Auto Loan Calculator
Calculate your monthly car payment, total interest, and total cost for any auto loan.
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How to use this calculator
M = monthly payment, P = loan amount, r = monthly interest rate, n = number of months.
- 1
Enter the vehicle purchase price.
- 2
Enter your down payment and any trade-in vehicle value.
- 3
Enter the annual interest rate from your lender.
- 4
Enter the loan term in months (36, 48, 60, or 72 are most common).
- 5
See your monthly payment and total financing cost.
Frequently asked questions
How is the amount financed calculated?
It is the vehicle price minus the down payment minus the trade-in value, floored at zero. This tool uses no sales tax, registration or dealer fee, so a $42,000 vehicle with $6,000 down and a $9,500 trade-in shows $26,500.00 financed. If your paperwork adds taxes or fees to the loan, add them to the price field yourself.
Which formula produces the monthly payment?
This tool uses payment = P × r ÷ (1 − (1 + r)^−n), where r is the annual rate ÷ 12 and n is the loan term in months. Payments are level and made at the end of each month. For $25,000 at 7.5% over 60 months the result is $500.95.
What does “No Financing Needed” mean?
It appears when the down payment plus trade-in is equal to or greater than the price, so nothing is left to borrow. For example, a $30,000 vehicle with $20,000 down and a $10,000 trade-in produces that message instead of a payment.
Is the loan term in months or years?
In months, unlike some other loan tools on this site. A six-year loan is entered as 72. A term of 0 months shows n/a rather than a payment.
What happens at a 0% rate?
The payment is the amount financed divided by the months, with no interest. $25,000 over 60 months at 0% is $416.67 and the total interest is $0.00. Promotional rates are lender offers with their own conditions, which this tool cannot check.
Why does stretching the term lower the payment but cost more overall?
Each payment is smaller because the balance is spread over more months, but interest accrues on the outstanding balance for longer. On $25,000 at 7.5%, 48 months costs $4,014.68 in interest, 72 months costs $6,122.20 and 84 months costs $7,210.38.
Does the calculation cover negative equity, insurance or fees?
No. It does not add an old loan balance rolled into the new one, gap cover, extended warranties, documentation fees or insurance, and it does not model early repayment penalties. A negative trade-in entry would simply raise the amount financed arithmetically.
Are the interest rates in the examples realistic for me?
They are only illustrations of the arithmetic. Real rates, fees and lending rules vary by lender, borrower and date, and the lender’s disclosure is what determines your actual cost.
Vehicle financing: how price, down payment and term set the monthly figure
From sticker price to amount financed
The tool first subtracts your down payment and trade-in from the vehicle price, and only the remainder is amortised. That remainder is then run through P × r ÷ (1 − (1 + r)^−n) with a monthly rate and a term counted in months. The default $30,000 vehicle with $5,000 down finances $25,000, which at 7.5% over 60 months costs $500.95 a month, $5,056.92 in interest and $30,056.92 in total repayments.
Worked example: a trade-in and a six-year term
Take a $42,000 vehicle with $6,000 down and a $9,500 trade-in at 6.9% over 72 months. The tool finances $26,500.00, charges $450.53 a month, and totals $5,937.96 of interest and $32,437.96 of repayments. The payment excludes any sales tax or registration charges, since those are not inputs. Trade-in value reduces the amount borrowed in exactly the same way cash does, and the tool has no separate field for a lien or payoff on the old vehicle, so enter the net figure you expect to receive.
The same $25,000 over different terms
Only the loan term changes in the table below, with $25,000 financed at 7.5%. The monthly payment falls steadily as the term lengthens while the total interest climbs, which is the trade-off the term field exposes. Note that the 84-month figure matches the 7-year row of the general payment calculator for the same amount and rate, because both use the same level-payment formula.
| Term | Monthly payment | Total interest | Total cost of loan |
|---|---|---|---|
| 48 months | $604.47 | $4,014.68 | $29,014.68 |
| 72 months | $432.25 | $6,122.20 | $31,122.20 |
| 84 months | $383.46 | $7,210.38 | $32,210.38 |
Zero rate and fully covered purchases
A 0% rate is calculated as a straight division: $25,000 over 60 months is $416.67 a month with no interest. If the down payment and trade-in together meet or exceed the price, the tool says no financing is needed instead of producing a payment, and a term of 0 months returns n/a.
What is not in the payment
Taxes, registration, dealer and documentation fees, insurance, add-on products, rolled-over balances from a previous vehicle and early-repayment charges are all outside the formula. Rates, fees and rules differ by lender and change over time, so the loan agreement, not this estimate, governs what you will pay.
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Results are estimates for informational purposes only and do not constitute professional financial, medical, legal, or technical advice. Read full disclaimer →