Estimate your monthly car payments based on price, interest, and term.
Estimated Monthly Payment: $0.00
Total Loan Amount (with tax):$0.00
Total Interest Paid:$0.00
Total Cost of Car:$0.00
How to Use the Auto Loan Calculator
Buying a car is a significant financial commitment. This calculator helps you understand the impact of interest rates, down payments, and loan terms on your monthly budget. By inputting the vehicle's purchase price, your intended down payment, and any trade-in value, you can see exactly how much financing you require.
Key Factors in Your Car Loan
Interest Rate (APR): This is the cost of borrowing the money. A lower APR significantly reduces the total interest paid over the life of the loan.
Loan Term: While a longer term (e.g., 72 or 84 months) reduces your monthly payment, it increases the total interest you pay. Most experts recommend a 60-month term for new cars.
Sales Tax: Often overlooked, sales tax can add thousands to your loan if you choose to finance it. This calculator adds the tax percentage to the vehicle price before subtracting your down payment.
Example Calculation
If you purchase a car for $30,000 with a $5,000 down payment and a 7% sales tax, your financed amount (the principal) would be $27,100. At a 5% interest rate for 60 months, your monthly payment would be approximately $511.41. Over 5 years, you would pay a total of $3,584.60 in interest.
Tips for Getting a Lower Payment
To reduce your monthly burden, consider increasing your down payment to at least 20% of the vehicle price. Additionally, checking your credit score before applying can help you secure a lower APR, which is the most effective way to save money on the total cost of the vehicle.
function calculateAutoLoan() {
var price = parseFloat(document.getElementById("vehiclePrice").value);
var down = parseFloat(document.getElementById("downPayment").value) || 0;
var trade = parseFloat(document.getElementById("tradeIn").value) || 0;
var rate = parseFloat(document.getElementById("interestRate").value);
var term = parseFloat(document.getElementById("loanTerm").value);
var tax = parseFloat(document.getElementById("salesTax").value) || 0;
if (isNaN(price) || isNaN(rate) || isNaN(term) || price <= 0) {
alert("Please enter valid numbers for Price, Interest Rate, and Loan Term.");
return;
}
// Calculate tax amount and add to price
var taxAmount = price * (tax / 100);
var totalWithTax = price + taxAmount;
// Principal is (Price + Tax) – Down Payment – Trade-in
var principal = totalWithTax – down – trade;
if (principal <= 0) {
document.getElementById("resMonthlyPayment").innerHTML = "$0.00";
document.getElementById("resTotalLoan").innerHTML = "$0.00";
document.getElementById("resTotalInterest").innerHTML = "$0.00";
document.getElementById("resTotalCost").innerHTML = (down + trade).toLocaleString('en-US', {style: 'currency', currency: 'USD'});
document.getElementById("resultBox").style.display = "block";
return;
}
var monthlyRate = (rate / 100) / 12;
var monthlyPayment = 0;
if (rate === 0) {
monthlyPayment = principal / term;
} else {
var x = Math.pow(1 + monthlyRate, term);
monthlyPayment = (principal * x * monthlyRate) / (x – 1);
}
var totalInterest = (monthlyPayment * term) – principal;
var totalCost = totalWithTax + totalInterest;
document.getElementById("resMonthlyPayment").innerHTML = monthlyPayment.toLocaleString('en-US', {style: 'currency', currency: 'USD'});
document.getElementById("resTotalLoan").innerHTML = principal.toLocaleString('en-US', {style: 'currency', currency: 'USD'});
document.getElementById("resTotalInterest").innerHTML = totalInterest.toLocaleString('en-US', {style: 'currency', currency: 'USD'});
document.getElementById("resTotalCost").innerHTML = totalCost.toLocaleString('en-US', {style: 'currency', currency: 'USD'});
document.getElementById("resultBox").style.display = "block";
}