Auto loan calculator
Enter the car price, your down payment and trade-in value, then pick the interest rate and term. The auto loan calculator gives you the monthly payment, the total cost of the loan and how 24 to 84 months compare.
Source: Consumer Financial Protection Bureau – What is the difference between an auto loan’s interest rate and its APR?. Updated: .
How it is calculated
How the auto loan calculator works
The amount financed is the price minus your down payment and trade-in. The monthly payment follows the standard amortization formula with the monthly rate i = annual rate ÷ 12:
Payment = P · i / (1 − (1 + i)−n)
With a balloon payment B, its present value is taken off first: Payment = (P − B · (1 + i)−n) · i / (1 − (1 + i)−n).
Example: A $30,000 car with $4,000 down and a $2,000 trade-in leaves $24,000 to finance. At 7% for 60 months the payment is $475.23. Over the loan you pay $28,513.80 – $4,513.80 in interest.
Interest rate vs. APR
The interest rate is what you pay for borrowing the money; the APR also includes lender fees such as origination charges, and lenders must disclose it under the Truth in Lending Act (CFPB). This calculator shows the effective annual rate without fees, (1 + i)12 − 1 – 7.23% for a 7% rate. Compare offers by the APR on the loan estimate.
Longer term: lower payment, more interest
The table below the result shows the same loan over 24 to 84 months. The payment drops with the term while total interest rises. Cars also lose value: if you owe more than the car is worth, selling or trading in early gets expensive.
Limits
Sales tax, registration, dealer fees and add-ons such as GAP insurance are not included; add them to the price if you finance them. 0% dealer offers work too (rate 0) – still compare with the cash price, since discounts can differ between cash and financing. This is a calculation, not a loan offer.
Frequently asked questions
How do I calculate a car loan payment?
Enter the amount financed (price − down payment − trade-in), the interest rate and the term. The payment follows the amortization formula: $24,000 at 7% for 60 months is $475.23 a month.
How does a trade-in affect my auto loan?
The trade-in value lowers the amount you finance just like a cash down payment, so both the monthly payment and the total interest go down.
Is a 72- or 84-month car loan a good idea?
It lowers the payment but costs noticeably more interest. The term comparison shows the difference in dollars for your numbers.
What is a balloon payment on a car loan?
Part of the loan is due as one large payment at the end. Monthly payments are smaller, total interest is higher, and you must pay or refinance the balloon when the term ends.
Does the calculator include sales tax?
No. Sales tax and fees vary by state; if you finance them, add them to the vehicle price.
Sources and legal basis
As of:
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