Does a trade-in reduce sales tax on a car purchase?

In most US states, yes. Buyers are generally taxed only on the difference between the new vehicle price and the trade-in value, though a few states do not offer this credit.

Can a loan calculator be used for a personal loan, not just a car?

Yes. Using the loan amount directly with a rate and term works for any fixed-rate installment loan, while the purchase price mode is specifically built for vehicle-style purchases with a trade-in and sales tax.

Loan Calculator — Auto & Personal Loan Payment

Q: What's a good interest rate for a car loan?

It depends on credit score, loan term, and whether the vehicle is new or used, since used-car and longer-term loans typically carry higher rates. Comparing offers from a bank, credit union, and dealer financing is more reliable than assuming a single average rate applies.

Calculate a loan payment

What do you know?

Loan amount ($)

Interest rate / APR (%)

Loan term (months)

Monthly payment
Loan amount financed
Sales tax
Out-the-door price
Total of payments
Total interest paid

How this is calculated

This uses the same fixed-rate amortization formula as a mortgage: it solves for the level monthly payment that pays off the financed amount over the loan term at a fixed rate, with equal principal and interest built into every payment. Auto and personal loans are normally quoted in months rather than years (36, 48, 60, 60, 72, 84 are common terms), so the term field here is in months.

Calculating from a purchase price

Switching to "a purchase price" mode estimates a realistic auto-loan structure: sales tax is applied to the price minus your trade-in credit (the way most US states calculate it — a cash down payment usually doesn't reduce the taxable amount), and the financed amount is the out-the-door price (price plus tax) minus your down payment and trade-in. Tax rates and rules vary by state, so treat the tax field as an estimate and confirm the exact rate for your location.

Frequently asked questions

What's a good interest rate for a car loan?

It depends heavily on credit score, loan term, and whether the vehicle is new or used — used-car and longer-term loans typically carry higher rates. Compare offers from your bank, credit union, and the dealer's financing rather than assuming any single "average" rate applies to your situation.

Is a longer loan term always worse?

A longer term lowers the monthly payment but increases total interest paid, since you're borrowing the money for more months. It also raises the risk of being "underwater" (owing more than the item is worth) for longer, which matters most for a depreciating asset like a vehicle.

Does a trade-in actually reduce sales tax?

In most US states, yes — you're generally only taxed on the difference between the new vehicle's price and your trade-in's value, not the full price. A few states don't offer this credit, so check your state's specific rule if the exact tax figure matters.

Can this calculator be used for a personal loan, not just a car?

Yes — use "the loan amount" mode with the amount, rate, and term for any fixed-rate installment loan (personal loan, boat, RV, or similar). The "purchase price" mode is specifically built for vehicle-style purchases with a trade-in and sales tax.