How to use the car loan calculator
- Enter the vehicle price, your down payment and the trade-in value.
- Enter the interest rate and term from your lender or dealer quote.
- Enter the sales tax rate and fees that apply where you buy, and say whether the trade-in reduces the taxable price.
- Choose whether tax and fees are rolled into the loan or paid in cash, and add any amount still owed on the trade-in.
- Review the monthly payment, amount financed and schedule; download it as CSV.
Worked example
$30,000 car, $3,000 down, $5,000 trade-in, 6% tax, $500 fees, 7% for 60 months
Sales tax on the $25,000 difference is $1,500. With tax and fees financed, the amount financed is $24,000 and the monthly payment is $475.23. Total interest is $4,513.73, and the total cost including your down payment and trade-in is $36,513.73.
How it works
Taxable price = price − trade-in (when you choose that option) or the full price. Sales tax = taxable price × your rate. Amount financed = price − down payment − trade-in + amount owed on the trade-in + tax and fees (if financed). The payment uses the standard amortization formula with the annual rate ÷ 12, interest rounded to the cent each month.
Assumptions
- Sales tax rate, fees and trade-in treatment are entered by you. Rules differ by state, province and country.
- Fixed rate and equal monthly payments.
- Total cost counts the trade-in equity you give up as part of what the car costs you.
Frequently asked questions
Does my trade-in reduce sales tax?
In many places the trade-in value is subtracted before tax is charged, but not everywhere. Use the toggle to match your local rule.
Should I roll tax and fees into the loan?
Financing them lowers the cash you need today but you pay interest on them for the whole term. Toggle the option to see the difference.
What if I owe more on my trade-in than it is worth?
Enter the amount still owed under the advanced options. Any shortfall (negative equity) is added to the new loan.
Limitations
- Does not include insurance, registration renewals, maintenance or fuel.
- Dealer incentives and rebates are not modelled; subtract them from the price yourself.