Vehicle Loan Calculator

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Vehicle Loan Calculator
Calculate Monthly Payment

Loan Results

Monthly Payment:

Total Loan Amount:

Total Sales Tax:

Total Interest Paid:

Total Cost (Price+Tax+Interest):

Enter your details and click Calculate to see results.
function calculateVehicleLoan(){var price=parseFloat(document.getElementById('input1').value);var down=parseFloat(document.getElementById('input2').value)||0;var trade=parseFloat(document.getElementById('input3').value)||0;var annualRate=parseFloat(document.getElementById('input4').value);var months=parseInt(document.getElementById('input5').value);var taxRate=parseFloat(document.getElementById('input6').value)||0;if(isNaN(price)||isNaN(annualRate)||isNaN(months)){alert('Please enter valid numbers for price, rate, and term.');return;}var taxAmount=price*(taxRate/100);var principal=price+taxAmount-down-trade;if(principal<=0){alert('Down payment and trade-in exceed the vehicle price. No loan needed.');return;}var monthlyRate=annualRate/100/12;var monthlyPayment=0;if(monthlyRate===0){monthlyPayment=principal/months;}else{var x=Math.pow(1+monthlyRate,months);monthlyPayment=(principal*x*monthlyRate)/(x-1);}var totalPaid=monthlyPayment*months;var totalInterest=totalPaid-principal;document.getElementById('monthlyResult').innerHTML='$'+monthlyPayment.toLocaleString(undefined,{minimumFractionDigits:2,maximumFractionDigits:2});document.getElementById('principalResult').innerHTML='$'+principal.toLocaleString(undefined,{minimumFractionDigits:2,maximumFractionDigits:2});document.getElementById('taxResult').innerHTML='$'+taxAmount.toLocaleString(undefined,{minimumFractionDigits:2,maximumFractionDigits:2});document.getElementById('interestResult').innerHTML='$'+totalInterest.toLocaleString(undefined,{minimumFractionDigits:2,maximumFractionDigits:2});document.getElementById('totalCostResult').innerHTML='$'+(price+taxAmount+totalInterest).toLocaleString(undefined,{minimumFractionDigits:2,maximumFractionDigits:2});document.getElementById('placeholderText').style.display='none';document.getElementById('answer').style.display='block';}

How to Use the Vehicle Loan Calculator

Choosing the right financing is just as important as choosing the right car. This vehicle loan calculator helps you estimate your monthly payments and understand the long-term costs associated with your purchase. By adjusting factors like your down payment and interest rate, you can find a loan that fits your monthly budget without overextending your finances.

To get started, simply input the following details into the tool:

Vehicle Price
The total purchase price of the car, truck, or SUV before any trade-ins or down payments.
Down Payment
The amount of cash you are paying upfront. A higher down payment reduces the total amount you need to borrow.
Interest Rate
The annual percentage rate (APR) offered by your lender. This is based on your credit score and the loan market.
Loan Term
The length of the loan in months (e.g., 36, 48, 60, or 72 months).

The Vehicle Loan Formula

When banks calculate your payment, they use a standard amortization formula. Understanding this math can help you see why the length of your loan and your interest rate have such a significant impact on the total amount you pay.

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

  • M: Total monthly payment
  • P: Principal loan amount (Price + Tax – Down Payment – Trade-in)
  • i: Monthly interest rate (Annual Rate / 12 / 100)
  • n: Total number of monthly payments

Calculation Example

Scenario: You are looking at a new SUV priced at $40,000. You have a trade-in worth $5,000 and an additional $2,000 in cash for a down payment. Your bank offers a 6.0% interest rate for 60 months, and your local sales tax is 5%.

Step-by-step solution:

  1. Calculate Tax: $40,000 * 0.05 = $2,000.
  2. Calculate Principal: $40,000 + $2,000 (Tax) – $5,000 (Trade) – $2,000 (Down) = $35,000 loan.
  3. Monthly Rate: 6.0% / 12 = 0.5% (or 0.005 as a decimal).
  4. Calculate Payment: Using the formula, the monthly payment comes to approximately $676.64.
  5. Total Interest: Over 60 months, you will pay $5,598.40 in interest.

Common Questions

How does a trade-in affect my loan?

A trade-in acts like a down payment. It reduces the total amount you need to borrow from the lender. In many states, you also receive a tax credit for the trade-in value, meaning you only pay sales tax on the difference between the new car price and the trade-in value.

Is a longer loan term better?

A longer term (like 72 or 84 months) results in a lower monthly payment, which helps your monthly cash flow. However, it increases the total amount of interest you pay over the life of the loan. Additionally, you may find yourself "underwater" (owing more than the car is worth) longer because cars depreciate quickly.

What is a good interest rate for a vehicle loan?

Interest rates vary based on the economy and your credit score. Generally, borrowers with credit scores above 740 receive the lowest rates. New cars also tend to have lower interest rates than used cars because lenders view them as lower-risk collateral.

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