Car Loan Calculator

How it works

Sales tax is calculated on the vehicle price minus your trade-in value — not minus your cash down payment — since that's how most U.S. states apply trade-in tax credits; that tax is then folded into the amount financed along with price minus down payment minus trade-in, and the monthly payment uses the standard amortization formula on the resulting loan balance, APR, and term.

FAQ

Why does my trade-in reduce the sales tax, not just the loan amount?

Because most U.S. states only tax the difference between the vehicle price and your trade-in credit — this calculator applies that same trade-in tax credit before computing the loan amount, matching how dealerships in those states actually price the deal.

Does the down payment also reduce the sales tax owed?

No — only the trade-in value reduces the taxable amount here, since that mirrors most state tax rules; cash down payments are typically taxed the same as the rest of the vehicle price.