Our auto loan calculator helps you estimate your monthly car loan payments. Here's how to use it effectively:

What You Need to Know

• Vehicle Price: The purchase price of the car you're considering.
• Down Payment: The amount of money you plan to pay upfront. A larger down payment can reduce your loan amount and monthly payments.
• Trade-In Value: The value of your current vehicle if you plan to trade it in.
• Interest Rate: The annual interest rate on your auto loan. This rate affects how much you'll pay over the life of the loan.
• Loan Term: The number of months you'll take to repay the loan. Common terms are 36, 48, 60, and 72 months.
• Sales Tax Rate: The percentage of sales tax charged in your state or locality.

How the Calculator Works

The calculator uses the following steps to determine your monthly payment:

1. Calculates the taxable amount: Vehicle Price - Down Payment - Trade-In Value
2. Adds sales tax to the taxable amount
3. Uses the standard loan payment formula to calculate monthly payments:

M = P [ i(1 + i)^n ] / [ (1 + i)^n - 1 ]

• M = Monthly payment
• P = Principal loan amount (after tax)
• i = Monthly interest rate (annual rate divided by 12)
• n = Number of monthly payments

Understanding Your Results

• Adjusted Loan Amount: The final loan amount after accounting for down payment, trade-in, and sales tax.
• Monthly Payment: The amount you'll pay each month for the duration of the loan term.
• Total Interest Paid: The total amount of interest you'll pay over the life of the loan.
• Total Amount Paid: The sum of principal and interest paid over the life of the loan.

Tips for Getting Accurate Results

1. Research current interest rates for auto loans based on your credit score.
2. Get an accurate trade-in value estimate from multiple sources.
3. Check your local sales tax rate for vehicle purchases.
4. Remember that this calculator provides estimates. Actual payments may vary based on additional fees.
5. Consider shorter loan terms if possible, as they typically result in less total interest paid.

Common Auto Loan Terms to Know

• APR (Annual Percentage Rate): The true cost of borrowing money, including interest and fees.
• Principal: The original amount of money borrowed, excluding interest.
• Amortization: The process of paying off a loan with regular payments over time.
• Prepayment Penalty: A fee charged by some lenders if you pay off your loan early.
• Negative Equity: Owing more on your current loan than the vehicle is worth (also called being "upside down").
• GAP Insurance: Insurance that covers the difference between what you owe and what your vehicle is worth if it's totaled.