Estimate your monthly auto loan payments, total interest, and overall vehicle cost.
Monthly Payment:$0.00
Total Loan Amount:$0.00
Total Interest Paid:$0.00
Total Cost (Price + Interest + Tax):$0.00
How to Use the Car Loan Payment Calculator
Purchasing a vehicle is a major financial commitment. Our car loan calculator helps you break down the costs into manageable monthly figures, allowing you to budget effectively before visiting the dealership. By adjusting variables like the down payment and loan term, you can see exactly how much house—or in this case, how much car—you can afford.
Understanding the Key Components
Vehicle Price: The negotiated price of the car before taxes and fees.
Down Payment: The cash you pay upfront. A larger down payment reduces your loan principal and monthly costs.
Trade-In Value: The amount a dealer offers for your current vehicle, which acts like an additional down payment.
APR (Interest Rate): The annual percentage rate charged by the lender. Your credit score significantly impacts this rate.
Loan Term: The duration of the loan. While longer terms (e.g., 72 or 84 months) lower monthly payments, they increase the total interest paid over the life of the loan.
The Math Behind Your Monthly Payment
To calculate your monthly car payment manually, we use the standard amortization formula:
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]
Where:
M = Total monthly payment
P = Principal loan amount
i = Monthly interest rate (Annual Rate / 12)
n = Number of months (Loan Term)
Example Calculation: Buying a $35,000 SUV
Imagine you are purchasing a new SUV for $35,000. You have $5,000 for a down payment and a trade-in worth $3,000. You secure a 60-month loan at a 6% APR. Your sales tax is 7%.