Free Car Loan Calculator
Estimate a car loan payment with down payment, trade-in, amount owed, sales tax and fees, plus amount financed and total cost.
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How to estimate a car payment with trade-in and sales tax
Enter the vehicle price, down payment, trade-in, tax and fees to see the amount financed, monthly payment and total cost.
- Enter the vehicle price and your cash down payment.
- Add your trade-in value and anything you still owe on that vehicle.
- Enter the sales tax rate and fees, and choose whether tax applies after the trade-in.
- Enter the APR and pick a loan term in months.
- Read the monthly payment, amount financed and total cost, and compare other terms in the table.
When to use a car loan calculator
Dealers often talk about the monthly payment, but that number hides a lot. The price, your trade-in, the loan you still owe on your current car, sales tax, dealer and registration fees, the APR and the term all change what you pay. A car loan calculator lets you put each of those pieces in place before you visit a dealer, so you know the amount you will finance and can check the buyer's order line by line.
It is also useful when you compare a dealer offer with a loan from a bank or credit union. Enter both APRs with the same price and term and look at the difference in total interest. The term table makes it easy to see how much more a 72 or 84 month loan costs compared with 48 or 60 months.
Worked example: a 35,000 dollar car with a trade-in
Say the car costs 35,000 dollars. You put 3,000 dollars down and trade in a car worth 8,000 dollars that still has 5,000 dollars owing. Sales tax is 7 percent, fees are 800 dollars, the APR is 6.5 percent and the term is 60 months. With tax applied after the trade-in, the taxable amount is 27,000 dollars and the tax is 1,890 dollars. Your trade-in equity is 3,000 dollars.
The amount financed is 35,000 plus 1,890 plus 800, minus 3,000 and 8,000, plus the 5,000 still owed, which comes to 31,690 dollars. The monthly payment is 620.05 dollars. Over 60 months you pay 37,203.07 dollars, of which 5,513.07 dollars is interest. Adding the down payment, you spend 40,203.07 dollars out of pocket, and the car itself costs 43,203.07 dollars once price, tax, fees and interest are counted.
If your state taxes the full price instead, untick the option. Tax rises to 2,450 dollars, the amount financed becomes 32,250 dollars and the payment is 631.01 dollars a month.
How the numbers are calculated
The taxable amount is the price minus the trade-in value when the option is ticked, or the full price when it is not. Sales tax is that amount times the tax rate. The amount financed is price plus tax plus fees, minus the down payment and trade-in value, plus the amount owed on the trade-in.
The monthly payment uses the standard amortization formula with a monthly rate of APR divided by 12. Total of loan payments is the payment times the number of months, and total interest is that figure minus the amount financed. If the down payment and trade-in cover everything, the calculator shows nothing to finance.
Common mistakes to avoid
Forgetting the amount still owed on a trade-in is the biggest one. A trade-in worth less than its payoff does not lower your loan; the shortfall is added to it. Another mistake is judging a deal only by the payment. Stretching the term lowers the payment but raises total interest, and it can leave you owing more than the car is worth for years.
Tax rules for trade-ins, rebates and fees vary by state and country, so confirm them locally. This is general information; for big financing decisions, consider asking a lender or financial professional to review the terms.
Useful tips and limitations
- Look at total interest in the term table, not only the monthly payment, before choosing a longer loan.
- If you owe more than the trade-in is worth, the difference is added to the new loan and shown as negative equity.
- Ask the dealer for the out-the-door price and enter it as price plus fees so nothing is missed.
- Get a preapproved APR from a bank or credit union first so you can compare it with dealer financing.
Common questions
Does the car loan calculator tax the trade-in?
You choose. With the box ticked, tax is charged on the price minus the trade-in value, which is how many US states work. Untick it to tax the full vehicle price.
Are fees taxed in the car loan calculator?
No. Fees are added to the amount financed but are not taxed. If your state taxes certain fees, add that tax to the fee amount yourself.
What does total cost of the car mean in the car loan calculator?
It is the vehicle price plus sales tax, fees and all the interest you pay on the loan. It does not include any old loan balance you paid off through the trade-in.
How does the car loan calculator treat negative equity on a trade-in?
When you owe more than the trade-in is worth, the difference is added to the amount financed. The results label it as negative equity rolled into the loan.
Can I use the car loan calculator for a used car or private sale?
Yes. Enter the agreed price, set the trade-in fields to 0 if you have none, and enter the tax and fees that apply to your purchase.
Why does the car loan calculator show a payment of zero?
Your down payment and trade-in equity cover the price, tax and fees, so there is nothing left to finance.
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