How does trade-in value affect my car loan?

Trading in an old vehicle reduces the amount of money you need to borrow for your new car. This lowers your total loan principal, which decreases your monthly payments and the total interest paid over the life of the loan.

How is sales tax calculated on a vehicle loan?

Sales tax is calculated as a percentage of the vehicle purchase price. Depending on state law, sales tax is often added to the loan amount (capitalized) or paid upfront as part of your drive-off fees.

What is a typical auto loan term length?

Typical car loan terms range from 36 to 84 months, with 60 and 72 months being the most common. Longer terms lower your monthly payment but increase the total interest you will pay overall.

Auto Loan Calculator

Calculate single car loan monthly payments, solve for vehicle price affordability targets, or stress test interest rates.

Live

Parameters

R Reset

Presets

Scenario Mode

Calculator Mode

Goal to Calculate

Annual Gross Income ($)Your total gross annual income before taxes.

$95,000.00

$1,000.00$10,000,000.00

Vehicle Price ($)Purchase price of the vehicle before tax and fees.

$35,000.00

$1,000.00$1,000,000.00

Trade-in Value ($)Value of your trade-in vehicle or down payment.

$2,000.00

$0.00$500,000.00

Sales Tax (%)Applicable state/local sales tax rate on the purchase.

7.0%

0.0%25.0%

Interest Rate (%)Annual Percentage Rate (APR). US average 30yr mortgage: ~7%.

6.00%

0.10%40.00%

Loan Term (Months)

60 Years

12 Years96 Years

years

Analytics Dashboard

Est. Monthly Payment

$588.68Projected · 99%

Excellent

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Monthly Gross Income$7,916.00

Auto Payment Ratio7.40%

Loan Amount (Principal)$30,450.00

Scenario Analysis Projections

Scenario	Profile	Est. Monthly Payment
Base Settings	Default inputs and growth assumptions	$588.68
Conservative	Lower yield, higher inflation, haircuts	$685.20
Optimistic	Favorable yield, lower inflation, growth	$539.29
Stress Test	Severe economic crash and high inflation	$845.90

Educational estimate. Not financial advice.

InterpretationCar payment is under 10% of gross salary, leaving comfortable cash flow.

Loading Planning Workspace…

How to Use the Auto Loan Calculator

Planning to buy a new or used vehicle? Use our free auto loan calculator to estimate your monthly car payment, total interest expenses, and overall purchase costs. You can enter the vehicle price, down payment, trade-in details, state sales tax, and interest rate to customize your financing options.

Input variables:

Scenario Mode: Bounded parameter in the mathematical model.
Calculator Mode: Bounded parameter in the mathematical model.
Goal to Calculate: Bounded parameter in the mathematical model.
Target Monthly Payment Budget ($): Bounded parameter in the mathematical model.
Vehicle Price ($): Bounded parameter in the mathematical model.
Down Payment ($): Bounded parameter in the mathematical model.
Trade-in Value ($): Bounded parameter in the mathematical model.
Sales Tax (%): Bounded parameter in the mathematical model.
Interest Rate (%): Bounded parameter in the mathematical model.
Annual Gross Income ($): Bounded parameter in the mathematical model.
Loan Term (Months): Bounded parameter in the mathematical model.
Extra Monthly Payment ($): Bounded parameter in the mathematical model.
Debts List: Bounded parameter in the mathematical model.
Extra Monthly Payment Budget ($): Bounded parameter in the mathematical model.

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