Auto Loan Calculator
Enter the vehicle price, any down payment or trade-in value, your interest rate, and loan term to calculate your estimated monthly car payment.
How the Auto Loan formula works
The loan amount is reduced by any down payment and trade-in before applying the standard amortization formula:
Loan amount = Price − Down payment − Trade-in value M = P × [ r(1+r)ⁿ ] / [ (1+r)ⁿ − 1 ]
Where M is the monthly payment, P is the loan amount, r is the monthly interest rate, and n is the number of monthly payments.
Step-by-step calculation
- Subtract your down payment and any trade-in value from the vehicle price to get the amount financed.
- Convert the annual interest rate to a monthly rate.
- Apply the standard loan amortization formula to solve for the fixed monthly payment.
Worked example
A $32,000 vehicle with a $4,000 down payment and $2,000 trade-in, financed at 6.5% over 60 months: Loan amount = 32,000 − 4,000 − 2,000 = $26,000. Monthly payment ≈ $509.
Frequently asked questions
Does this include sales tax?
No — this calculator estimates payment based on the amount financed. If tax is rolled into your loan, add it to the vehicle price first; if paid separately, you can leave it out.
How does loan term affect total cost?
A longer term lowers the monthly payment but increases total interest paid over the life of the loan, since the balance takes longer to pay down and accrues interest for more months.