CALCSLIP

Auto loan calculator

The monthly car payment once the trade-in, sales tax and fees are counted.

$
%
$
%
Trade-in and fees
$
$
$

Most US states do; a few tax the full price.

Result

Monthly payment
$562.79
Vehicle price
$35,000.00
Sales tax (7%)
$1,890.00
Fees
$600.00
Trade-in equity
-$5,000.00
Down payment
-$4,000.00
Amount financed
$28,490.00
Total interest
$5,277.58
Cash due at signing
$4,000.00
Total cost of the car
$42,767.58

How this was calculated

  1. Sales tax

    (Price − trade-in) × tax rate

    $27,000.00 × 7% = $1,890.00

  2. Amount financed

    Price − down − (trade-in − owed) + tax + fees

    $35,000.00 − $4,000.00 − $5,000.00 + $2,490.00 = $28,490.00

  3. Monthly payment

    M = P × r ÷ (1 − (1 + r)^−n)

    r = 6.9% ÷ 12, n = 60 → $562.79

What this calculation assumes

  • A fixed-rate simple-interest loan with equal monthly payments, which is how most US auto loans work.
  • Negative equity (owing more on the trade-in than it is worth) is added to the new loan.
  • Tax rules, dealer fees and incentives vary by state and dealer: check the buyer's order before you sign.

Estimates for information only. They are not financial advice, a loan offer or a guarantee of any return, rate or approval. Lenders and providers calculate with their own terms; check yours before you decide.

What you finance is not the sticker price

The loan starts from the price, then the down payment and the trade-in's equity come off, and sales tax and fees go on unless you pay them at signing. If you owe more on your trade-in than it is worth, that negative equity is added to the new loan, which is common and expensive.

Example: a $35,000 car with $4,000 down and an $8,000 trade-in that still has $3,000 owed gives $5,000 of equity. Tax at 7% on $27,000 (price after trade-in) is $1,890; with $600 of fees financed, the loan is $35,000 − $4,000 − $5,000 + $2,490 = $28,490.

The payment formula

M = P × r ÷ (1 − (1 + r)^−n)

P is the amount financed, r the APR divided by 12 and n the number of months. At 6.9% for 60 months, the $28,490 loan above costs $562.79 a month and $5,277.58 in interest.

Longer terms cost more than they save

Stretching the same loan from 60 to 84 months lowers the payment by about a quarter but adds roughly 40% more interest, and lenders often charge a higher rate for longer terms. A long loan also leaves you owing more than the car is worth for longer, which matters if you sell or trade early.

Use Pin & compare to set a 48-month loan against a 72-month one and see both the payment and the total interest change.

Questions people ask

Does the trade-in reduce sales tax?

In most US states, yes: tax is charged on the price minus the trade-in value. A few states (for example California, Hawaii, Kentucky and Maryland, among others) tax the full price. Switch off Tax the price after the trade-in for those.

Should I roll tax and fees into the loan?

It lowers the cash you need at signing but you pay interest on them for the whole loan. Paying them up front is cheaper if you can.

What credit score do I need for a good rate?

Lenders set rates by score band; the best advertised rates usually need a score in the 700s. Get pre-approved by a bank or credit union before visiting the dealer so you have a rate to compare.