Used Auto Loan Calculator with Tax

How to Use This Calculator

Using our used auto loan calculator with tax is simple:

1. Enter the purchase price of the used vehicle in the "Vehicle Price" field.
2. Input your down payment amount in the "Down Payment" field.
3. Enter the loan term in years in the "Loan Term" field.
4. Provide the annual interest rate in the "Interest Rate" field.
5. Enter your sales tax rate in the "Sales Tax Rate" field.
6. Click the "Calculate" button to see your estimated monthly payment.

The calculator will display your estimated monthly payment, total interest paid, and the total amount paid over the life of the loan.

Formula Used

The calculator uses the standard auto loan payment formula:

Sales tax is calculated as: Sales Tax = (Vehicle Price - Down Payment) × (Sales Tax Rate / 100)

Worked Example

Let's calculate a monthly payment for a $15,000 used car with a $2,000 down payment, 4.5% interest rate, 5-year term, and 7% sales tax.

1. Calculate sales tax: ($15,000 - $2,000) × 0.07 = $980
2. Principal loan amount: $15,000 - $2,000 + $980 = $13,980
3. Monthly interest rate: 4.5% / 12 = 0.00375
4. Number of payments: 5 × 12 = 60
5. Monthly payment: $13,980 × (0.00375(1 + 0.00375)^60) / ((1 + 0.00375)^60 - 1) ≈ $262.45

Your estimated monthly payment would be $262.45.