Car loan calculator with trade-in

The calculator already has a $35,000 car with a $12,000 trade-in and $4,000 owed on it filled in. Change the values to match your trade-in.

Down payment
Down payment unit
Trade-in (optional)

If you owe less than the trade-in is worth, the difference works like a down payment. If you owe more, the difference is added to the new loan.

Sales tax and fees (optional)

Each state taxes a trade-in and fees in its own way, and some cities and counties add their own tax. Turn the switches to match your state and use the total rate from your dealer’s paperwork.

Monthly payment
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Enter the vehicle price and the APR to see your monthly payment.

Loan amount
price + sales tax + fees − down payment − trade-in equity
Payment
payment = loan × r ÷ (1 − (1 + r)^−n), with r = APR ÷ 12 and n = months
With your numbers
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An estimate, not a loan offer

This assumes a simple-interest loan with equal monthly payments, the first one a month after you sign. Your lender’s numbers can differ by a few cents or more, and they decide the APR, the fees, and how your state taxes the sale. It is not financial or tax advice.

For the steps of getting an auto loan and what is negotiable, see the Consumer Financial Protection Bureau, Auto loans guide (link verified on October 8, 2026; no figures are taken from it).

Step by step

How to use it

  1. Enter the vehicle price, the APR from your offer, and choose the loan term.
  2. Add your down payment in dollars or as a percent of the price.
  3. If you trade in a car, enter its value and what you still owe on it.
  4. Enter your sales tax rate and fees, and turn the switches to match how your state taxes the sale.
  5. Read the monthly payment, total interest, term comparison, and amortization schedule. Download the schedule as a CSV.
FAQ

Frequently asked questions

How do you calculate a car loan with a trade-in?

Subtract the trade-in credit and add what you still owe on it, then finance the rest. On a $35,000 car with a $12,000 trade-in, $4,000 owed, and $2,000 down, you finance $26,380 with 6% tax added.

What is negative equity?

It means you owe more on the trade-in than the dealer credits you for it. If you owe $16,000 on a $12,000 trade-in, the $4,000 difference is added to the new loan.

How a trade-in works in a car loan

The dealer credits you for your old car, and you pay off what you still owe on it. If the credit is larger than the payoff, the difference is equity, and it lowers the amount you finance like a down payment. If the payoff is larger, the difference is negative equity, and it is added to the new loan.

Three trade-ins on the same $35,000 car

You owe on the trade-inEquityAmount financedPayment at 7% for 60 monthsTotal interest
$4,000$8,000$26,380$522.36$4,961.29
$12,000$0$34,380$680.77$6,465.87
$16,000−$4,000$38,380$759.97$7,218.16

All three use a $12,000 trade-in credit, $2,000 down, 6% sales tax added to the loan, and a 7% APR over 60 months. Owing $16,000 instead of $4,000 raises the payment by $237.61 a month and the interest by $2,256.87.

Does a trade-in lower the sales tax?

In some states the trade-in credit comes off the price before tax, and in others it does not. In the first scenario, taxing the full price instead of the price minus the trade-in would raise the tax from $1,380 to $2,100 and the payment to $536.61. Use the switch in the calculator to match your state’s rule.

Before you roll negative equity into a new loan

Rolling $4,000 of negative equity into the new loan means you pay interest on a car you no longer own. Paying some of it in cash as part of your down payment keeps the new loan smaller.

These are estimates with example rates, not offers. Your APR depends on your credit, the lender, and the vehicle, so replace it with the rate on your own offer in the auto loan calculator.

Updated on October 8, 2026