moneyWhat this auto loan calculator does
It turns a car’s sticker price into the number that matters: the monthly payment. It works out sales tax, subtracts your down payment and trade-in, adds any fees you finance, and amortizes the result at your APR. You also see total interest and the full cost of the car including what you paid up front.
How to use it
Enter the negotiated vehicle price, cash down payment and trade-in value. If you still owe money on the trade-in, enter its value minus the payoff. Add your sales tax rate and any title, registration or dealer fees you plan to finance.
Most states tax only the difference between the price and your trade-in; untick the box if yours taxes the full price. Then pick a term from 36 to 84 months, or enter a custom term.
Assumptions
- Simple-interest loan with a fixed APR and equal monthly payments, interest rounded to the cent; the final payment is adjusted by a few cents.
- Sales tax is applied to the price (less trade-in when ticked). Rebates, add-on products, GAP coverage, negative equity and tax on fees are not modeled.
- Total cost = down payment + trade-in value + all loan payments.
Worked example
A $35,000 car with $4,000 down, a $6,000 trade-in, 7% sales tax on the $29,000 difference ($2,030.00) and $500 in fees means financing $27,530.00. At 7.5% APR for 60 months the payment is $551.64 and interest totals $5,568.69. Stretching to 72 months lowers the payment to $476.00 but raises interest to $6,741.69.
Frequently asked questions
Does a trade-in reduce sales tax?
In most US states, yes: tax is charged on the price minus the trade-in allowance. A few states tax the full price. Check your state’s rule and use the checkbox to match it.
Is a longer car loan a good idea?
A 72 or 84-month loan lowers the monthly payment but increases total interest, and you may owe more than the car is worth for longer. Compare terms here and choose the shortest payment you can comfortably afford.
Should I include fees in the loan?
Financing fees is convenient but you pay interest on them. Enter only the fees you will actually roll into the loan; fees paid in cash belong in your down payment.
Why is the dealer’s payment different?
Dealers may add products such as service contracts or GAP, use a different first-payment date, or quote a rate that depends on credit approval. Ask for an itemized buyer’s order and compare it with this estimate.