Auto Loan Calculator
Calculate your monthly car payment, total interest, and find out how much car you can afford.
The purchase price of the vehicle
14.3% of vehicle price
Value of your current vehicle (if trading in)
Your state/local sales tax rate
Loan Terms
Annual interest rate
Common terms: 36, 48, 60, 72 months
What is an Auto Loan Calculator?
An auto loan calculator helps you estimate your monthly car payments based on the vehicle price, down payment, trade-in value, interest rate, and loan term. It's a crucial tool for budgeting and understanding the true cost of financing a vehicle.
Formula
Car loans typically use the standard amortization formula to determine monthly payments.
- M = Monthly Payment
- P = Loan Amount (Price - Down Payment - Trade-in + Tax/Fees)
- i = Monthly Interest Rate (APR / 12)
- n = Loan Term in Months
Example Calculation
Let's calculate the payment for a $35,000 car with a $5,000 down payment, no trade-in, and 6% sales tax. The loan term is 60 months (5 years) at 6.5% interest.
Taxable Amount: $35,000
Sales Tax (6%): $2,100
Total Price: $37,100
Loan Amount (P): $37,100 - $5,000 = $32,100
Monthly Rate (i): 6.5% / 12 = 0.005417
Term (n): 60 months
Monthly Payment: $627.96
Total Interest: $5,577.60
Frequently Asked Questions
How does a trade-in affect my loan?
A trade-in reduces the purchase price of the new vehicle. In many states, you only pay sales tax on the difference between the new car price and the trade-in value, saving you even more money.
What is a good interest rate for a car loan?
Interest rates vary based on your credit score, the vehicle (new vs. used), and current market conditions. Generally, new cars have lower rates than used cars.
Should I choose a longer or shorter loan term?
A longer term (e.g., 72 or 84 months) lowers your monthly payment but significantly increases the total interest paid. A shorter term (e.g., 36 or 48 months) saves money on interest but requires higher monthly payments.
Are there other costs to consider?
Yes, besides the loan payment, consider insurance, registration fees, maintenance, and fuel costs when budgeting for a car.
Can I pay off my car loan early?
Most auto loans do not have prepayment penalties, allowing you to pay extra towards the principal to pay off the loan faster and save on interest.
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