Auto Loan Calculator with Tax & Trade-In
Estimate your monthly car payments accurately including sales tax and trade-in value.
Estimated Monthly Payment
$0.00
Total Loan Amount:
$0.00
Sales Tax Amount:
$0.00
Total Interest Paid:
$0.00
Total Cost of Car (Inc. Interest):
$0.00
Understanding Your Auto Loan Calculation
Purchasing a vehicle represents a significant financial commitment. This Auto Loan Calculator is designed to provide a comprehensive view of your potential financial obligation by factoring in variables often overlooked by simple estimators, such as sales tax and trade-in values.
How Trade-In Value Affects Sales Tax
In many jurisdictions, the value of your trade-in vehicle can significantly reduce your tax burden. Generally, sales tax is calculated on the difference between the new car's price and your trade-in's value.
Example: If you buy a car for $30,000 and trade in a vehicle worth $10,000, you may only be taxed on the remaining $20,000. Our calculator applies the tax rate to the (Vehicle Price – Trade-In Value) to give you a realistic estimate.
Key Factors Influencing Your Monthly Payment
- Loan Term: Longer terms (e.g., 72 or 84 months) lower your monthly payment but increase the total interest paid over the life of the loan.
- APR (Annual Percentage Rate): Your credit score largely dictates this. A lower score often results in a higher rate, which can add thousands to the total cost of the car.
- Down Payment: Money paid upfront reduces the principal loan amount directly, lowering both monthly payments and total interest.
Formula Used
We use the standard amortization formula to determine your monthly payment:
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]
- M = Total monthly payment
- P = Principal loan amount (Price + Tax – Down Payment – Trade-In)
- i = Monthly interest rate (APR / 12)
- n = Number of months