Auto Loan Calculator
Estimate the monthly payment on a car loan from the vehicle price, down payment, trade-in, interest rate, and term.
- Amount financed = $28,000.00 − $3,000.00 − $2,000.00 = $23,000.00.
- Monthly rate = 6% / 12 = 0.500000% and 60 payments.
- Monthly payment = P·i·(1+i)^n / ((1+i)^n − 1) = $444.65.
- Total paid = $444.65 × 60 = $26,679.27; total interest = $3,679.27.
Embed Auto Loan Calculator
Copy this iframe code into a page that permits embeds.
All calculations run locally in your browser. Your entered values are not sent to an external service.
How to Use the Auto Loan Calculator
Enter the vehicle price, cash down payment, and trade-in allowance, then the annual rate and the term in years. Select Calculate Payment to see the amount financed and the fixed monthly payment.
- Enter the advertised or negotiated price.
- Enter cash down and any trade-in credit. Use 0 if there is none.
- Enter the annual rate and the term, then calculate.
This estimate is principal and interest only. Sales tax, title, documentation fees, and add-on products can raise the amount financed. A dealer quote can differ.
The Auto Loan Payment Formula
P is the amount financed (price − down − trade-in), i is the monthly rate, and n is the number of monthly payments. The formula is the same amortization used on the Loan Calculator; the extra inputs are how you get to P from a car deal.
At 0% financing, M is P divided by n. A $15,000 balance over 3 years is $416.67 per month with no interest.
Auto Loan Calculator Examples
Used car with a trade-in
A $28,000 car, $3,000 down, and a $2,000 trade-in finances $23,000. At 6% for 5 years the payment is about $444.65. Total paid is about $26,679.27, of which about $3,679.27 is interest.
New car, no trade-in
A $35,000 price with $5,000 down finances $30,000. At 7.5% for 6 years there are 72 payments. A longer term lowers the monthly figure and raises total interest.
Financing the full price
A $22,000 car with $0 down and $0 trade-in finances the whole $22,000. At 9% for 4 years the payment and the interest total are both higher than a deal with cash down.
Dealer 0% financing
An $18,000 price, $2,000 down, and a $1,000 trade-in finances $15,000. At 0% for 3 years the payment is $15,000 ÷ 36 = $416.67, with $0.00 interest.
How This Differs from the Loan and Mortgage Calculators
The Loan Calculator starts from a principal you already know. This page starts from a vehicle price and subtracts down payment and trade-in. The Mortgage Calculator uses a home price and a down payment, with no trade-in field, and typically much longer terms.
Simple Interest uses I = Prt and does not produce a monthly amortized payment. Use that page for classroom notes, not for a typical car contract.
Common Auto Loan Mistakes
Forgetting sales tax and fees
Many states tax the price, or the price minus trade-in. Those amounts can be rolled into the loan and are not added here.
Counting a trade-in twice
A trade-in reduces the amount financed. Do not also subtract it from the monthly payment.
Choosing a longer term only to lower the payment
A 6-year loan can cost more interest than a 4-year loan on the same car, and you may owe more than the car is worth for longer.
Entering the monthly rate as the annual rate
Enter the annual rate. The calculator divides by 12.
Down payment plus trade-in larger than the price
Then there is nothing to finance. The calculator requires a positive amount financed.
Auto Loan Calculator FAQs
How is an auto loan payment calculated?
Subtract down payment and trade-in from the price, then amortize that principal over monthly payments.
Does this include tax and dealer fees?
No. It estimates principal and interest on the amount you enter as price, down, and trade-in.
What if I have no trade-in?
Enter 0 for the trade-in.
Can I enter 0% financing?
Yes. The payment is the amount financed divided by the number of months.
How is this different from the Loan Calculator?
This page builds the principal from a car price, cash down, and trade-in. The Loan Calculator starts from a known amount.
Are my numbers sent to a server?
No. The calculation runs locally in your browser.
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Reviewed by Prof. Dr. Khalil Mudassar (PhD) · Last updated: [mc_modified_date]
Sources
Disclaimer
This calculator is for general educational use and provides estimates only. It is not financial or lending advice. Confirm the rate, fees, tax, and add-ons with the dealer or lender before you sign.