Auto Loan Calculator
Calculate monthly auto loan payments, total interest, and total cost for your vehicle purchase
About This Calculator
The Auto Loan Calculator helps you estimate monthly car loan payments, total interest, and total financing costs. This tool is essential when shopping for a vehicle to understand the true cost of your auto loan, including the impact of down payments and trade-in values.
How It Works
- 1
Enter the total vehicle price (the amount you are financing).
- 2
Input your down payment amount to reduce the loan principal.
- 3
Enter your trade-in value if you are trading in a vehicle.
- 4
Provide the annual interest rate and loan term.
- 5
The calculator computes your monthly payment, total interest, and total cost of the loan.
Formula Explanation
Loan Amount = Vehicle Price - Down Payment - Trade-in ValueThe principal loan amount is calculated by subtracting your down payment and trade-in value from the vehicle price.
M = P × [r(1+r)^n] / [(1+r)^n - 1]Where M is the monthly payment, P is the loan principal, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of payments (years × 12).
Tips
A larger down payment reduces your monthly payment and total interest.
Consider the total cost of ownership, not just the monthly payment.
Shorter loan terms save money on interest but increase monthly payments.
Shop around for the best interest rates - rates can vary significantly between lenders.
Factor in sales tax, registration, and other fees separately.
Common Uses
Vehicle Shopping
Calculate monthly payments for different vehicles to find one that fits your budget.
Down Payment Planning
Determine how much down payment you need to achieve your target monthly payment.
Trade-in Evaluation
See how your trade-in value affects your new car loan payments.
Loan Term Comparison
Compare different loan terms to find the best balance between monthly payment and total cost.