Auto Loan Payment Calculator

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Auto Loan Payment Calculator
Calculate Monthly Payment
Results:
Estimated Monthly Payment$
Loan Amount: $
Total Interest: $
Total Cost of Loan: $
function calculateResult(){var price=parseFloat(document.getElementById('input1').value);var down=parseFloat(document.getElementById('input2').value)||0;var apr=parseFloat(document.getElementById('input3').value);var term=parseFloat(document.getElementById('input4').value);if(isNaN(price)||isNaN(apr)||isNaN(term)||price<=0||term<=0){alert('Please enter valid positive numbers for price, interest rate, and term.');return;}var loanAmt=price-down;if(loanAmt<=0){alert('Down payment cannot be greater than or equal to the vehicle price.');return;}var monthlyRate=apr/100/12;var monthlyPayment=0;if(apr===0){monthlyPayment=loanAmt/term;}else{monthlyPayment=loanAmt*(monthlyRate*Math.pow(1+monthlyRate,term))/(Math.pow(1+monthlyRate,term)-1);}var totalCost=monthlyPayment*term;var totalInterest=totalCost-loanAmt;document.getElementById('monthlyPayment').innerHTML=monthlyPayment.toLocaleString(undefined,{minimumFractionDigits:2,maximumFractionDigits:2});document.getElementById('loanAmt').innerHTML=loanAmt.toLocaleString(undefined,{minimumFractionDigits:2,maximumFractionDigits:2});document.getElementById('totalInt').innerHTML=totalInterest.toLocaleString(undefined,{minimumFractionDigits:2,maximumFractionDigits:2});document.getElementById('totalCost').innerHTML=totalCost.toLocaleString(undefined,{minimumFractionDigits:2,maximumFractionDigits:2});document.getElementById('answer').style.display='block';}

How to Use the Auto Loan Payment Calculator

Choosing the right vehicle is only half the battle; finding a payment plan that fits your budget is the other. This auto loan payment calculator helps you estimate what your monthly obligation will be based on the purchase price, your down payment, the interest rate, and the length of the loan.

By adjusting these variables, you can see how a larger down payment or a longer term affects your monthly cash flow and the total interest you will pay over the life of the car loan.

Vehicle Price
The total sticker price of the car including options, but before taxes and fees.
Down Payment / Trade-In
The cash amount you are paying upfront plus the value a dealer gives you for your current vehicle.
Interest Rate (APR)
The annual percentage rate charged by the lender. This is heavily influenced by your credit score.
Loan Term
The number of months you have to pay back the loan (commonly 36, 48, 60, or 72 months).

How Auto Loan Calculations Work

Most auto loans are amortized, meaning you pay a fixed amount every month. In the beginning, a larger portion of your payment goes toward interest, while toward the end of the term, more goes toward the principal. The standard formula for calculating a monthly payment is:

M = P [ r(1 + r)^n ] / [ (1 + r)^n – 1 ]

  • M: Total Monthly Payment
  • P: Principal Loan Amount (Price – Down Payment)
  • r: Monthly Interest Rate (Annual Rate / 12)
  • n: Total Number of Months

Calculation Example

Example: You want to buy a SUV for $45,000. You have a trade-in worth $10,000 and have been offered a 6.0% interest rate for 60 months.

Step-by-step solution:

  1. Calculate Loan Principal: $45,000 – $10,000 = $35,000.
  2. Convert APR to Monthly Rate: 6.0% / 100 / 12 = 0.005.
  3. Determine Number of Periods: 60 months.
  4. Plug into Formula: $35,000 * [0.005(1.005)^60] / [(1.005)^60 – 1].
  5. Result: Your monthly payment would be $676.64.

Frequently Asked Questions

Does a longer loan term save me money?

No. While a longer term (like 72 or 84 months) reduces your monthly payment, you will pay significantly more in total interest over the life of the loan. It also increases the risk of being "upside down," where you owe more than the car is worth.

How does my credit score affect my payment?

Lenders use your credit score to determine your interest rate. Borrowers with "Excellent" credit scores (750+) often receive rates several percentage points lower than those with "Fair" or "Poor" credit, which can save thousands of dollars in interest.

Should I put money down on a car loan?

Generally, yes. A down payment of at least 20% is recommended for new cars to offset immediate depreciation. A higher down payment reduces the loan-to-value ratio, which might help you qualify for a better interest rate and lower monthly payments.

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