Formula
Tax is a percent of the vehicle price. The financed amount is price plus tax, minus the down payment:
financed = price + price × tax − down payment
The payment is the standard fixed amortizing payment on that balance. A budget that solves for the price, and a note that adds fees instead of tax, are separate pages.
Assumptions
- Sales tax is calculated on the full price, before the down payment.
- The rate is a fixed annual percentage, compounded monthly.
- There is no balloon and no extra fee on this page.
Worked example
A $28,000 car with 6% sales tax and $3,000 down, at 6.5% for 60 months, has a payment of $522.02.
Input definitions
- Sales tax
- A percent you type. The page does not store a state or country rate.
- Amount financed
- Price plus that tax, minus the down payment.
Limitations
This is an estimate, not a loan offer, a lease quote, or tax advice. A lender can add fees, and sales-tax rules differ by place. The currency control changes the symbol only.
Questions
Why is tax on the full price?
This page taxes the vehicle price, then subtracts the down payment. A trade-in credit is not a field here.
Where do dealer fees go?
The auto loan page adds a fee and does not add sales tax. Use that page when the fee is the part being financed.