Car Loan Calculator with Trade In
Lower your loan with a trade-in value.
Trade-in math stays on your device — no forms, no sign-upYour payment breakdown appears here
Fill in the loan details and press Calculate — the monthly payment, total interest and schedule will render right on this page, with nothing sent to any server.
How to use
A trade-in turns your current car into cash you do not hand over — the dealer applies its value against the new purchase. That value directly shrinks the financed amount, which is why this calculator exists: to see how much your trade saves on the monthly payment before you walk into the dealership.
How to use
- Enter the price of the car you want, including any fees you plan to finance.
- Add your cash down payment and the trade-in value the dealer quoted.
- Set the APR and the term in years.
- Press Calculate. The loan amount is price minus down payment minus trade-in.
Example
Take a $28,000 car, $2,000 cash down and a $6,000 trade-in. The financed amount becomes $20,000. At 5.9% for 5 years the payment is about $386 — versus $471 without the trade. Over 60 months the trade-in saves roughly $5,100 in payments and interest combined. Every dollar of trade value is a dollar you never borrow.
Formula
Loan = price − down payment − trade-in value, then the standard PMT formula runs on that smaller principal.
Adding a down payment on top
Down payment and trade-in stack. On the example above, bumping cash down from $2,000 to $5,000 cuts the loan to $17,000 and the payment to about $328. If your trade-in plus down payment covers the whole price, no loan is needed at all.
Getting a fair trade-in number
Check current private-party values for your car before visiting the dealer. The trade-in quote can vary by thousands, and every $1,000 of trade value at 5.9% for 5 years changes the payment by roughly $19.
FAQ
Does trade-in really lower my payment?
Yes — every dollar of trade-in is a dollar you do not borrow, so both the payment and the total interest drop.
What if trade-in exceeds the price?
Then no loan is needed; the dealer owes you the difference after the down payment.
Should I trade in or sell privately?
Private sale usually nets more money but takes time and effort; trade-in is instant and often tax-advantaged in some states.
Can I combine a down payment and a trade-in?
Yes, they stack. The page above shows the combined effect on the payment.
Does the trade-in affect sales tax?
In many states you only pay sales tax on the net price after trade-in. See the trade-in with taxes tool for that case.
Reviewed by the LoanMath editorial team