Auto Loan Calculator Guide

Financing a vehicle involves more than just the sticker price. Use this Auto Loan Calculator to estimate your monthly payment and understand the total cost of borrowing, including interest.

How to Use This Calculator

Vehicle Price: The negotiated price of the car.
Down Payment: Cash paid upfront.
Trade-In Value: Value of your current vehicle if exchanging.
Interest Rate (APR): The annual percentage rate of the loan.
Loan Term: Duration of the loan (e.g., 36, 48, 60, 72 months).

Worked Examples

Example 1: New Car Purchase

Scenario: David is buying a new SUV for $40,000. He puts $5,000 down and trades in his old car for $3,000. He gets a 60-month loan at 5%. Inputs: Price: $40,000 Down + Trade: $8,000 Loan Amount: $32,000 Rate: 5% Term: 60 Months Results: Monthly Payment: ~$604 * Total Interest Paid: ~$4,200

Example 2: Used Car Deal

Scenario: Lisa buys a used sedan for $15,000. She puts $2,000 down but has a lower credit score, receiving a 9% APR for 48 months. Inputs: Price: $15,000 Down: $2,000 Loan Amount: $13,000 Rate: 9% Term: 48 Months Results: Monthly Payment: ~$323 * Total Interest Paid: ~$2,500 (nearly 20% of the loan value!)

Common Mistakes to Avoid

Focusing Only on Monthly Payment: Dealers may extend the loan term (e.g., to 84 months) to lower payments, but you pay much more in interest. Ignoring Total Cost: Always look at the "Total Loan Cost" to see how much the car is really costing you.

Glossary

APR (Annual Percentage Rate): The yearly interest rate you’ll be charged. Upside Down: When you owe more on the car loan than the car is worth (Negative Equity). * Term: The length of the loan contract.

Auto Loan Calculator

Inputs

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Calculated by CalcuFinance Team

Sources & References