How it works
The amount you finance is the vehicle price, plus sales tax and fees, minus your cash down payment and trade-in value. If you still owe money on the trade-in, that payoff is added back.
Most US states charge sales tax only on the price after the trade-in credit, which can save hundreds of dollars. A few tax the full price; use the toggle to match your state.
Longer terms like 72 or 84 months lower the payment but cost more interest and make it more likely you will owe more than the car is worth.
Formula
Financed = price + tax + fees − down − trade-in + amount owed; M = F × r(1 + r)^n ÷ ((1 + r)^n − 1)
Questions people ask
How much should I put down on a car?
A common guideline is 20% on a new car and 10% on a used car. That reduces interest and helps you avoid owing more than the car is worth early on.
Is sales tax included in my car loan?
Often, yes. Dealers usually roll sales tax, title and registration into the amount financed unless you pay them in cash at signing.
What happens if I owe more than my trade-in is worth?
That negative equity is typically added to the new loan, which raises the amount financed and the monthly payment.