Is an Auto Loan or Home Equity Loan best for purchasing a car?

This calculator helps determine if a home equity loan may be better than standard automobile financing for purchasing a car. Home equity loans often have lower interest rates than auto loans and the interest may be tax deductible.

Auto Loan Information

MonthsYears

Home Equity Loan Information


A home equity loan will save you $2,041.53 over the life of the loan.

Loan Payment Information

Auto Loan

Home Equity Loan

Monthly payments

$542.69

$522.37

Total payments

$26,049.01

$25,073.65

Tax savings

$0.00

$1,066.17

Tax adjusted total savings

$2,041.53


Calculator tips

This calculator uses monthly compounding and monthly payment frequency.

Currently:

  • Some states do not tax the sales of automobiles.
    If you purchase a vehicle in one of these states, enter 0% for the sales tax rate.
  • Some states do not allow deductions for trade-ins when calculating sales tax.
    If you purchase a vehicle in one of these states, be sure to check the box under Auto Loan Information.

Calculator disclaimer

The information provided by these calculators is intended for illustrative purposes only and is not intended to purport actual user-defined parameters. The default figures shown are hypothetical and may not be applicable to your individual situation. Be sure to consult a financial professional prior to relying on the results.

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