How does a vehicle trade-in affect sales tax on a car purchase?

In most US states, trade-in value reduces the taxable amount of the new vehicle purchase. For example, a $30,000 car with an $8,000 trade-in is only taxed on the $22,000 difference.

What is a typical down payment on a car loan?

Financial experts typically recommend putting 20% down on a new vehicle (or 10% on a used vehicle) to prevent becoming "upside-down" (owing more than the car is worth due to depreciation).

Is a 72-month or 84-month car loan a good idea?

Longer loan terms lower your monthly bill but dramatically increase the total interest paid over the life of the loan, and increase the risk of negative equity.

What fees should I include in dealer documentation fees?

Include destination charges, dealer prep fees, documentation ("doc") fees, and state title/registration fees, which typically total between $300 and $1,200.

Are my financial calculations saved or reported?

No. All calculations are executed privately inside your browser. No personal or credit data is gathered.

Auto Loan Calculator (Car Payment & Financing)

Calculate monthly car loan payments factoring in trade-in equity, sales tax, down payment, and fees.

100% free
Private in browser
No signup
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Vehicle Purchase Price ($)

Cash Down Payment ($)

Trade-in Vehicle Value ($)

Amount Owed on Trade-in ($)

Interest Rate (APR %)

Sales Tax Rate (%)

Dealer & Title Fees ($)

Loan Term Duration

Estimated Monthly Car Payment

$582.48/ month

Based on 60 monthly payments at 6.5% APR

Amount Financed

$29,770

Sales Tax

$2,170

Total Loan Interest

$5,179.05

Total Out-of-Pocket

$42,949.05

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About Auto Loan Calculator (Car Payment & Financing)

The Auto Loan Calculator gives car buyers a complete breakdown of vehicle financing costs before walking onto the dealership lot. By accounting for trade-in vehicle equity, state sales taxes, dealership documentation fees, down payments, and loan terms from 24 to 84 months, this calculator eliminates surprise dealer markups and lets you shop with confidence.

How to use Auto Loan Calculator (Car Payment & Financing)

Enter Vehicle Purchase Price: Input the sticker or negotiated price of the new or used car you are planning to purchase.
Add Trade-in & Down Payment: Enter cash down payment, trade-in allowance value, and any remaining lien owed on your current car.
Set Financing Terms: Specify your loan APR interest rate, duration in months (e.g. 48, 60, 72), and state sales tax rate.

Key features

Trade-in Equity Calculation: Automatically factors in positive or negative equity from existing vehicle trade-ins.
Sales Tax & Registration Fees: Accurately computes state sales tax and dealer processing fees into the total loan amount.
Comprehensive Term Durations: Compare 36, 48, 60, 72, and 84-month car financing options.
Total Cost of Ownership: Reveals true out-of-pocket costs including purchase price, total loan interest, taxes, and fees.

Frequently asked questions

How does a vehicle trade-in affect sales tax on a car purchase?: In most US states, trade-in value reduces the taxable amount of the new vehicle purchase. For example, a $30,000 car with an $8,000 trade-in is only taxed on the $22,000 difference.
What is a typical down payment on a car loan?: Financial experts typically recommend putting 20% down on a new vehicle (or 10% on a used vehicle) to prevent becoming "upside-down" (owing more than the car is worth due to depreciation).
Is a 72-month or 84-month car loan a good idea?: Longer loan terms lower your monthly bill but dramatically increase the total interest paid over the life of the loan, and increase the risk of negative equity.
What fees should I include in dealer documentation fees?: Include destination charges, dealer prep fees, documentation ("doc") fees, and state title/registration fees, which typically total between $300 and $1,200.
Are my financial calculations saved or reported?: No. All calculations are executed privately inside your browser. No personal or credit data is gathered.

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