Car Loan Calculator

Calculate your monthly car payment with options for trade-in value, down payment, and sales tax. Get a complete picture of your auto loan costs.

Loan Amount = (Car Price + Sales Tax) - Down Payment - Trade-in; M = Loan x [r(1 + r)^n] / [(1 + r)^n - 1]
$35,000 car, 7% tax, $7,000 down, $5,000 trade-in, 5.5% APR, 5 years: Monthly = $461, Total paid = $27,682, Total cost = $39,682

Should I trade in my car or sell it privately?

Private sale typically gets you $1,000-3,000 more than trade-in, but requires more effort (listing, showing, paperwork). Trade-in is convenient and may reduce sales tax in some states (tax only on difference). If you owe money on current car, trade-in is simpler. Run the numbers - extra effort of private sale often worth it.

How does sales tax affect my car loan?

Most states require paying sales tax on car purchases (0-10%+). This is often rolled into the loan, increasing your financed amount and interest paid. Some states tax only the difference after trade-in (saves money). Calculate total cost including tax before committing. Never forget tax when budgeting for a car.

What is the 20/4/10 rule for car buying?

Financial rule: 20% down payment, finance for no more than 4 years, total car expenses (payment + insurance + gas + maintenance) should be under 10% of gross income. Following this helps avoid financial strain. If you can't meet these guidelines, consider a less expensive vehicle.

Is 0% financing really a good deal?

0% APR sounds great but often requires excellent credit and sacrificing cash rebates/incentives. Example: 0% financing vs $3,000 rebate at 5% - rebate is often better. Also, 0% deals may require shorter terms or specific models. Calculate both scenarios. Sometimes cash back + independent financing beats 0% dealer financing.