Should I take dealer finance or a bank loan?

Compare the APR and the total repaid, not the monthly payment. Manufacturer-subsidised rates can beat banks, but only when they are not offset by a smaller discount on the price.

Does a trade-in reduce sales tax?

In some jurisdictions tax applies only to the difference after trade-in. This calculator taxes the full price, which is the more conservative assumption.

How much car can I afford?

A common guideline is keeping total vehicle costs, including insurance and fuel, under 15–20% of take-home pay.

Auto Loan Calculator

Car finance has moving parts a plain loan calculator misses: sales tax, a trade-in and a cash deposit all change the amount you actually borrow.

Fill in the fields above and select Calculate to see your result and the full working.

Please note: Financial calculators produce estimates using the figures you enter. They exclude fees, taxes, insurance and rate changes unless a field asks for them. They are not financial advice — confirm any significant decision with a qualified adviser or your lender.

Formula used

Amount financed = price + sales tax − deposit − trade-in, then the standard amortising payment formula

How to use this calculator

Enter the agreed vehicle price before tax.
Add any cash deposit and the value the dealer allowed for your trade-in.
Enter your local sales tax rate if it is added to the purchase.
Set the rate and term, then compare 48- and 72-month options.

Example calculation

A $28,000 car, $3,000 deposit, $5,000 trade-in, 7% sales tax, 7.5% over 60 months:

Tax = $1,960; financed = 28,000 + 1,960 − 3,000 − 5,000 = $21,960

Monthly payment = $440.06

Total interest ≈ $4,443.

What does this result mean?

Longer car loans lower the payment but increase the risk of negative equity — owing more than the car is worth — because vehicles depreciate fastest in the first three years. If a 72-month term is the only way to afford a car, that is usually a signal to look at a cheaper vehicle.

Frequently asked questions

Should I take dealer finance or a bank loan?: Compare the APR and the total repaid, not the monthly payment. Manufacturer-subsidised rates can beat banks, but only when they are not offset by a smaller discount on the price.
Does a trade-in reduce sales tax?: In some jurisdictions tax applies only to the difference after trade-in. This calculator taxes the full price, which is the more conservative assumption.
How much car can I afford?: A common guideline is keeping total vehicle costs, including insurance and fuel, under 15–20% of take-home pay.

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