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Car Loan Payment Calculator

Estimate your monthly auto financing costs instantly.

12 Months (1 Year) 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 Principal $0.00
Total Interest $0.00
function calculateCarLoan() { var carPrice = parseFloat(document.getElementById('carPrice').value) || 0; var downPayment = parseFloat(document.getElementById('downPayment').value) || 0; var tradeIn = parseFloat(document.getElementById('tradeIn').value) || 0; var interestRate = parseFloat(document.getElementById('interestRate').value) || 0; var loanTerm = parseFloat(document.getElementById('loanTerm').value) || 0; var principal = carPrice – downPayment – tradeIn; if (principal 0) { var monthlyRate = (interestRate / 100) / 12; monthlyPayment = principal * (monthlyRate * Math.pow(1 + monthlyRate, loanTerm)) / (Math.pow(1 + monthlyRate, loanTerm) – 1); totalInterest = (monthlyPayment * loanTerm) – principal; } else { monthlyPayment = principal / loanTerm; totalInterest = 0; } document.getElementById('monthlyPaymentResult').innerHTML = '$' + monthlyPayment.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('totalPrincipalResult').innerHTML = '$' + principal.toLocaleString(); document.getElementById('totalInterestResult').innerHTML = '$' + totalInterest.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resultArea').style.display = 'block'; }

Understanding Your Car Loan Calculation

Choosing the right vehicle is only half the battle; understanding how your monthly payment is calculated is essential for maintaining a healthy budget. This car loan calculator helps you break down the numbers so there are no surprises when you sign the paperwork at the dealership.

Key Factors in Your Monthly Payment

  • Vehicle Price: This is the sticker price or the negotiated price of the car before taxes and fees.
  • Down Payment: The cash you pay upfront. A higher down payment reduces the principal, which lowers your monthly cost and the total interest paid.
  • Trade-in Value: If you are selling your current car to the dealer, this amount acts like a down payment.
  • Interest Rate (APR): The Annual Percentage Rate is what the lender charges you for borrowing money. Your credit score is the primary factor in determining this rate.
  • Loan Term: Most car loans range from 36 to 84 months. While a longer term lowers your monthly payment, it increases the total interest you pay over the life of the loan.

Example Calculation

Let's say you want to buy a car for $30,000. You have a $5,000 down payment and a trade-in worth $2,000. This leaves you with a loan principal of $23,000.

If you secure a 60-month loan at a 5% interest rate:

  • Monthly Payment: Approximately $434.04
  • Total Interest Paid: $3,042.40
  • Total Cost of Loan: $26,042.40

Pro Tip: The 20/4/10 Rule

Financial experts often recommend the 20/4/10 rule for car buying: Put down at least 20%, finance the car for no more than 4 years, and keep your total monthly transportation costs (including insurance) under 10% of your gross income.

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