Auto loan calculator with trade-in, tax and fees
The sticker price is not the amount you finance. Tax and fees push it up, your trade-in pulls it down, and anything still owed on that trade-in gets added straight back on. This shows the number the loan is actually written for.
Auto loan calculator
Payment schedule
How the amount financed is built
Start with the price. Add sales tax and fees. Subtract cash down and the trade-in allowance. Then add back whatever you still owe on the trade, because that debt does not vanish - it moves onto the new loan.
Many states charge sales tax on the price after the trade-in allowance rather than the full price, which can be worth several hundred dollars. This taxes the full price, so treat it as the conservative figure and check your own state's rule.
Watch the term, not the payment
A dealer can hit almost any monthly payment you name by stretching the term. An 84-month loan makes an expensive car look affordable while costing far more in interest and keeping you underwater - owing more than the car is worth - for years. Cars depreciate fastest early, so a long term with a small deposit is how people end up rolling negative equity into the next purchase.
Negative equity
If you owe more on the trade than it is worth, the difference is financed on the new car. You are then borrowing against a vehicle you no longer own, on top of the one you just bought. It is the most expensive habit in car buying.
Guides that explain this
Written with the same engine, so every figure agrees with the calculator.
Negative equity, and how people stay trapped in itHow buyers end up owing more than the car is worth, what rolling that shortfall into the next loan really costs, and how to get out of an upside-down car loan.9 min read
How your credit score sets your interest rateWhat a credit score is built from, how score bands translate into real rate differences and dollars, and which actions move a score quickly versus slowly.10 min read
APR vs interest rate: what actually separates themWhat separates APR from the interest rate, which fees are included, and why APR quietly flatters a loan you will not keep for its full term.8 min read
Questions people actually ask
Is sales tax charged before or after my trade-in?
It depends on the state. Many tax the price after deducting the trade-in allowance, which reduces the bill; others tax the full price. This calculator taxes the full price, so it errs on the high side.
What happens if I owe more than my trade-in is worth?
The shortfall is normally added to the new loan. You then pay interest on a debt from a car you no longer have, on top of the new car's finance. Rolling that forward repeatedly is how buyers end up permanently underwater.
Is a 72 or 84 month car loan a bad idea?
It lowers the payment and raises the total cost, and because cars depreciate quickly you spend a long stretch owing more than the vehicle is worth. If a long term is the only way the payment works, the car is probably too expensive.
Does a bigger down payment always help?
It reduces the amount financed, the interest and the risk of negative equity. The exception is if it leaves you without an emergency fund, since a car is a poor reason to have no cash buffer.
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