Financial Guide

Auto Loan Calculator: Monthly Car Payment with Tax & Trade-In

Estimate your monthly car payment the way a dealer will: price, minus trade-in and down payment, plus sales tax and fees.

Auto Loan Calculator

Vehicle price ($)

Down payment ($)

Trade-in value ($)

Sales tax (%)

Title, registration & dealer fees ($)

Interest rate (% APR)

Loan term

Monthly payment

$662.25

Amount financed

$33,050

Sales tax

$2,450

Total interest

$6,685

Total cost (down + trade-in + payments)

$44,735

Year	Principal paid	Interest paid	Balance
Year 1	$5,660	$2,287	$27,390
Year 2	$6,100	$1,847	$21,290
Year 3	$6,573	$1,374	$14,717
Year 4	$7,083	$864	$7,633
Year 5	$7,633	$314	$0

Most states charge sales tax on the price after the trade-in credit; a few tax the full price. Check your state’s rule.

Updated October 2026 · Reviewed against our calculation methodology

How the Amount Financed Is Worked Out

Amount financed = Price − Trade-in − Down payment + Sales tax + Fees
Sales tax = (Price − Trade-in) × Tax rate (in most states)

Example: A $35,000 car, $5,000 down, 7% sales tax and $600 in fees means financing $33,050. At 7.5% APR for 60 months the payment is $662.25.

Loan Term vs Total Interest

Financing $30,000 at 7.5% APR:

Term	Monthly payment	Total interest
36 months	$933.19	$3,595
48 months	$725.37	$4,818
60 months	$601.14	$6,068
72 months	$518.70	$7,347
84 months	$460.15	$8,652

Stretching to 84 months lowers the payment but costs about 80% more interest than 48 months — and you may owe more than the car is worth for years.

Car Buying Tips

Follow 20/4/10: 20% down, a loan of 4 years or less, and total car costs under 10% of gross income.
Get pre-approved by a bank or credit union before visiting the dealer, so you can compare the dealer’s financing offer.
Negotiate the price, not the payment. A low monthly payment can hide a longer term or a higher price.
Watch negative equity. If you owe more on your trade-in than it is worth, the difference is added to the new loan.

Frequently Asked Questions

What is the payment on a $30,000 car loan?

At 7.5% APR it is about $601.14 a month for 60 months, or $518.70 for 72 months.

Is sales tax included in a car loan?

It can be. Many buyers roll sales tax and fees into the loan, as this calculator does, which means paying interest on them too.

Does a trade-in reduce sales tax?

In most states, yes — tax is charged on the price minus the trade-in value. A few states tax the full price.

What credit score do I need for a car loan?

Many lenders approve scores in the 600s, but the best rates usually go to scores above about 720.

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