Vehicle Finance Calculator

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Vehicle Finance Calculator
Calculate Monthly PaymentCalculate Affordable Vehicle Price
Result:
Enter values and click Calculate.
function toggleInputs(){var mode=document.getElementById('given_data').value;if(mode==='price'){document.getElementById('label1′).innerHTML='Monthly Payment: $';document.getElementById('label2′).innerHTML='Down Payment: $';document.getElementById('label3′).innerHTML='Trade-in Value: $';}else{document.getElementById('label1′).innerHTML='Vehicle Price: $';document.getElementById('label2′).innerHTML='Down Payment: $';document.getElementById('label3′).innerHTML='Trade-in Value: $';}}function resetForm(){document.getElementById('answer').innerHTML='Enter values and click Calculate.';}function calculateResult(){var mode=document.getElementById('given_data').value;var v1=parseFloat(document.getElementById('input1').value)||0;var v2=parseFloat(document.getElementById('input2').value)||0;var v3=parseFloat(document.getElementById('input3').value)||0;var v4=parseFloat(document.getElementById('input4').value)||0;var v5=parseFloat(document.getElementById('input5').value)||0;var v6=parseFloat(document.getElementById('input6').value)||0;var showSteps=document.getElementById('steps').checked;var out=";if(mode==='payment'){var taxAmt=v1*(v6/100);var loanAmt=v1-v2-v3+taxAmt;var periodicRate=(v4/100)/12;var m=v5;var pmt=0;if(periodicRate===0){pmt=loanAmt/m;}else{pmt=loanAmt*(periodicRate*Math.pow(1+periodicRate,m))/(Math.pow(1+periodicRate,m)-1);}var totalPaid=pmt*m;var totalInt=totalPaid-loanAmt;out='
Monthly Payment: $'+pmt.toFixed(2)+'
';out+='
Loan Amount: $'+loanAmt.toFixed(2)+'
Total Sales Tax: $'+taxAmt.toFixed(2)+'
Total Interest: $'+totalInt.toFixed(2)+'
Total Cost of Loan: $'+totalPaid.toFixed(2)+'
';if(showSteps){out+='
Calculation:
Principal = Price – Down – Trade + Tax
Principal = '+v1+' – '+v2+' – '+v3+' + '+taxAmt.toFixed(2)+' = '+loanAmt.toFixed(2)+'
Monthly Payment = P [ i(1+i)^n ] / [ (1+i)^n – 1 ]
';}}else{var pmt=v1;var down=v2;var trade=v3;var rate=(v4/100)/12;var m=v5;var taxRate=(v6/100);var loanAmt=0;if(rate===0){loanAmt=pmt*m;}else{loanAmt=pmt*(Math.pow(1+rate,m)-1)/(rate*Math.pow(1+rate,m));}var vehiclePrice=(loanAmt+down+trade)/(1+taxRate);var totalInt=(pmt*m)-loanAmt;out='
Maximum Vehicle Price: $'+vehiclePrice.toFixed(2)+'
';out+='
Financeable Amount: $'+loanAmt.toFixed(2)+'
Total Out-of-Pocket: $'+(down+trade).toFixed(2)+'
Total Interest: $'+totalInt.toFixed(2)+'
';}document.getElementById('answer').innerHTML=out;}

Vehicle Finance Calculator Use

Determining the monthly commitment for a new or used car is essential for maintaining a healthy budget. This vehicle finance calculator allows you to estimate your monthly payments or work backward from a monthly budget to find a vehicle price you can afford.

To get the most accurate results, ensure you have your estimated credit score (to determine interest rates) and any trade-in quotes handy.

Vehicle Price
The total purchase price of the car before any down payments or trade-ins.
Down Payment
The cash amount you are paying upfront to reduce the total loan amount.
Trade-in Value
The amount a dealership offers you for your current vehicle to be applied to the new purchase.
Interest Rate (APR)
The annual percentage rate charged by the lender for borrowing the money.

How It Works

The vehicle finance calculator uses the standard amortization formula to calculate payments. The math takes the total principal (loan amount) and spreads it across the term while accounting for compound interest monthly.

Monthly Payment (M) = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]

  • P: Principal loan amount (Vehicle Price – Down Payment – Trade + Sales Tax)
  • i: Monthly interest rate (Annual Rate divided by 12)
  • n: Total number of monthly payments (Loan Term)

Calculation Example

Example: Purchasing a $35,000 SUV with a $5,000 down payment and a $2,000 trade-in value at a 6% interest rate for 60 months (5 years) with 8% sales tax.

Step-by-step solution:

  1. Calculate Sales Tax: $35,000 * 0.08 = $2,800
  2. Calculate Principal: $35,000 (Price) – $5,000 (Down) – $2,000 (Trade) + $2,800 (Tax) = $30,800
  3. Monthly Interest Rate: 0.06 / 12 = 0.005
  4. Term: 60 months
  5. Calculate Payment: $30,800 * [0.005(1.005)^60] / [(1.005)^60 – 1]
  6. Result: $595.45 per month

Common Questions

Is it better to have a longer loan term?

A longer term (e.g., 72 or 84 months) reduces your monthly payment, making the vehicle more affordable on a month-to-month basis. However, you will pay significantly more in total interest over the life of the loan. Short-term loans (36–48 months) are financially wiser if the payment fits your budget.

What is a good interest rate for a car loan?

Interest rates depend heavily on your credit score and whether the vehicle is new or used. Typically, "excellent" credit scores (750+) qualify for the lowest rates, often between 3% and 6%, while "fair" or "poor" scores may see rates exceeding 15%.

Does trade-in value reduce sales tax?

In many states, the trade-in value is deducted from the vehicle price before sales tax is calculated. Our vehicle finance calculator applies tax to the full price as a conservative estimate, but you should check local state laws for specific tax credits on trade-ins.

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