CalculateY
Quick Answer
A $35,000 vehicle with 7% sales tax, $5,000 down, no trade-in, at 6% interest for 60 months has an estimated monthly payment of approximately $632. The estimated total cost including the down payment is approximately $42,940.
Common Examples
| Input | Result |
|---|---|
| $30,000, $3,000 down, 6% rate, 60 months, 7% tax | Estimated $564/month |
| $25,000, $5,000 down, 5% rate, 48 months, 6% tax | Estimated $496/month |
| $40,000, $8,000 down, 7% rate, 72 months, 8% tax | Estimated $577/month |
| $20,000, $0 down, 4.5% rate, 36 months, 5% tax | Estimated $624/month |
| $50,000, $10,000 down, 6.5% rate, 60 months, 6% tax | Estimated $787/month |
How It Works
This calculator uses the standard amortization formula to estimate fixed-rate auto loan payments, with sales tax added to the financed amount:
Sales Tax = Vehicle Price x Sales Tax Rate / 100
Loan Amount = Vehicle Price + Sales Tax - Down Payment - Trade-in Value
M = Loan Amount x [r(1 + r)^n] / [(1 + r)^n - 1]
Where:
- M = estimated monthly payment
- r = monthly interest rate (annual rate / 12 / 100)
- n = loan term in months
Derived Values:
- Estimated Total Paid = M x n (total of all monthly payments)
- Estimated Total Interest = Total Paid - Loan Amount
- Estimated Total Cost = Down Payment + Total Paid (full out-of-pocket cost)
For a 0% interest rate, the estimated monthly payment is simply the loan amount divided by the number of months.
Sales Tax Treatment
Sales tax practices vary by state. Some states tax the full vehicle price, while others tax only the difference after trade-in. This calculator applies sales tax to the vehicle price before subtracting the down payment and trade-in, which represents the more common method. Check your state’s rules for the exact calculation.
Down Payment vs. Trade-in
Both reduce the amount you need to finance. A down payment is cash you pay at the time of purchase. A trade-in value is the amount the dealer credits for your existing vehicle. The effect on the loan amount is the same, but trade-in tax treatment may differ by state.
Worked Example
For a $35,000 vehicle with 7% sales tax, $5,000 down, no trade-in, at 6% for 60 months: Sales tax = $35,000 x 0.07 = $2,450. Loan amount = $35,000 + $2,450 - $5,000 - $0 = $32,450. Monthly rate r = 0.06 / 12 = 0.005. Factor = (1.005)^60 = 1.3489. M = $32,450 x [0.005 x 1.3489] / [1.3489 - 1] = $32,450 x 0.006744 / 0.3489 = approximately $627 per month. Estimated total paid = $627 x 60 = $37,620. Estimated total interest = $37,620 - $32,450 = $5,170. Estimated total cost = $5,000 + $37,620 = $42,620.