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TNToolsNexus

Auto loan calculator

Estimate your monthly car payment with sales tax and trade-in included — plus total interest and the true total cost of the loan.

Monthly payment

$655.42

Amount financed
$33,100.00
Sales tax (on price − trade-in)
$2,100.00
Total interest over 60 months
$6,225.20
Total cost (down payment + all payments)
$43,325.20

Calculations run in your browser — nothing you enter is sent or stored.

Reviewed by Aqil Abbas Khan, Founder & Editor of ToolsNexus

How this is calculated

Sales tax is applied to the vehicle price minus the trade-in, the credit most US states allow: tax = (price − trade-in) × rate. The amount financed is price − down payment − trade-in + tax. The monthly payment uses the standard annuity formula M = A × r(1+r)^n / ((1+r)^n − 1), where A is the amount financed, r is the monthly rate (APR ÷ 12), and n is the term in months. Worked example: a $30,000 car with $5,000 down at 6% for 60 months finances $25,000 and costs $483.32 per month; total interest is $3,999.20. Results are rounded to the cent at the payment level. If your state taxes the full price before the trade-in credit, enter the trade-in amount in the down payment field instead.

Sources

Disclaimer: This calculator provides educational estimates only and is not financial, tax, or investment advice. Figures are simplified and may not reflect your full situation — consult a qualified professional before making financial decisions.

Enter the vehicle price, your down payment and trade-in, your state’s sales tax, and the loan’s rate and term — you’ll see the estimated monthly payment instantly, along with the numbers dealers rarely volunteer: the total interest and the loan’s true total cost. Free, no signup, and every calculation runs in your browser.

How to use this calculator

  1. Vehicle price — the negotiated price of the car, not the sticker.
  2. Down payment — cash you’ll pay upfront.
  3. Trade-in value — what the dealer credits for your current car.
  4. Sales tax — your combined state and local rate; it’s applied to the price minus your trade-in.
  5. Interest rate — the APR you’ve been quoted.
  6. Term — the loan length in months; 36–84 are typical.

The result updates as you type, and the address bar updates too — copy the URL to save or share a scenario.

How the trade-in cuts your sales tax

In most US states, tax is charged on the price minus the trade-in credit. On a $30,000 car with a $5,000 trade-in at 8%, you’re taxed on $25,000 — that’s $2,000 instead of $2,400, so the trade-in is worth $400 more than its face value. This calculator uses that convention, and it’s stated in the methodology below so you can check the math. A handful of states tax the full price before the credit; if yours does, enter the trade-in amount in the down payment field instead — the amount financed stays correct and the tax follows your state’s rule.

Longer terms look cheaper — until you add them up

The monthly payment is the number on the dealer’s four-square worksheet, and stretching the term is the easiest way to make it look small. Run $35,000 financed at 7% through the calculator both ways: at 60 months the payment is about $693 with roughly $6,600 of total interest; at 84 months it drops to about $528 — but total interest climbs to roughly $9,400. That $165 of monthly relief costs about $2,800 extra, and because cars depreciate fastest in the first years, an 84-month loan leaves you owing more than the car is worth for longer. A useful habit: choose the term by total cost, then adjust the down payment until the monthly figure fits your budget — a pre-approval from a bank or credit union before you visit the dealership gives you a real APR to plug in here and a baseline to compare against dealer financing. If high-interest card debt is competing for the same dollars, check the credit card payoff calculator first — card APRs usually dwarf auto rates.

Limits

This is the loan’s core cost, not the full deal. Documentation, title, and registration fees aren’t modeled — add them to the price field if you’ll finance them. The tax field is a single combined rate, and state rules differ (some cap the trade-in credit or tax the full price). The math assumes a fixed rate with no extra payments, and the APR you enter should be the lender’s quoted APR, which can include fees beyond the note rate. Rolling negative equity from an old loan into the new one? Add that balance to the vehicle price to see its real effect.

The same annuity formula powers our mortgage payment calculator if you’re comparing bigger borrowing decisions. Browse all our calculators — each shows its formula and sources — and our file tools, which run privately in your browser too.

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Frequently asked questions

Does this calculator include sales tax and fees?
Sales tax is included through the tax field and is applied to the price minus your trade-in, which is how most states calculate it. Dealer documentation, title, and registration fees are not modeled — if you plan to finance them, add them to the vehicle price field.
Why does my trade-in reduce the sales tax?
Most US states only tax the difference between the new vehicle price and your trade-in credit, so a $5,000 trade-in on a $30,000 car means tax is charged on $25,000. A few states tax the full price — in that case, enter your trade-in value in the down payment field instead so the tax math matches your state.
Is a longer loan term cheaper?
Only per month. Stretching a $35,000 loan at 7% from 60 to 84 months cuts the payment by about $165 but adds roughly $2,800 of interest, and you stay underwater on the car longer because it depreciates faster than the loan amortizes.
What interest rate should I enter?
Use the APR you have actually been quoted by a lender, credit union, or the dealer. Rates vary widely with credit score, loan term, and whether the car is new or used, so getting a pre-approval before visiting the dealership gives you a real number to compare against dealer financing.
Is this an official loan quote?
No — it is an educational estimate from the inputs you provide. Actual offers depend on your credit, fees, and lender terms. Compare written offers from more than one lender before signing.

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