Auto Loan Calculator
How the Calculator Works
Enter your car price, down payment, trade-in value, loan term, and interest rate. The calculator determines your monthly payment and total amount financed.
It uses the same amortization formula as a mortgage, adjusted for shorter terms and often higher interest rates typical in auto loans.
You can also include sales tax and fees to get an accurate out-the-door payment estimate.
Formula & Explanation
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]
Where:
- M = monthly payment
- P = principal after down payment/trade-in
- i = monthly interest rate
- n = total months
Example: Car price $30,000, down $5,000, rate 7%, 60 months → monthly payment ≈ $495.
Example Calculation
Car price: $28,000
Down payment: $3,000
Trade-in value: $2,000
Loan term: 60 months
Interest rate: 6%
→ Principal = $23,000
→ Monthly payment ≈ $444
How to Use This Tool
- Enter vehicle price and down payment.
- Add trade-in value and loan term.
- Click "Calculate."
- View monthly payment, interest total, and payoff schedule.
- Adjust terms to compare different financing offers.
Features & Benefits
- Instant monthly car payment estimate
- Compare multiple loan terms
- Factor in down payment and trade-in
- Shows total interest and payoff date
- Perfect for car buyers and dealerships
FAQs
Q1: What credit score do I need for a car loan?
A1: Most lenders require 600+, but lower scores can still qualify with higher rates.
Q2: Can I add sales tax?
A2: Yes — include it in "Extra Fees" for a true total cost.
Q3: Is leasing better than buying?
A3: Try our Lease vs. Buy Calculator for a side-by-side comparison.