How the auto loan calculator works
We take the amount you actually finance (vehicle price minus your down payment and any trade-in value) and spread it over your loan term using the standard amortization formula. Each monthly payment is the same and covers both interest and principal.
M = P · [ i(1+i)ⁿ ] / [ (1+i)ⁿ − 1 ]
P = amount financed · i = monthly rate (APR ÷ 12) · n = number of months (years × 12)
What it does not include
This shows principal and interest only. Your real out-the-door cost may also include sales tax, title, registration, dealer fees, and optional add-ons. Many buyers roll some of these into the loan, which raises the amount financed.
Frequently asked questions
What car loan term should I choose?
A shorter term means higher monthly payments but far less total interest. Longer terms (72 or 84 months) lower the payment but cost more overall and increase the risk of owing more than the car is worth. Try different terms above to compare.
Does a trade-in lower my payment?
Yes. A trade-in works like extra down payment: it reduces the amount you finance, which lowers both the monthly payment and the total interest.
Can I lower my rate later?
Often, yes. If rates drop or your credit improves, refinancing the remaining balance at a lower rate can reduce your monthly payment without changing the car.
How much should I put down?
A larger down payment lowers your payment and total interest and reduces the chance of being "underwater." Many advisors suggest at least 10–20% down on a vehicle.
Estimates only, not financial advice. Confirm figures with your lender or dealer.