Car loan calculator with tax, trade-in and fees
Price, trade-in, down payment, sales tax and fees in one place: see the real amount financed, the monthly payment and the total cost of borrowing.
- Runs in your browser
- Nothing you enter is sent
- Free, no account
Amount financed
$25,440.00
what the lender actually lends
Sales tax
$1,690.00
6.5% of $26,000
Total cost of borrowing
$4,928.77
interest only
Out-the-door price
$34,440.00
price + tax + fees
Cash at signing
$3,000.00
Loan paid off
January 1, 2031
5 years
- Vehicle price92.9%
- Sales tax4.9%
- Fees2.2%
- Cash at signing9.0%$3,000.00
- Principal repaid76.2%$25,440.00
- Interest14.8%$4,928.77
Total cash you will part with, from signing to the final payment.
Including the $6,000.00 of value you gave up in the trade-in, this car costs you $39,368.77 in total.
Formula and working
Sales tax
Tax = (price − trade-in) × rate Tax = 26,000 × 6.5% = $1,690.00
Amount financed
Financed = price + tax + fees − down payment − net trade-in net trade-in = 6,000 − 0 = 6,000 Financed = 32,000 + 1,690 + 750 − 3,000 − 6,000 = $25,440.00
Monthly payment
M = P × i / (1 − (1 + i)^−n) i = 7.2% ÷ 12 = 0.00600000 n = 60 M = 25,440 × 0.00600000 ÷ (1 − 1.00600000^−60) = $506.15
Total cost of borrowing
Interest = (M × n) − Financed Interest = 506.15 × 60 − 25,440 = $4,928.77
Sales tax rules vary by state and country. The trade-in tax credit switch covers the biggest difference; check your local rate before relying on the tax figure.
| # | Date | Payment | Principal | Interest | Balance |
|---|---|---|---|---|---|
| 1 | Feb 2026 | $506.15 | $353.51 | $152.64 | $25,086.49 |
| 2 | Mar 2026 | $506.15 | $355.63 | $150.52 | $24,730.86 |
| 3 | Apr 2026 | $506.15 | $357.76 | $148.39 | $24,373.10 |
| 4 | May 2026 | $506.15 | $359.91 | $146.24 | $24,013.19 |
| 5 | Jun 2026 | $506.15 | $362.07 | $144.08 | $23,651.12 |
| 6 | Jul 2026 | $506.15 | $364.24 | $141.91 | $23,286.88 |
| 7 | Aug 2026 | $506.15 | $366.43 | $139.72 | $22,920.45 |
| 8 | Sep 2026 | $506.15 | $368.63 | $137.52 | $22,551.82 |
| 9 | Oct 2026 | $506.15 | $370.84 | $135.31 | $22,180.98 |
| 10 | Nov 2026 | $506.15 | $373.06 | $133.09 | $21,807.92 |
| 11 | Dec 2026 | $506.15 | $375.30 | $130.85 | $21,432.62 |
| 12 | Jan 2027 | $506.15 | $377.55 | $128.60 | $21,055.07 |
Showing 1–12 of 60 rows
Assumptions
- A simple-interest car loan at a fixed APR with equal monthly payments — the standard structure in the US, Canada, the UK and Australia.
- Sales tax is applied once at purchase, not to each payment (which is how some leases work).
- Depreciation, insurance, fuel, maintenance and extended warranties are not included in the payment.
- Dealer add-ons such as gap insurance or paint protection should be entered in the fees field if they are financed.
How to use the car loan calculator
- Enter the negotiated vehicle price — the figure before tax and fees, not the sticker price and not the monthly payment the dealer opened with.
- Add your trade-in value and anything you still owe on that vehicle. If you owe more than it is worth, the calculator flags the negative equity.
- Enter your cash down payment, the local sales tax rate and the fees for title, registration and documentation.
- Set the APR and the term in months. Try 48, 60 and 72 to see what the longer term really costs.
- Check the amount financed against the dealer's figure. If they differ, something has been added to the deal.
Negotiate the price, not the payment
A monthly payment can be made to look like almost anything by stretching the term, so the payment is the wrong thing to negotiate. Four numbers determine the deal: the vehicle price, the trade-in allowance, the APR and the term. Fix the first two, shop the third, and choose the shortest version of the fourth you can afford.
The calculator separates these deliberately. The out-the-door price is what the car costs including tax and fees. The amount financed is what is left after your cash and trade-in. The total cost of borrowing is the interest on top. A dealer can lower one and raise another while keeping the payment identical.
What a longer term costs: 30,000 financed at 7.2% APR
| Term | Monthly payment | Total interest | Extra vs 36 months |
|---|---|---|---|
| 36 months | 929.06 | 3,446 | — |
| 48 months | 721.17 | 4,616 | +1,170 |
| 60 months | 596.87 | 5,812 | +2,366 |
| 72 months | 514.36 | 7,034 | +3,588 |
| 84 months | 455.72 | 8,280 | +4,834 |
Going from 36 to 84 months cuts the payment by roughly half and more than doubles the interest. It also keeps you underwater far longer: a new car typically loses 20% or more of its value in the first year, while an 84-month balance barely moves.
Sales tax and the trade-in credit
In most US states, sales tax on a vehicle is charged on the price after your trade-in is deducted, so a 6,000 trade-in at a 6.5% rate saves 390 in tax on top of the 6,000 itself. A minority of states — including California, Michigan (partially capped) and Virginia — do not grant the full credit, and tax the whole purchase price. The toggle in the calculator switches between the two treatments.
Outside the US the equivalent is VAT or GST, which is generally already included in an advertised price. In that case set the tax rate to zero and enter the advertised figure as the vehicle price.
Negative equity
If you owe 14,000 on a car the dealer values at 11,000, the 3,000 shortfall does not disappear — it is added to the new loan. You then finance more than the new car is worth, pay interest on the old car's debt for years, and start the cycle deeper underwater. The calculator warns when this happens and includes the rolled-in amount in the payment.
What is not included
This is a financing calculator, not a running-cost calculator. Insurance, fuel or charging, tyres, servicing, depreciation and parking are all excluded, and together they usually cost more than the loan payment. Gap insurance, extended warranties and paint protection should go in the fees field if you are financing them — they are frequently the most profitable part of the deal for the dealer and the easiest thing to decline.
Questions
How is the amount financed worked out?
Vehicle price plus sales tax plus fees, minus your cash down payment, minus the net value of your trade-in (its value less anything you still owe on it). Fees can be paid in cash instead of financed with the toggle.
Is sales tax charged on the trade-in?
In most US states you only pay tax on the price after the trade-in credit, which is what the calculator assumes by default. A handful of states tax the full price — switch the toggle off for those.
What is negative equity and why does it matter?
If you owe more on your current car than the dealer gives you for it, the shortfall gets rolled into the new loan. You then start the new car owing more than it is worth, and the calculator flags it because it inflates both the payment and the total interest.
Is a longer term a good idea?
A 72 or 84-month loan lowers the payment but raises the total interest sharply, and the car depreciates faster than the balance falls, so you spend longer underwater. Compare a few terms in the calculator to see the trade-off in money rather than in payment size.