💰 Financial
Auto Loan Calculator
Estimate your monthly car payment, taking into account down payments, vehicle trade-in value, and sales tax to get an accurate total cost of ownership.
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Formula
Loan Amount = (Price - Down Payment - Trade In) × (1 + Tax Rate)Price- Vehicle purchase price
Down Payment- Cash paid upfront
Trade In- Value of your old vehicle
Tax Rate- State/local sales tax rate
Example
Buying a New Car with a Trade-In
Purchasing a $35,000 car with a $5,000 trade-in and 7% sales tax.
- Calculate taxable amount: $35,000 - $5,000 trade-in = $30,000.
- Add sales tax: $30,000 × 1.07 = $32,100 total financed amount.
- Determine loan terms: 60 months at 6% interest.
- Calculate monthly payment: The resulting payment is $620.59 per month.
Frequently Asked Questions
In many regions, sales tax is only applied to the difference between the new car price and your trade-in value, which can save you a significant amount in taxes.
It pays to shop around. Dealerships sometimes offer 0% promotional financing, but if that is not available, a local credit union or bank may offer a lower interest rate.
While 60- or 72-month loans lower your monthly payment, they increase the total interest paid and keep you "underwater" (owing more than the car is worth) for longer. 48 to 60 months is generally recommended.