Car Payment Calculator — Auto Loan with Trade-In & Tax
Monthly car payment from price, sales tax, fees, down payment and trade-in (including negative equity rolled in), total interest, every term side by side, a negative-equity warning — or the price you can afford for a payment.
| Amount financed | — |
|---|---|
| Total interest | — |
| Total cost of the car | — |
| Same loan over other terms | — |
| Negative equity risk | — |
| Income guideline (20/4/10) | — |
In short
Amount financed = price + sales tax + fees − down payment − trade-in equity (negative equity on the trade-in is added). A 32,000 car with 7% tax, 600 fees, 3,000 down and 1,500 of negative equity finances 33,340, costing 674 a month over 60 months at 7.9% APR with 7,125 interest; 72 months lowers the payment to 583 but raises interest to 8,630.
Who this is for: Car buyers estimating a monthly payment or the price they can afford, including trade-ins and tax.
What goes into a car payment
- Amount financed = price + sales tax + fees − cash down − trade-in equity. If you owe more on the trade-in than it is worth, the difference is rolled into the new loan — paying interest on a car you no longer have.
- Term: each extra year cuts the payment but adds interest; the terms row shows the same loan at 36–84 months.
- Negative equity: cars lose roughly 20% in year one and 10–15% a year after; with little down and a long term the loan balance stays above the car's value for years, which is a problem if the car is written off or you need to sell.
- 20/4/10 rule of thumb: 20% down, no more than 4 years, total car costs (payment + insurance) under 10% of gross income.
- Budget mode works backwards: the price you can afford for a given payment, after down payment, trade-in, tax and fees.
Assumptions
- Amount financed = price × (1 + tax) + fees − down − (trade-in − amount owed on it); negative equity is added to the loan.
- Payment from the amortising formula; budget mode solves price from the present value of the payment.
- Negative-equity check uses an illustrative depreciation curve (20% year 1, then 10–12% a year).
Worked example
Negative equity of 1,500 is rolled in, so the amount financed is 32,000 + 2,240 tax + 600 fees − 3,000 + 1,500 = 33,340; payment 674 a month, total interest about 7,125. Over 72 months the payment would be 583 but interest 8,630. With only 3,000 down the loan is above typical resale value from year 1.
Frequently asked questions
How much car can I afford on 500 a month?
At 7.9% over 60 months, about 24,700 financed — add your down payment and trade-in equity, subtract tax and fees, for the sticker price. Use budget mode for your own figures.
Is 0% financing better than a cash rebate?
Usually only if the rebate is small; a 2,000 rebate with a 6% bank loan often beats 0% on a 5-year loan. Run both through the APR calculator.
What is a good APR for a car loan?
It depends on credit and market rates — in 2026, strong-credit new-car rates are typically mid-single digits; used-car and weaker-credit rates run several points higher.
Does this work for UAE or UK car finance?
Yes — set tax to 0 (VAT is in the price), enter the APR from the quote, and for UK PCP treat the balloon with the lease-vs-buy calculator.
Should I roll negative equity into a new car loan?
Avoid it if you can — you pay interest on a car you no longer own and start the new loan underwater; pay down the old loan or keep the car longer instead.
What is a good car loan term?
48–60 months for most buyers; 72–84 months lowers the payment but raises interest and keeps you in negative equity for years.
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