Estimate your monthly auto loan payments, including taxes and trade-ins.
Estimated Monthly Payment$0.00
Total Loan Amount$0.00
Total Interest Paid$0.00
Sales Tax Amount$0.00
Total Cost of Car$0.00
How to Calculate Your Car Loan Payment
Understanding your car loan payment is essential for maintaining a healthy financial life. When you use our car loan calculator, we factor in several variables that affect your bottom line. The most critical factors are the vehicle price, your down payment, the interest rate (APR), and the loan term.
The standard formula for calculating a monthly car loan payment is:
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]
M: Total monthly payment
P: Principal loan amount (Total price – down payment – trade value + taxes)
i: Monthly interest rate (Annual rate divided by 12)
n: Total number of months on the loan
Example Calculation
Imagine you are purchasing a car for $30,000 with a 6.0% sales tax. You have a $5,000 down payment and no trade-in. You secure a 5-year (60 months) loan at a 5.0% interest rate.
Calculation: Using the formula above, your monthly payment would be $505.75.
Total Interest: Over 60 months, you would pay a total of $3,545.16 in interest.
Tips for Lowering Your Monthly Payment
If the results from the calculator are higher than your budget allows, consider these strategies:
Increase Down Payment: Putting more money down upfront reduces the principal balance immediately.
Improve Your Credit Score: A higher credit score typically results in a lower interest rate (APR), which can save you thousands over the life of the loan.
Extend the Term: Moving from a 48-month loan to a 72-month loan will lower the monthly payment, but be aware that you will pay significantly more in total interest.
Negotiate Trade-in Value: Ensure you are getting the fair market value for your current vehicle to reduce the total amount you need to borrow.
function calculateAutoLoan() {
var price = parseFloat(document.getElementById('carPrice').value);
var down = parseFloat(document.getElementById('downPayment').value) || 0;
var trade = parseFloat(document.getElementById('tradeValue').value) || 0;
var rate = parseFloat(document.getElementById('interestRate').value);
var months = parseInt(document.getElementById('loanTerm').value);
var taxPercent = parseFloat(document.getElementById('salesTax').value) || 0;
if (isNaN(price) || price <= 0 || isNaN(rate) || isNaN(months) || months <= 0) {
alert("Please enter valid positive numbers for price, interest rate, and term.");
return;
}
var taxAmount = price * (taxPercent / 100);
var principal = (price + taxAmount) – down – trade;
if (principal <= 0) {
document.getElementById('monthlyPaymentDisplay').innerText = "$0.00";
document.getElementById('totalLoanDisplay').innerText = "$0.00";
document.getElementById('totalInterestDisplay').innerText = "$0.00";
document.getElementById('taxAmountDisplay').innerText = "$" + taxAmount.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('totalCostDisplay').innerText = "$" + (price + taxAmount).toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resultsSection').style.display = "block";
return;
}
var monthlyInterest = (rate / 100) / 12;
var monthlyPayment;
if (rate === 0) {
monthlyPayment = principal / months;
} else {
var x = Math.pow(1 + monthlyInterest, months);
monthlyPayment = (principal * x * monthlyInterest) / (x – 1);
}
var totalPayment = monthlyPayment * months;
var totalInterest = totalPayment – principal;
var totalCost = totalPayment + down + trade;
document.getElementById('monthlyPaymentDisplay').innerText = "$" + monthlyPayment.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('totalLoanDisplay').innerText = "$" + principal.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('totalInterestDisplay').innerText = "$" + totalInterest.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('taxAmountDisplay').innerText = "$" + taxAmount.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('totalCostDisplay').innerText = "$" + totalCost.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resultsSection').style.display = "block";
}