Does trade-in value reduce the auto loan payment?

Positive trade equity reduces the amount financed. If you owe more than the trade-in is worth, the negative equity can increase the new loan.

Does the calculator include sales tax?

Yes, it includes a sales tax field and estimates tax on vehicle price minus trade-in value. State rules can differ.

Why can the dealer payment differ?

Dealer fees, add-ons, exact taxes, registration, APR, lender rules, and Truth-in-Lending disclosures can change the final payment.

Is this a loan approval?

No. It is a planning estimate and does not check credit, income, collateral, or lender eligibility.

Auto Loan Calculator

Estimate a car loan payment with vehicle price, down payment, APR, term, trade-in value, sales tax, negative equity, and dealer fees.

Estimate an auto loan payment from the vehicle price, down payment, APR, term, trade-in equity, sales tax, and dealer fees.

Vehicle price ($)

Down payment ($)

APR (%/year)

Loan term (months)

Sales tax (%)

Trade-in value ($)

Amount owed on trade-in ($)

Dealer, title and registration fees ($)

Monthly take-home income ($)

Estimate only. Dealer add-ons, exact sales tax rules, registration costs, negative equity, APR, and Truth-in-Lending disclosures can change the final contract.

What an auto loan calculator should include

Auto loan search results in the U.S. focus on the car payment, amount financed, sales tax, trade-in value, negative equity, dealer fees, and total cost. This page adapts the original car-credit model to that intent.

Vehicle price, down payment, APR, and loan term.
Trade-in value and any amount still owed on the trade.
Sales tax estimate and dealer, title, or registration fees.
Amount financed, monthly payment, finance charge, and amortization schedule.

Estimate only

State tax rules, dealer add-ons, registration costs, negative equity, lender APR, and Truth-in-Lending disclosures can change the final contract.

Auto loan formulas

A m o u n t f inan ce d = P r i ce + T a x + F ees - D o w n p a y m e n t - T r a d e e q u i t y

Negative trade equity increases the amount financed.

M = P \cdot \frac{i ( 1 + i ) ^{n}}{( 1 + i ) ^{n} - 1}

M is monthly payment, P is amount financed, i is monthly APR, and n is months.

F inan ce c ha r g e = M \cdot n - P

Finance charge is the interest paid in this simplified fixed-rate schedule.

Trade-in and sales tax notes

Input	How the calculator treats it
Trade-in value	Reduces taxable price and amount financed in the estimate.
Amount owed	Reduces trade equity; negative equity is rolled into the new loan.
Sales tax	Estimated on vehicle price minus trade-in value.
Dealer fees	Added to the amount financed when entered.

Frequently Asked Questions

Sources and References

Calculations are based on the listed reference sources. Links open in a new tab.

Updated: June 2, 2026

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