Auto Loan Calculator

What is a car loan calculator?

A car loan calculator estimates your monthly payment and the total cost of financing a vehicle. This auto loan calculator includes the vehicle price, sales tax, fees, down payment, trade-in value, any balance still owed on a trade-in, rebates, APR and loan term.

The calculator first estimates the amount financed: price plus tax and fees, minus your down payment, trade-in value and rebates, plus any amount still owed on the trade-in. It then uses the standard amortization formula to estimate payments over the loan term. The result is an estimate, not a lender offer. A lender may use different fees, rates or loan terms.

Why your car payment matters

The monthly payment tells you how much of your budget the loan will use. The amount financed and total interest show what that payment costs over the full term. Looking at all three helps you compare cars and loan offers without focusing on the monthly payment alone.

A longer term can reduce the payment while increasing total interest and the chance you owe more than the car is worth. A shorter term can reduce the time you pay interest, but the monthly payment may be higher. Compare the payment with your take-home pay and regular bills before choosing a vehicle.

A car payment is only part of the cost of owning a vehicle. This calculator does not estimate expenses such as insurance, fuel, maintenance or repairs unless you include them in the amount entered. Keep those costs in your budget when deciding what you can afford.

How to use this car payment calculator

1. Enter the vehicle price. Use the price you expect to pay, not just the advertised amount.
2. Enter your down payment and trade-in value. If you still owe money on the trade-in, enter that balance separately. The balance adds to the amount financed.
3. Enter any cash rebates and the sales tax rate. Use the rate that applies to your purchase and check whether the displayed tax option is selected.
4. Add title, registration and dealer fees. Include fees you expect to pay as part of the purchase.
5. Enter the loan APR and term from a lender offer or estimate. A car finance calculator can help you compare different combinations of rates and terms.
6. Review the monthly payment, amount financed, total interest and total cost. Adjust the price, down payment or term to see which changes fit your budget.

Car loan calculator example

How to read your car loan results

Monthly payment is the estimated amount due each month under the entered loan terms. Amount financed is the loan principal after the calculator adds taxes and fees and subtracts the down payment, trade-in value and rebates, while adding any balance owed on the trade-in.

Total interest estimates the interest paid across the loan. Total cost of the car combines the upfront down payment with the loan payments, including interest. It does not represent every cost of owning the vehicle. Check the lender’s written offer for the final APR, payment schedule, fees and amount financed.

How to lower your car payment or total loan cost

1. 01

   Negotiate the vehicle price

   Agree on the vehicle price before discussing the monthly payment. A lower price reduces the amount that may need financing, along with any sales tax calculated on that price.

2. 02

   Increase the down payment

   If it fits your savings plan, a larger down payment reduces the amount borrowed. Keep enough cash available for other bills and unexpected expenses.

3. 03

   Compare loan offers

   Ask lenders for the APR, term, fees and amount financed in writing. Enter each offer here to compare both the monthly payment and total interest, rather than choosing by payment alone.

4. 04

   Choose a term with the full cost in mind

   Test a shorter term and compare its payment and total interest with the longer-term option. Choose a payment you can manage without relying on an unusually tight budget.

5. 05

   Check the trade-in balance

   Ask for the trade-in value and payoff balance separately. If the payoff is higher than the trade-in value, the difference increases the amount financed in this estimate.

Common car loan calculator mistakes

• Leaving out taxes or fees

  A payment estimate can look lower if you omit sales tax, title, registration or dealer fees that will be financed. Use the best figures available and check your purchase paperwork.

• Entering the trade-in balance as its value

  Trade-in value and the amount still owed are separate inputs. Enter both so the estimate reflects the value applied to the purchase and the existing payoff balance.

• Comparing payments with different terms

  A lower payment may come from stretching repayment over a longer term. Compare the term, APR and total interest alongside the monthly figure.

• Treating the estimate as the final offer

  The calculator uses the details you enter. Confirm the final rate, fees, financed amount and payment with the lender before signing.

The auto loan formula

Key terms

APR

Annual percentage rate. It represents the yearly cost of borrowing expressed as a rate and is used with the loan term to estimate payments.

Amount financed

The estimated loan principal after adding price, tax, fees and any trade-in balance owed, then subtracting down payment, trade-in value and rebates.

Amortization

A repayment method that schedules payments over the loan term, applying each payment to principal and interest.

Negative equity

A situation where the amount owed on a vehicle is greater than its trade-in value. The difference can add to the amount financed on a replacement vehicle.