Auto Loan Calculator
Work out what you actually finance after a down payment, trade-in and sales tax.
Result
Monthly payment: $500.67
Whether a trade-in reduces taxable value is set by your state or country. Registration, documentation and dealer fees vary and are only included if you enter them.
- Amount financed
- $25,960.00
- Sales tax
- $1,960.00
- Total interest
- $4,080.45
- Total cost of the vehicle
- $40,040.45
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Results are arithmetic estimates based on the values you enter. Rates, fees and terms are set by your lender or provider, and your actual agreement controls what you pay or receive. Confirm important figures with them or with a qualified adviser. Read the full disclaimer
How to use the Auto Loan Calculator
- Enter the agreed vehicle price, not the advertised price before negotiation.
- Add your down payment and any trade-in value the dealer has allowed.
- Set the sales tax rate and choose whether your state taxes the price before or after the trade-in.
The price is not the amount you borrow
Three things stand between the agreed price and the loan balance: what you put down, what your trade-in is worth, and what the tax and fees add. Two of those reduce the loan and one increases it, which is why the financed amount often surprises people at signing.
taxable amount = price − trade-in (where the state allows it)sales tax = taxable amount × tax rateamount financed = price + sales tax + fees − down payment − trade-inThe payment is then the ordinary loan payment on that financed figure. Negotiating the price down reduces the tax as well as the loan, which is why a price concession is worth more than an equivalent discount applied later.
Where the trade-in credit applies
Most US states charge sales tax on the difference between the price and the trade-in allowance, so a 6,000 trade-in on a 34,000 car saves tax on 6,000 as well as reducing the balance. Several states do not, and VAT systems generally tax the full price.
This calculator asks rather than assumes. Getting it wrong moves the financed amount by hundreds, so it is worth checking with the dealer or the state revenue department before relying on either figure.
Term length moves the payment and the total in opposite directions
A longer term always lowers the monthly payment and always raises the total interest. Terms of 72 and 84 months are common precisely because they make an expensive car look affordable per month.
The other cost of a long term is timing. A car depreciates fastest in its first years while a loan repays principal slowest in its first years, so a long term keeps the balance above the vehicle’s value for longer. Selling or writing off the car in that window means owing more than the insurer or buyer pays.
Compare offers on the financed amount
Dealer finance, a bank loan and a credit union loan can quote similar rates on different balances, because they treat fees and add-ons differently. Put each offer through with its own fees and compare the amount financed and the total interest rather than the monthly payment, which can be made to look like anything by changing the term.
With your numbers
- Sales tax = 7% of the taxable amount = $1,960.00
- Amount financed = $34,000.00 + tax + fees − $4,000.00 down − $6,000.00 trade-in = $25,960.00
- Monthly payment = $500.67 over 60 months, $4,080.45 of it interest
Quick reference
Whether a trade-in reduces taxable value is set by your state or country. Registration, documentation and dealer fees vary and are only included if you enter them.
| Example | Monthly payment |
|---|---|
| USD 34,000 car, 6,000 trade-in, tax after trade-in | $500.67 |
| USD 34,000 car, tax on the full price | $508.77 |
| USD 28,000 car, no trade-in, 72 months | $468.98 |
| USD 18,000 used car, 48 months | $443.15 |
| USD 55,000 truck, large trade-in | $638.28 |
| USD 22,000 car at 0% dealer finance | $598.33 |
| EUR 30,000 car, 20% VAT-inclusive price | €475.34 |
| EUR 16,000 used car over 48 months | €252.56 |
Common questions about the Auto Loan Calculator
- Does a trade-in reduce the sales tax I pay?
- In many US states it does: tax is charged on the price after the trade-in credit. In others, and in most countries with VAT, it does not. The calculator offers both and asserts neither, because the rule is set where you buy.
- Why is the amount financed higher than the price minus my down payment?
- Sales tax and any fees rolled into the loan are added to the balance. On a 34,000 car with 7% tax that is nearly 2,000 more than the sticker suggests.
- Is a longer term cheaper?
- The payment is lower and the total cost is higher. Stretching 26,000 from 60 to 72 months lowers the monthly figure but adds interest, and it also keeps you owing more than the car is worth for longer.
- What is not included here?
- Registration, title, documentation and dealer preparation fees unless you enter them, plus insurance, servicing, fuel and depreciation. Those are the real cost of running the car rather than of borrowing for it.