Auto Loan Calculator

Calculate your monthly auto loan payments with our easy-to-use calculator. Plan your budget and find the best financing options for your new vehicle.

Loan Parameters

Car Price ($)

Down Payment ($)

Trade-in Value ($)

Sales Tax (%)

Loan Term (Months)

Annual Interest Rate (%)

Additional Fees ($)

Loan Results

Loan Amount: $25,000.00

Monthly Payment: $737.91

Total Interest: $2,564.74

Total Cost: $32,164.74

Payoff Date: Aug 2028

Month	Starting Balance	Payment	Principal	Interest	Ending Balance

How to Use the Auto Loan Calculator

Our auto loan calculator helps you estimate your monthly car payments based on the car price, down payment, trade-in value, sales tax, loan term, interest rate, and any additional fees. By entering these values, you can see how different loan terms and interest rates affect your monthly budget and total loan cost.

The calculator uses the standard amortization formula to determine your monthly payment, which includes both principal and interest. It also generates an amortization schedule showing how each payment is applied to the principal balance and interest over the life of the loan.

The monthly payment calculated by this tool includes:

Principal: The amount of money you borrow to purchase the vehicle.
Interest: The cost of borrowing the money, calculated based on your interest rate.

Note that this calculator does not include additional costs such as insurance, maintenance, registration fees, or fuel costs. These expenses should be considered when determining how much car you can afford.

The loan term, or the length of time you have to repay the loan, has a significant impact on your monthly payment and the total cost of the loan:

Shorter terms (e.g., 24-36 months) result in higher monthly payments but lower total interest costs because you're paying off the loan faster.
Longer terms (e.g., 60-84 months) result in lower monthly payments but higher total interest costs because you're paying interest over a longer period.

While longer terms may seem appealing because of the lower monthly cost, they often result in paying more for the vehicle overall. It's important to balance your monthly budget with the total cost of the loan when choosing a term.

There are several ways to reduce your monthly car payment:

Increase your down payment: A larger down payment reduces the amount you need to borrow.
Opt for a longer loan term: While this increases total interest, it lowers monthly payments.
Improve your credit score: A higher credit score can qualify you for a lower interest rate.
Negotiate a lower purchase price: A lower car price means a smaller loan amount.
Consider a trade-in: Using your current vehicle as a trade-in reduces the amount you need to borrow.

Keep in mind that while extending the loan term reduces monthly payments, it increases the total cost of the loan due to more interest paid over time. Always compare different loan scenarios to find the best balance for your financial situation.

The interest rate is the cost of borrowing the principal loan amount, expressed as a percentage. The Annual Percentage Rate (APR) includes the interest rate plus any additional fees or costs associated with the loan, such as origination fees or discount points.

While the interest rate helps you understand the cost of borrowing the principal, the APR gives you a more accurate picture of the total cost of the loan. When comparing loan offers, it's important to look at both the interest rate and the APR to determine which loan is truly the most affordable.

This calculator uses the interest rate you provide to calculate your monthly payment and total interest. If you want to factor in additional fees, you can include them in the "Additional Fees" field.