Categories🚗 Auto & TransportCar Loan Calculator

Car Loan Calculator

Estimate monthly auto loan payments, interest, down payment, and trade-in value.

Estimated Monthly Payment
US$420.23 / mo
Loan Amount: US$22,000.00 | Total Interest: US$3,213.53
Guide & Educational Reference
How to Use the Car Loan Calculator
  1. 1Enter total Vehicle Purchase Price ($).
  2. 2Enter Down Payment ($) cash contribution.
  3. 3Enter Trade-in Value ($) allowance for your current vehicle.
  4. 4Enter annual loan Interest Rate % (APR).
  5. 5Select Loan Term in months (24, 36, 48, 60, 72, or 84 months).
  6. 6View estimated monthly payment, net financed loan amount, and total interest paid over the loan term.
Understanding Auto Loan Financing

An auto loan finances the purchase price of a vehicle minus down payment and trade-in credit. Borrowers repay the net loan amount plus interest over a fixed monthly amortization schedule.

Formulas Implemented by THE CALC
1. Net Financed Loan Amount (P)

Vehicle price minus cash down payment and trade-in credit.

Loan Amount (P) = Vehicle Price − Down Payment − Trade-in Credit
2. Monthly Amortized Payment (M)

Standard financial formula using monthly rate r = (APR / 100) / 12 and term n months.

M = P × [ r(1+r)ⁿ ] / [ (1+r)ⁿ − 1 ] | If APR = 0%: M = P / n
3. Total Interest & Total Cost

Cumulative interest paid over loan term.

Total Interest = (M × n) − P | Total Loan Cost = P + Total Interest
Practical Real-World Example
$28,000 Vehicle ($4,000 Down, $2,000 Trade-in, 5.5% APR for 60 months)
Net Financed Loan P = 28,000 − 4,000 − 2,000 = $22,000 Monthly rate r = (5.5 / 100) / 12 = 0.0045833 Monthly Payment M = 22,000 × [ 0.0045833(1.0045833)⁶⁰ ] / [ (1.0045833)⁶⁰ − 1 ] = $420.23/mo Total Interest = (420.23 × 60) − 22,000 = $3,213.53
→ Monthly Payment: $420.23/mo | Loan Amount: $22,000.00 | Total Interest: $3,213.53
$30,000 car, $5,000 down, no trade-in, 6% APR, 60 months, 0% tax
Loan = 30000 − 5000 = 25000; r = 0.06/12; Payment ≈ 25000 · r(1+r)^60 / ((1+r)^60 − 1) ≈ 483.32
→ ≈ $483.32/month; ≈ $3,999 total interest
$20,000 car, $2,000 down, $3,000 trade-in, 0% APR, 48 months, 7% tax
Price with tax = 20000 × 1.07 = 21400; Loan = 21400 − 2000 − 3000 = 16400; Payment = 16400 / 48
→ ≈ $341.67/month; $0 interest
Important Financing Considerations & Exclusions
  • Excludes total cost of ownership: Monthly payments cover principal and loan interest only. Sales tax, dealer documentation fees, title/registration fees, vehicle insurance, fuel/charging, and maintenance are excluded.
  • Loan term trade-off: Longer loan terms (72 or 84 months) reduce your monthly payment amount but increase total interest paid over the life of the loan.
  • Zero percent financing (0% APR): If 0% APR applies, total interest is $0.00 and monthly payment is simply Net Loan Amount divided by months.
Frequently Asked Questions

How does a trade-in affect my car loan?

A trade-in reduces the net loan principal dollar-for-dollar, reducing both your monthly payment and total interest charges.

Does this loan calculator include sales tax?

The basic auto loan engine defaults sales tax to 0%. If applicable, add your local sales tax to the vehicle price input before calculating.

How is the loan amount determined?

Vehicle price is first increased by the sales-tax percentage, then the down payment and trade-in value are subtracted. The result (never below zero) is the amount financed.

What happens at 0% APR?

The payment becomes the loan amount divided by the number of months, and total interest is zero.

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