How a car payment is calculated
The amount financed is the price plus tax and fees, minus the cash down payment and the trade-in value. That balance is then repaid like any installment loan: a fixed monthly payment set by the APR and the term. Longer terms lower the payment and raise the total interest; the yearly table shows how the balance falls, which matters if you may sell or trade the car before the loan ends.
Worked example (pre-filled). A $32,000 vehicle with a 7% tax ($2,240.00) and $500 of fees, less $3,000 down and a $5,000 trade-in, leaves $26,740.00 to finance. At 7.5% APR over 60 months the payment is $535.81, total interest is $5,408.94, and the car costs $40,148.94 all in.
Georgia tax on vehicles. Georgia does not charge sales tax on most vehicle purchases. Instead a one-time title ad valorem tax (TAVT) is due when the vehicle is titled; the Department of Revenue states that "the current TAVT rate is 7.0% of the fair market value of the vehicle" (Georgia DOR, TAVT calculator page, retrieved September 25, 2026). Fair market value is defined by the DOR and can differ from the price you pay, and there are reduced rates for some transfers, so use the DOR's own calculator for the exact figure and enter it here as a rate or by adjusting the price. The trade-in checkbox is there because tax bases differ by state and transaction; leave it unchecked to tax the full price. This page computes; it does not recommend a loan, lender, investment or tax position.
Formula and assumptions
amount financed = price + tax + fees − down payment − trade-in
payment = financed × r ÷ (1 − (1 + r)−n), r = APR ÷ 12
- A trade-in with a loan balance is not modelled; enter the net equity as the trade-in value.
- Fixed rate, simple monthly amortization, no add-on products or gap insurance.
Frequently asked questions
Does Georgia charge sales tax on cars?
Generally no. Georgia charges a one-time title ad valorem tax (TAVT) when a vehicle is titled. The Department of Revenue lists the current rate as 7.0% of fair market value.
What is the payment on a $25,000 car loan at 7.5% for 60 months?
About $500.95 a month, with roughly $5,057 of interest over the term.
Does a trade-in reduce the amount financed?
Yes. The trade-in value, like a cash down payment, is subtracted from the price plus tax and fees to get the amount financed.
Is a 72-month loan cheaper?
The payment is lower, but total interest is higher because the balance is outstanding longer. Enter both terms to compare.
Related calculators
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- Georgia sales tax calculator: Sales tax by Georgia county from the DOR rate chart (effective October 1, 2026)
- Georgia paycheck calculator: take-home pay after federal, FICA and Georgia tax
- Georgia income tax rate 2026
Sources
This calculator gives general estimates from the figures you enter. It is not tax, legal, payroll or financial advice. See our disclaimer.