Calculate your monthly auto loan payments, including taxes and trade-ins.
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 Amortization Calculator
Purchasing a new or used vehicle is a significant financial commitment. Our car loan amortization calculator helps you break down the monthly costs to ensure the vehicle fits within your monthly budget. To get an accurate estimate, you will need the vehicle's purchase price, your intended down payment, and the estimated interest rate provided by your lender.
Understanding the Calculation Components
Vehicle Price: The negotiated price of the car before any additions.
Down Payment: The cash you pay upfront. A higher down payment reduces the principal and the total interest paid.
Trade-in Value: The amount a dealer offers for your current vehicle, which acts as a credit against the new purchase.
APR (Annual Percentage Rate): The yearly interest rate charged by the bank or credit union.
Loan Term: The duration you have to pay back the loan, typically ranging from 36 to 84 months.
Example Calculation: 60-Month Auto Loan
If you purchase a car for $30,000 with a $5,000 down payment and a $2,000 trade-in at a 5% APR for 60 months, and a 6% sales tax:
If the calculated monthly payment is too high for your budget, consider these strategies:
Extend the Loan Term: Moving from a 60-month to a 72-month loan will lower the monthly payment but increase the total interest paid over the life of the loan.
Improve Your Credit Score: A higher credit score qualifies you for lower interest rates, which directly reduces both your monthly payment and total interest.
Increase Your Down Payment: Aim for at least 20% down to avoid "gap" issues where you owe more than the car is worth.
function calculateCarLoan() {
var carPrice = parseFloat(document.getElementById("carPrice").value);
var downPayment = parseFloat(document.getElementById("downPayment").value) || 0;
var tradeIn = parseFloat(document.getElementById("tradeIn").value) || 0;
var interestRate = parseFloat(document.getElementById("interestRate").value);
var loanTerm = parseFloat(document.getElementById("loanTerm").value);
var salesTaxRate = parseFloat(document.getElementById("salesTax").value) || 0;
if (isNaN(carPrice) || isNaN(interestRate) || isNaN(loanTerm) || carPrice <= 0) {
alert("Please enter valid numbers for Price, Interest Rate, and Loan Term.");
return;
}
// Calculation Logic
var taxAmount = carPrice * (salesTaxRate / 100);
var principal = carPrice – downPayment – tradeIn + taxAmount;
if (principal <= 0) {
document.getElementById("monthlyPaymentDisplay").innerText = "$0.00";
document.getElementById("totalLoanDisplay").innerText = "$0.00";
document.getElementById("results").style.display = "block";
return;
}
var monthlyRate = (interestRate / 100) / 12;
var monthlyPayment = 0;
if (monthlyRate === 0) {
monthlyPayment = principal / loanTerm;
} else {
monthlyPayment = (principal * monthlyRate) / (1 – Math.pow(1 + monthlyRate, -loanTerm));
}
var totalPaid = monthlyPayment * loanTerm;
var totalInterest = totalPaid – principal;
var totalCost = carPrice + taxAmount + totalInterest;
// Display Results
document.getElementById("monthlyPaymentDisplay").innerText = "$" + 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("totalCostDisplay").innerText = "$" + totalCost.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById("results").style.display = "block";
}