance of payment size and total cost |
| 72–84 months | Lower monthly payment, but significantly more interest paid overall, and higher risk of owing more than the car is worth |
An auto loan is a secured loan — the car itself is the collateral. You borrow the amount financed, then repay principal and interest every month over a fixed term, typically 36, 48, 60, 72, or 84 months. If payments stop, the lender has the legal right to repossess the vehicle, which is what makes auto loan rates generally lower than unsecured personal loans.
Every payment you make is split between interest and principal. Early in the loan, more of each payment goes to interest; later payments put more toward principal — you can see that shift in the amortization schedule above.
You generally have two paths to financing a car, and they work differently.
| Path | How it works |
|---|---|
| Direct lending | You get pre-approved by a bank or credit union before you shop, then use that loan to pay the dealer directly. You know your rate before you negotiate. |
| Dealership financing | The dealer arranges the loan through a lender tied to the manufacturer or a partner bank. Convenient, and sometimes comes with promotional rates — but the dealer's paperwork is where fees and add-ons are easiest to slip in unnoticed. |
A pre-approved rate from direct lending gives you a real number to negotiate against, even if you end up taking the dealer's financing because it's actually better.
This is where a lot of car math goes wrong, because the rules genuinely differ depending on where you live:
Trading in a car isn't just a convenience — in most states, it also lowers your tax bill, because sales tax is calculated on the difference between the new car's price and your trade-in value, not the full price.
For example, on a $50,000 car with a $10,000 trade-in and an 8% tax rate:
($50,000 − $10,000) × 8% = $3,200 in tax
But four jurisdictions — California, Washington D.C., Hawaii, and Virginia — don't offer this reduction at all and tax the full purchase price regardless of your trade-in:
$50,000 × 8% = $4,000 in tax
That's an $800 difference on this example alone — a real reason someone in one of those states might consider selling their old car privately instead of trading it in, since a private sale doesn't get taxed either way but at least captures more of the car's value. A few other states, like Michigan, North Carolina, and South Carolina, allow the reduction but cap how much of the trade-in value counts.
Select your state of purchase above and this calculator automatically switches to the correct method — taxing the full price in the four no-credit jurisdictions, or the reduced amount everywhere else.
These rules can change with new legislation — confirm the current treatment with your state's DMV or department of revenue before finalizing a budget.
Financing isn't the only option, and paying cash has real advantages worth weighing:
The tradeoff: paying cash means that money isn't earning returns elsewhere, and it can leave your emergency fund thinner right when you've taken on a large, unpredictable-maintenance asset. If financing at a low rate frees up cash to keep your emergency fund intact, that's not automatically the worse choice.
A loan payment is built to pay off the entire value of the car. A lease payment only covers the car's expected depreciation over the lease term, plus a finance charge — which is why lease payments are usually lower for the same vehicle.
| Term | What it means |
|---|---|
| Residual value | What the car is predicted to be worth when the lease ends, usually 50–65% of its price for a 3-year lease. A higher residual means a lower payment, since you're financing less depreciation. |
| Money factor | A lease's version of an interest rate, usually shown as a small decimal like .00208 instead of a percentage. Multiply it by 2400 to get the APR-equivalent — this calculator does that conversion for you. |
| Capitalized cost reduction | Lease-speak for a down payment. Unlike a loan down payment, it doesn't build equity — you're prepaying part of the depreciation, not buying part of the car. |
Leasing tends to make more sense if you like driving a newer car every few years, drive under the mileage limit (typically 10,000–15,000 miles/year), and don't want to deal with resale. Financing tends to make more sense if you plan to keep the car long after it's paid off, drive a lot, or want to build equity in something you own outright.
Your monthly payment is only part of what a car actually costs. Before you commit, budget for what comes after the financing:
A car that looks affordable by payment alone can strain your budget once these are added in. Add your expected payment plus these costs into the Budget Calculator to see your full picture before you sign or download the Beelinger budget app to plan your purchase.
Amount financed = vehicle price − down payment − trade-in value − rebate + sales tax on the taxable amount + fees + any loan still owed on your trade-in. The taxable amount is the price minus your trade-in value in most states, or the full price in California, D.C., Hawaii, and Virginia, where trade-ins don't reduce the sales tax base — select your state above and the calculator applies the correct method automatically. Monthly payment is calculated using the standard amortizing loan formula based on your interest rate and loan term. The amortization schedule applies each payment to interest first, then principal, for every period of the loan. The income share compares your estimated payment to your monthly take-home pay; a payment under about 15% of take-home pay is a common affordability guideline, though your full budget — including fuel, insurance, and maintenance — matters more than any single ratio.
Use these related tools to see your full budget picture and plan around your new payment.
Beelinger's Money Coach can help you weigh a car payment against your full financial picture — rent, debt, savings goals, and everything else — before you sign anything.
Your car payment is based on the amount financed — vehicle price minus down payment, trade-in, and rebate, plus sales tax, fees, and any loan still owed on your trade-in — spread across your loan term at your interest rate using a standard amortizing loan formula.
In most states, yes — you're taxed on the difference between the new car's price and your trade-in value, not the full price. Four jurisdictions are the exception: California, Washington D.C., Hawaii, and Virginia tax the full purchase price regardless of trade-in. A few other states cap how much of the trade-in value counts toward the reduction.
If you owe more on your current car than it's worth, that difference is called negative equity. Most dealers roll it into your new loan, which increases your amount financed and your monthly payment. It's often better to pay off that difference separately if you can, rather than financing it over another loan term.
It depends on your state. Some states calculate sales tax on the price after the manufacturer rebate is applied, while others tax the full price before the rebate. This calculator applies the rebate after tax as a simplification — check your state's rule for an exact number.
Rates vary by credit score, loan term, and whether the car is new or used. Shorter terms and stronger credit typically get lower rates. Getting quotes from a bank or credit union before you shop is the best way to know what rate you actually qualify for.
A common guideline is 10–20% down on a new car and at least 10% on a used one. A bigger down payment lowers your monthly payment and reduces the risk of owing more than the car is worth.
No — a longer term lowers your monthly payment but increases the total interest you pay over the life of the loan, and increases the risk of being "underwater" (owing more than the car's value) for longer.
Leasing usually has a lower monthly payment for the same vehicle, since you're only paying for its depreciation over the lease term rather than its full value. But you own nothing at the end — you either return the car or pay its residual value to keep it. Financing costs more per month but builds equity toward owning the car outright.
A money factor is a lease's version of an interest rate, usually shown as a small decimal like .00208 instead of a percentage. To convert it to an APR-equivalent, multiply by 2400 — a .00208 money factor equals roughly a 5% APR.