Estimate your monthly car payment, including sales tax, your down payment, and any trade-in value.
Many states tax the vehicle price after subtracting your trade-in value. Set the tax rate to 0 if your state taxes differently or you want a pre-tax estimate.
Your loan amount is the vehicle price, minus your down payment and trade-in value, plus sales tax. Sales tax is calculated on the price after your trade-in credit is subtracted, which is how most states with a trade-in tax credit handle it - though rules vary, so check your local DMV or dealer if you need an exact figure. From there, the monthly payment uses the standard loan amortization formula, spreading the loan amount and interest evenly across your chosen term.
If you are financing something other than a vehicle, the Personal Loan Calculator uses the same payment math without the sales tax and trade-in fields.
For a $32,000 vehicle with a $3,000 down payment, a $2,000 trade-in, 7% sales tax, a 6.5% APR, and a 60 month term: the taxable amount is $30,000 (price minus trade-in), sales tax comes to $2,100, and the total loan amount is $29,100. That works out to a monthly payment of $569.37, total interest of $5,062.49, and a total cost of $34,162.49 over the life of the loan.
How is sales tax handled in this calculator?
It assumes your state taxes the vehicle price after subtracting your trade-in value, which is common but not universal. If your state taxes the full price regardless of trade-in, or doesn't apply sales tax to vehicles at all, set the tax rate to 0 and add any tax separately, or check with your dealer for the exact rule where you live.
Should I include my trade-in value?
Yes, if you are trading in a vehicle. It reduces both the amount you need to finance and, in most states, the amount that gets taxed, which lowers your monthly payment on two fronts.
What loan term should I choose?
Shorter terms mean higher monthly payments but less total interest paid. Longer terms lower the monthly payment but increase the total interest, sometimes substantially - a 84 month loan can cost far more in interest than a 60 month loan for the same amount.
Does this include registration, title, or dealer fees?
No. This covers the vehicle price, sales tax, down payment, and trade-in only. Add any registration, title, documentation, or other dealer fees to the vehicle price yourself if you want them included in the financed amount.
Why is the total interest so much higher on longer loan terms?
Interest accrues on whatever balance remains, for as long as it remains. A longer term keeps a larger balance outstanding for more months, so even at the same interest rate, total interest paid grows significantly as the term stretches out.
Is the interest rate here the same as the APR a dealer quotes?
It should be - enter the APR (annual percentage rate) you are quoted or expect to qualify for. Dealer financing sometimes includes markups over the rate a lender actually offers, so it can be worth comparing a dealer's APR against a quote from your own bank or credit union.
Can I use this for a used car loan?
Yes, the math is identical. Used car loans typically carry higher interest rates than new car loans, so make sure the APR you enter reflects what you are actually being offered rather than a new-car rate.