Auto Loan Amortization Calculator
Calculate your monthly car payments and total interest.
24 Months (2 Years)
36 Months (3 Years)
48 Months (4 Years)
60 Months (5 Years)
72 Months (6 Years)
84 Months (7 Years)
Estimated Monthly Payment
$0.00
Total Loan Amount (Financed)
$0.00
Total Interest Paid
$0.00
Total Cost of Car (Inc. Interest)
$0.00
Understanding Your Auto Loan Calculation
Financing a new or used vehicle involves more than just looking at the sticker price. This Auto Loan Amortization Calculator helps you understand the true cost of borrowing by factoring in trade-ins, sales tax, and interest rates.
How the Formula Works
The calculation starts by determining your Taxable Amount. In most states, the value of your trade-in is deducted from the vehicle price before sales tax is applied. This can result in significant tax savings.
- Taxable Base: Vehicle Price – Trade-In Value
- Total Amount to Finance: (Taxable Base + Sales Tax) – Down Payment
Once the loan principal is established, we use the amortization formula to determine your monthly obligation. A higher interest rate (APR) or a longer loan term (e.g., 72 or 84 months) will drastically increase the Total Interest Paid over the life of the loan, even if it lowers your monthly payment slightly.
Tips for Lowering Your Car Payment
To secure the best deal on your auto loan, consider the following strategies:
- Increase your Down Payment: Paying more upfront reduces the principal, resulting in less interest accrued.
- Shorten the Term: While 60 or 72 months is common, opting for 36 or 48 months usually qualifies you for lower interest rates.
- Check Credit Score: Your APR is directly tied to your creditworthiness. Ensure your credit report is accurate before applying.
Use this calculator to test different scenarios—such as putting an extra $1,000 down or negotiating a 1% lower rate—to see how much money you can save in the long run.