Auto Loan Calculator

Q: What is the difference between a down payment and a trade-in?

A down payment is the cash you pay upfront toward the vehicle's price. A trade-in is the value of a vehicle you are giving to the dealership as part of the transaction. Both serve the same primary purpose: to reduce the total amount you need to finance, which in turn lowers your monthly loan payments.

Get a clear and accurate estimate of your monthly car payment in seconds.

1. Vehicle Price

Enter the total price of the vehicle.

2. Down Payment

Enter a dollar amount or percentage. A larger down payment can lower your interest rate.

3. Trade-in Value

Enter the value of your trade-in vehicle. This amount reduces your loan principal.

4. Loan Term

Shorter terms save you money on interest.

5. Interest Rate (APR)

Enter your estimated Annual Percentage Rate.

Include Sales Tax & Fees

Master Your Auto Loan Budget

An auto loan is a major financial decision, and our calculator is the perfect first step to navigating it with confidence. This free tool removes the guesswork, giving you a precise estimate of your monthly payment and the total cost of your loan. By understanding how factors like your down payment, interest rate, and loan term affect your payments, you can build a budget that works for you and negotiate better terms at the dealership.

How to Use the Auto Loan Calculator

Get a comprehensive breakdown of your auto loan with these simple steps:

Step 1: Enter Vehicle Price: Start with the full sticker price of the car. This is your baseline loan amount.
Step 2: Add Down Payment: Input how much cash you're paying upfront. A larger down payment reduces your loan amount and can often help you secure a lower interest rate.
Step 3: Include Trade-in Value: If you're trading in your current vehicle, enter its value here. This amount is subtracted directly from the price.
Step 4: Select Loan Term: Choose your desired loan length. Remember, a shorter term means higher payments but significantly less interest paid over time.
Step 5: Enter Interest Rate (APR): Input the Annual Percentage Rate you anticipate. Your credit score is the primary factor influencing this rate.
Step 6 (Optional): Include Taxes & Fees: For the most accurate estimate, toggle this option on to add sales tax, title, and registration fees to the total loan amount.

After you click "Calculate," the tool will instantly display your estimated monthly payment, a visual breakdown of costs, and a complete month-by-month amortization schedule.

Frequently Asked Questions

How is my auto loan interest rate determined?

Your auto loan interest rate (APR) is primarily determined by your credit score. A higher score signifies lower risk to lenders, resulting in a lower APR. Other contributing factors include the length of the loan term, the vehicle's age (new vs. used), your down payment amount, and current economic conditions.

What is the difference between a down payment and a trade-in?

A down payment is the cash you pay upfront toward the vehicle's price. A trade-in is the value of a vehicle you are giving to the dealership as part of the transaction. Both serve the same primary purpose: to reduce the total amount you need to finance, which in turn lowers your monthly loan payments.

Should I choose a longer loan term for a lower payment?

While a longer loan term (like 72 or 84 months) will reduce your monthly payment, it will also cause you to pay significantly more in total interest over the life of the loan. For long-term savings, it is financially better to choose the shortest loan term with a monthly payment that you can comfortably afford.

How much car can I really afford?

Financial experts often recommend the 20/4/10 rule for car buying. This means making a 20% down payment, financing the car for no more than 4 years (48 months), and keeping your total monthly transportation costs (including payment, insurance, and fuel) under 10% of your gross monthly income. Our calculator can help you test different scenarios to align with this rule.