Home Resources Useful Links Useful Links Financial Calculators October 1, 2021 CPAs & Advisors 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. All fields are required. Auto Loan InformationPurchase price (pre tax)Cash downLoan termterm in months or years Months YearsInterest rateFeesSales tax rateTrade allowanceAmount owed on trade Check here if your state does not allow deductions for trade-ins when calculating sales taxHome Equity Loan InformationInterest rateClosing costsFederal tax rateState tax rate Show payment schedule Show graph Calculator Results A home equity loan will save you $1,845.32 over the life of the loan. Loan Payment InformationAuto LoanHome Equity LoanMonthly payments$490.51$472.15Total payments$23,544.63$22,662.97Tax savings$0.00$963.66Tax adjusted total savings$1,845.32 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. Presented by TimeValue Software ©2025
