About the Auto Loan Calculator
This Auto Loan Calculator estimates your monthly payment, total interest, and total paid for a vehicle loan. Input the financed amount (vehicle price minus down payment and trade‑in), the APR, and the term in months to see an amortized payment that combines principal and interest. Use it to compare lender offers, evaluate affordability, and choose terms that fit your budget without overpaying in interest.
Auto loans follow an amortization schedule: early payments are interest‑heavy, while later payments shift more to principal. Shorter terms generally mean higher monthly payments but substantially lower total interest, whereas longer terms lower the payment but increase interest cost and the risk of negative equity.
Beyond the payment itself, plan for insurance, registration, maintenance, fuel, and taxes. Focus on the out‑the‑door price rather than monthly payment alone to avoid add‑ons rolled into financing. If you have a trade‑in, confirm whether you have positive or negative equity; rolling negative equity into a new loan raises both payment and total interest.
Key features
- Monthly payment, total interest, and total paid estimates
- Uses standard amortizing loan formula for accuracy
- Scenario testing for APR, term, and down payment
- Helps compare pre‑approval and dealer financing options
- Mobile‑friendly, fast results
How to use
- Enter the financed amount.
- Enter the APR and term in months.
- Review monthly payment, total interest, and total paid.
Formula
Payment = P × [ r(1 + r)n ] / [ (1 + r)n − 1 ], where P is principal, r is monthly rate, n is months.
Variables
| Symbol | Meaning |
|---|---|
| P | Financed amount (price − down payment − trade‑in) |
| r | Monthly interest rate (APR ÷ 12 ÷ 100) |
| n | Loan term in months |
Examples
- Borrowing $30,000 at 6.49% for 60 months yields a fixed payment and clear payoff schedule.
- Lowering APR from 8% to 6% can save thousands in interest over long terms.
- Adding $2,500 to your down payment reduces both the monthly payment and total interest.
Tips
- Get pre‑approved to benchmark APRs before visiting the dealership.
- Avoid extending to very long terms purely to hit a target payment; watch total interest.
- Check for prepayment penalties before making extra principal payments.
- Compare out‑the‑door pricing and avoid unnecessary add‑ons bundled into financing.