Auto Loan Calculator
Calculate car loan payments, total interest costs, and compare financing options. Factor in trade-in value, down payment, and taxes to get accurate monthly payment estimates.
Vehicle & Loan Details
Loan Breakdown
Cost Breakdown
Payment Schedule Preview
Payment # | Date | Payment | Principal | Interest | Balance |
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Complete Auto Loan Guide
How to Use This Auto Loan Calculator
Our comprehensive auto loan calculator helps you understand the true cost of financing a vehicle purchase. Whether you're buying new or used, this tool factors in all aspects of auto financing including trade-ins, down payments, taxes, and fees to give you accurate monthly payment estimates and total cost projections.
Step-by-Step Usage Instructions:
- Enter Vehicle Price: Input the total price of the vehicle you're considering. This should be the negotiated price or MSRP, not including taxes and fees which are calculated separately.
- Set Down Payment: Enter the amount you plan to pay upfront. A larger down payment reduces your loan amount and monthly payments while potentially qualifying you for better interest rates.
- Add Trade-in Value: If you're trading in your current vehicle, enter its estimated value. This amount will be subtracted from your total cost, reducing the loan amount needed.
- Configure Tax Rate: Enter your local sales tax rate. This varies by state and locality, typically ranging from 0% to 10% or more in some areas.
- Set Interest Rate: Input the APR offered by your lender. Shop around with multiple lenders, as rates can vary significantly based on your credit score and the lender's terms.
- Choose Loan Term: Select the length of your loan. Shorter terms mean higher monthly payments but less total interest, while longer terms reduce monthly payments but increase total cost.
- Include Additional Fees: Add any documentation fees, registration costs, extended warranties, or other add-ons that will be financed with the loan.
Understanding Your Input Fields:
Vehicle Price
The negotiated purchase price of the vehicle before taxes and fees. This is your starting point for all calculations and should reflect any dealer discounts or rebates already applied.
Down Payment
Cash paid upfront that reduces your loan amount. Generally, 10-20% down is recommended for new cars and 10% for used cars to avoid being underwater on the loan.
Trade-in Value
The amount your current vehicle is worth toward the purchase. Research your car's value using KBB, Edmunds, or similar services to ensure you're getting a fair trade-in offer.
Sales Tax
Local tax rate applied to vehicle purchases. Some states tax the full purchase price, while others allow trade-in value to reduce the taxable amount.
Auto Loan Calculation Methodology:
Our calculator uses the standard auto loan amortization formula, accounting for all costs associated with vehicle financing:
Monthly Payment = P × [r(1+r)^n] / [(1+r)^n - 1]
Where P = Amount Financed, r = Monthly interest rate, n = Number of payments
This comprehensive approach ensures you see the true monthly payment and total cost of your auto loan, including all taxes, fees, and financing charges.
Practical Auto Loan Examples:
New Car Purchase
$35,000 vehicle, $5,000 down
6.5% APR, 60 months
Monthly Payment: ~$587
Total Interest: ~$5,220
Used Car Purchase
$20,000 vehicle, $3,000 down
8.5% APR, 48 months
Monthly Payment: ~$420
Total Interest: ~$3,160
With Trade-in
$30,000 vehicle, $8,000 trade
5.9% APR, 60 months
Monthly Payment: ~$425
Total Interest: ~$3,500
Interpreting Your Auto Loan Results:
- Monthly Payment: Your fixed monthly obligation. Ensure this fits comfortably in your budget, typically no more than 10-15% of your monthly income for transportation costs.
- Total Interest: The cost of borrowing over the loan's lifetime. Compare this across different loan terms and lenders to find the most cost-effective option.
- Amount Financed: The actual loan amount after accounting for down payment and trade-in. This determines your monthly payment and total interest costs.
- Total Cost: The complete cost of vehicle ownership including the purchase price, financing costs, taxes, and fees.
When to Use This Auto Loan Calculator:
Before Car Shopping
Determine your budget and understand what monthly payment you can afford. This helps you focus on vehicles within your price range and avoid overspending.
Comparing Financing Options
Evaluate offers from dealers, banks, and credit unions. Compare different loan terms and interest rates to find the best financing deal.
Trade-in vs. Private Sale
Compare the convenience of trading in your current vehicle versus selling it privately for potentially more money.
Lease vs. Buy Analysis
Compare the total cost of financing a purchase versus leasing to determine which option better fits your needs and budget.
Information to Gather Before Auto Shopping:
Financial Information
- Monthly income and budget for car payments
- Current credit score and credit report
- Available down payment amount
- Current vehicle's trade-in value
- Insurance costs for the new vehicle
Vehicle Research
- Vehicle prices from multiple dealers
- Financing rates from banks and credit unions
- Vehicle reliability and resale value data
- Insurance quotes for specific models
- Total cost of ownership estimates
Auto Financing Tips and Best Practices:
Shop Around
Get pre-approved from multiple lenders before visiting dealers. This gives you negotiating power and ensures you get the best rate.
Maximize Down Payment
Put down at least 10-20% to reduce monthly payments, qualify for better rates, and avoid being underwater on your loan.
Choose Wisely
Balance monthly payment affordability with total cost. Shorter terms save money but increase monthly payments.
Auto Loan Tips
Secure financing before shopping to know your budget and negotiate from a position of strength.
Look beyond monthly payments to understand the true cost including interest, insurance, and maintenance.
Know your current vehicle's worth using KBB, Edmunds, or similar services before negotiating.
Loans longer than 60 months often result in being underwater and paying excessive interest.