The amount financed is the vehicle price plus entered tax and fees, minus the down payment and trade-in. Rules for taxable price and trade-in credits vary by state.
Build the amount financed
Start with the negotiated vehicle price, not only the sticker price. Add taxes and required fees, then subtract cash down and trade-in value.
A trade-in can affect sales tax differently from state to state. This calculator uses the full vehicle price as the taxable base so the assumption remains visible.
- Ask for an itemized out-the-door price.
- Value the trade-in separately from the new vehicle negotiation.
- Compare the same term and amount across lenders.
Why the loan term matters
A longer term can reduce the monthly payment but usually increases total interest and may leave the loan balance above the vehicle's market value for longer.
Compare 48-, 60-, and 72-month scenarios while keeping price and rate unchanged. The lower payment should be weighed against the higher total cost.
Important limits
The estimate excludes rebates, manufacturer incentives, optional warranties, credit insurance, negative equity from an old loan, and state-specific tax rules.
The rate you receive depends on lender terms and credit evaluation. This calculator is not a financing offer.
The formula used
Amount financed = price + tax + fees − down payment − trade-inThe amount financed is then amortized with the standard fixed-payment formula. Sales tax is applied to the full entered vehicle price in this simplified estimate.
Example: financing a $35,000 vehicle
A $35,000 vehicle with $5,000 down, a $2,000 trade-in, 6.5% sales tax, $800 in fees, and a five-year loan at 7% produces an estimated amount financed of $31,075 and a monthly payment near $615. State tax treatment and dealer fees can change the result.
Sources and further reading
We use primary educational sources to check terminology and explain how the calculation fits into real financial decisions.
Consumer Financial Protection Bureau — Auto loans↗Federal Trade Commission — Financing or leasing a car↗