Auto Loan Calculator
Calculate monthly payments, total interest, and affordability for your car loan
Calculate Your Auto Loan
Final purchase price of the vehicle
Cash payment you make upfront
Value of your current vehicle (optional)
Local sales tax rate (affects trade-in value)
Annual percentage rate from your lender
How long you'll pay back the loan
Loan Payment Results
Calculation Details
Car Price: $0
Down Payment: $0
Trade-in Value: $0
Interest Rate: 0% APR
Loan Term: 0 months
Monthly Rate: 0.000%
Example Calculation
Used Car Loan Example
Car Price: $20,000 (5-year-old Jeep Wrangler)
Down Payment: $1,500 (cash in savings)
Trade-in Value: $7,000 (old Chevrolet Silverado)
Sales Tax: 10%
Interest Rate: 4% APR
Loan Term: 3 years (36 months)
Calculation Steps
1. Trade-in after tax: $7,000 - ($7,000 × 10%) = $6,300
2. Loan amount: $20,000 - $1,500 - $6,300 = $12,200
3. Monthly rate: 4% ÷ 12 = 0.3333%
4. Monthly payment: $12,200 × (0.003333 × (1.003333)³⁶) ÷ ((1.003333)³⁶ - 1)
Result: $360.19/month
Total interest: $766.93
Loan Term Impact
3 Years
Higher monthly payments
Less total interest paid
5 Years
Balanced monthly payments
Most popular choice
7+ Years
Lower monthly payments
Much more total interest
Auto Loan Tips
Shop around for the best interest rates
Consider pre-approval before shopping
Aim for 20% down payment to avoid being underwater
Keep payments under 15% of monthly income
Consider used cars for better value
Understanding Auto Loans
What is an Auto Loan?
An auto loan is a secured loan used to purchase a vehicle. The car serves as collateral, which typically means lower interest rates compared to unsecured loans. You'll make fixed monthly payments over a predetermined period, usually 1-8 years.
Key Benefits
- •Build credit history with timely payments
- •Own the vehicle immediately after purchase
- •No mileage restrictions unlike leasing
- •Can modify the vehicle as desired
Payment Formula
M = P × [r(1+r)ⁿ] / [(1+r)ⁿ - 1]
- M: Monthly payment
- P: Principal loan amount
- r: Monthly interest rate (APR ÷ 12)
- n: Total number of payments
Loan Amount = Car Price - Down Payment - Trade-in Value (after tax)
Financing Options
- Direct Lending: Bank or credit union loan
- Dealership Financing: Arranged through the dealer
- Manufacturer Incentives: Special rates from automakers
- Credit Union: Often offers competitive rates