loanAmount (88%)
totalInterest (12%)
formulaTitle
M = P × r / (1 − (1 + r)^−n)
formulaDesc
What is an auto loan calculator?
An auto loan calculator estimates the monthly payment you would make when financing a car, along with how much interest you pay over the life of the loan. You enter the vehicle price and how much you pay up front through a down payment or a trade-in, choose the loan term in months and the annual interest rate, and the calculator returns the amount actually financed, the monthly payment, the total of all payments and the total interest. Optional fields let you add sales tax (charged on the price) and any extra fees that get rolled into the loan. Comparing different terms and rates side by side makes it easy to see how a longer term lowers the monthly payment but raises the total interest you pay.
How to use it
1. Enter the vehicle price.
2. Enter your down payment and any trade-in value — these reduce the amount you finance.
3. Set the loan term in months and the annual interest rate.
4. Optionally add a sales-tax percentage and any other fees.
The monthly payment, amount financed, total interest and total cost update instantly so you can compare scenarios.
Formula and definition
The amount financed is:
P = price + sales tax + fees − down payment − trade-in
The fixed monthly payment uses the amortizing-loan (annuity) formula:
M = P × r / (1 − (1 + r)^−n)
where r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the number of months. The total of payments is M × n, and the total interest is that total minus P. For example, financing 2,500,000 over 60 months at 5% gives a monthly payment of about 47,178.
Reading your results
The monthly payment is what you would pay each month for the whole term. The total interest shows the true cost of borrowing on top of the amount financed — a longer term usually means a smaller monthly payment but more interest overall. A larger down payment or trade-in lowers the amount financed and therefore both the payment and the interest. Remember that the figures here are estimates: an actual offer may bundle in insurance, registration, dealer add-ons or a different compounding method, and the advertised rate (APR) may include fees that change the effective cost.
Frequently asked questions
What is the difference between the price and the amount financed? ▾
The price is the sticker cost of the vehicle. The amount financed is what you actually borrow: the price plus any sales tax and fees, minus your down payment and trade-in. Interest is charged only on the amount financed.
Does a longer loan term save me money? ▾
A longer term lowers the monthly payment but increases the total interest you pay, because you owe the balance for more months. A shorter term costs more per month but less overall.
Should I include sales tax and fees? ▾
If your lender rolls tax and fees into the loan, include them so the amount financed and payment are accurate. If you pay them separately up front, leave those fields at zero.
Is the interest rate the same as the APR? ▾
Not always. The interest rate is used to compute the payment, while the APR also reflects certain fees, so the APR can be slightly higher. This calculator uses the interest rate you enter.
This calculator provides general estimates for educational purposes only and is not financial advice. Actual loan offers depend on your credit, the lender, taxes and fees, and may use different terms or compounding. Confirm figures with your lender before making a decision.