Auto loan calculator
Updated Updated for 2026 tax law
Estimate your car payment with your state's sales tax, trade-in value and payoff, rebates and dealer fees — plus the out-the-door price and how much you'll pay in interest.
- Amount financed$33,988
- Interest$6,392
- Vehicle price
- $35,000
- + Sales tax
- $2,188
- + Fees
- $800
- Out-the-door price
- $37,988
- − Cash down
- $4,000
- Amount financed
- $33,988
Tax uses the state rate only; many cities and counties add local tax. Rules for trade-ins, rebates and fees vary — check your buyer's order.
Amortization schedule (60 payments)
| Year | Ends | Paid | Principal | Interest | Balance |
|---|---|---|---|---|---|
| 1 | Nov 2027 | $8,075.88 | $5,883.13 | $2,192.75 | $28,104.37 |
| 2 | Nov 2028 | $8,075.88 | $6,308.42 | $1,767.46 | $21,795.95 |
| 3 | Nov 2029 | $8,075.88 | $6,764.46 | $1,311.42 | $15,031.49 |
| 4 | Nov 2030 | $8,075.88 | $7,253.45 | $822.43 | $7,778.04 |
| 5 | Nov 2031 | $8,076.09 | $7,778.04 | $298.05 | $0.00 |
How to use the auto loan calculator
- Enter the negotiated vehicle price, your APR and your cash down payment.
- Pick the loan term — 60 months is common; 72 and 84 months lower the payment but cost more.
- Add your trade-in value and what you still owe on it, plus any cash rebate.
- Choose your state to fill in the vehicle sales tax (add your local rate if your city or county charges one), and enter title, registration and dealer fees.
- Decide whether to roll tax and fees into the loan or pay them at signing.
How the amount financed is calculated
Sales tax = taxable price × tax rate
Amount financed = price − rebate − down payment − (trade-in − amount owed) + tax + fees
Example: a $35,000 car, $8,000 trade-in, $4,000 down, Texas 6.25% tax and $800 of fees. Tax is 6.25% of $27,000 = $1,687.50. Amount financed = 35,000 − 4,000 − 8,000 + $1,687.50 + 800 = $25,487.50. At 7% for 60 months the payment is $504.68 and total interest is $4,793.
Vehicle sales tax by state
State-level rate the calculator starts with. Many cities and counties add local tax, and a few states use a title or excise tax instead of sales tax.
| State | Rate | Trade-in credit | Notes |
|---|---|---|---|
| Alabama | 4% | Yes | |
| Alaska | 0% | Yes | Alaska has no state sales tax; some cities add a local tax. |
| Arizona | 5.6% | Yes | |
| Arkansas | 6.5% | Yes | |
| California | 7.25% | No | |
| Colorado | 2.9% | Yes | |
| Connecticut | 6.35% | Yes | |
| Delaware | 0% | Yes | Delaware has no sales tax but charges a motor vehicle document fee (a percentage of the price) at titling — add it under fees. |
| District of Columbia | 6% | Yes | |
| Florida | 6% | Yes | |
| Georgia | 7% | Yes | Georgia charges a one-time 7% title ad valorem tax (TAVT) on fair market value instead of sales tax. |
| Hawaii | 4% | No | |
| Idaho | 6% | Yes | |
| Illinois | 6.25% | Yes | |
| Indiana | 7% | Yes | |
| Iowa | 6% | Yes | |
| Kansas | 6.5% | Yes | |
| Kentucky | 6% | Yes | |
| Louisiana | 5% | Yes | |
| Maine | 5.5% | Yes | |
| Maryland | 6% | Yes | |
| Massachusetts | 6.25% | Yes | |
| Michigan | 6% | Limited | |
| Minnesota | 6.875% | Yes | |
| Mississippi | 7% | Yes | |
| Missouri | 4.225% | Yes | |
| Montana | 0% | Yes | Montana has no sales tax on vehicles (registration fees still apply). |
| Nebraska | 5.5% | Yes | |
| Nevada | 6.85% | Yes | |
| New Hampshire | 0% | Yes | New Hampshire has no sales tax on vehicles. |
| New Jersey | 6.625% | Yes | |
| New Mexico | 4% | Yes | New Mexico charges a 4% motor vehicle excise tax. |
| New York | 4% | Yes | |
| North Carolina | 3% | Yes | North Carolina charges a 3% highway use tax instead of sales tax. |
| North Dakota | 5% | Yes | |
| Ohio | 5.75% | Yes | |
| Oklahoma | 4.5% | Yes | Oklahoma charges a 3.25% excise tax plus 1.25% sales tax on vehicles. |
| Oregon | 0% | Yes | Oregon has no sales tax; a 0.5% vehicle privilege tax applies to new cars bought in-state — add it under fees. |
| Pennsylvania | 6% | Yes | |
| Rhode Island | 7% | Yes | |
| South Carolina | 5% (max $500) | Yes | South Carolina charges a 5% infrastructure maintenance fee, capped at $500. |
| South Dakota | 4.2% | Yes | |
| Tennessee | 7% | Yes | |
| Texas | 6.25% | Yes | |
| Utah | 6.1% | Yes | |
| Vermont | 6% | Yes | |
| Virginia | 4.15% | No | Virginia charges a 4.15% motor vehicle sales and use tax on the full price. |
| Washington | 6.5% | Yes | |
| West Virginia | 6% | Yes | |
| Wisconsin | 5% | Yes | |
| Wyoming | 4% | Yes |
Sources: Tax Foundation, State and Local Sales Tax Rates as of January 1, 2026; vehicle-specific taxes from state revenue and motor vehicle agencies. Rules change — confirm with your state DMV or the dealer's buyer's order.
Tips before you sign
- Get pre-approved by a bank or credit union first so you can compare the dealer's financing offer.
- Negotiate the price, trade-in value and financing separately; a low payment can hide a long term or a high rate.
- Ask for the out-the-door price in writing, with every fee itemized.
Disclaimer: Estimates for information only — not financial, lending or legal advice. Your lender's Loan Estimate and disclosures are the binding numbers. Tax rules for trade-ins, rebates, leases and fees vary by state; your dealer's buyer's order shows the exact figures.
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Frequently asked questions
How much is the payment on a $35,000 car?
With $4,000 down, an $8,000 trade-in, 6.25% sales tax, $800 of fees and 7% for 60 months, you'd finance $25,488 for $504.68 a month. With nothing down at 7% for 72 months, a $35,000 loan is $596.72 a month before tax.
Does a trade-in reduce sales tax?
In most states, yes — you pay sales tax only on the price minus your trade-in's value. California, Hawaii and Virginia tax the full price, and Michigan limits the credit. Turn the trade-in credit off in the calculator if it doesn't apply where you live.
What happens if I owe more than my trade-in is worth?
That negative equity is added to your new loan. You'll pay interest on it and start out owing more than the car is worth, which makes it harder to sell or trade later. Paying it down in cash or choosing a cheaper car limits the damage.
Is a 72- or 84-month car loan a bad idea?
It lowers the payment but costs more interest and keeps you upside-down longer. On a $30,000 loan at 7%, 84 months costs $2,391 more interest than 60 months, and longer loans often carry higher rates.
Are rebates taxed?
Usually. Most states charge sales tax on the price before a manufacturer rebate, so the rebate lowers what you finance but not your tax. Dealer discounts taken off the price do reduce the tax. Untick 'Tax is charged before the rebate' if your state taxes the price after the rebate.
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Estimates for information only — not tax, legal or financial advice.