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Auto loan

Price minus cash and trade-in, plus sales tax and fees, is what you actually finance. Pick your state for a typical combined rate.

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Principal vs interest

What the loan costs besides the car itself.

Balance over time

How fast the loan is gone at this term.

How U.S. auto loans are really calculated

Dealerships often quote a payment before tax. In most states you still owe sales tax on the vehicle. Many states tax the price minus trade-in; this calculator uses that common pattern. Oregon, New Hampshire, Delaware, and Montana have no statewide sales tax — pick those states and watch the tax line drop to zero (local fees can still exist).

A longer term lowers the monthly number and raises lifetime interest. Use the 36 / 48 / 60 / 72 chips to see that trade-off in the doughnut, not just the payment. Negative equity shows up faster on a long term if the car depreciates while you still owe tax and fees that were rolled in.

If you already know the payment you can live with, use car affordability to work backward to a price ceiling. This page is for when you have a vehicle price and need the monthly number. Neither page is a credit decision — dealers and banks use your credit file, not this form.

FAQ

Is tax financed?

Yes in this model, unless you pay tax in cash. Rolling tax into the loan is common at dealerships.

What about add-on products?

Gap, extended warranty, and paint protection are not included. Add them to price or fees if you will finance them.

Does trade-in reduce the amount financed?

Yes. Trade-in equity comes off the price before tax in this common pattern. If you still owe on the trade, tell the dealer — this page does not add a second loan.