| Financed Amount: | $'+loanAmount.toFixed(2)+' |
| Total Sales Tax: | $'+taxTotal.toFixed(2)+' |
| Total Interest: | $'+totalInterest.toFixed(2)+' |
| Total Cost: | $'+(totalPaid+down+trade).toFixed(2)+' |
How to Use the Auto Calculator Payment
Using our auto calculator payment tool is the most effective way to budget for your next vehicle purchase. By inputting a few key figures, you can immediately see how different loan terms, interest rates, and down payments impact your monthly budget. Whether you are buying a brand-new sedan or a pre-owned truck, this tool provides transparency before you ever step foot on a dealership lot.
To get started, follow these simple steps:
- Vehicle Price
- The total purchase price of the car before any discounts or taxes.
- Down Payment & Trade-In
- The cash you are paying upfront plus the value of your current vehicle if you are trading it in.
- Interest Rate (APR)
- The annual percentage rate provided by your lender or bank based on your credit score.
- Loan Term
- The duration of the loan, usually expressed in months (e.g., 36, 48, 60, or 72 months).
How It Works: The Math Behind the Payment
When you calculate an auto loan, the tool uses an amortization formula to determine the fixed monthly payment. The total amount financed includes the price and fees, minus your trade-in and down payment. The formula used is:
A = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]
- A = Monthly payment amount
- P = Principal loan amount (Total financed)
- i = Monthly interest rate (Annual rate divided by 12)
- n = Total number of monthly payments
Calculation Example
Example: You want to buy a car for $35,000. You have a $5,000 down payment and a trade-in worth $2,000. Your credit score qualifies you for a 6% interest rate over 60 months, with 7% sales tax.
Step-by-step solution:
- Net Price = $35,000 – $2,000 (trade-in) = $33,000
- Sales Tax = $33,000 * 0.07 = $2,310
- Loan Amount (P) = $35,000 – $5,000 – $2,000 + $2,310 = $30,310
- Monthly Rate (i) = 0.06 / 12 = 0.005
- Term (n) = 60 months
- Calculation: $30,310 [ 0.005(1.005)^60 ] / [ (1.005)^60 – 1 ]
- Result = $585.97 per month
Auto Financing Tips
Should I choose a longer or shorter term?
A shorter term (36-48 months) results in higher monthly payments but significantly lower total interest paid over the life of the loan. Conversely, a 72 or 84-month term makes the auto calculator payment look more affordable monthly, but you will pay much more in interest and risk being "upside down" (owing more than the car is worth).
How does credit score affect my payment?
Credit scores are the primary factor lenders use to determine your interest rate. A "prime" borrower (720+) might receive a 5% rate, while a "subprime" borrower might see rates of 15% or higher. Even a 2% difference in rate can change your monthly payment by dozens of dollars and your total interest by thousands.
What are common dealership fees?
When using the auto calculator payment, don't forget to include fees. Common charges include documentation fees, title and registration fees, and destination charges. These can easily add $500 to $1,500 to your loan amount, which is why the "Fees" field in our calculator is so important for accuracy.