Auto Loan Calculator

1. Enter the total vehicle price.
2. Set your down payment amount in dollars.
3. Enter the trade-in value of your current vehicle (if any).
4. Enter the annual interest rate (APR).
5. Select a loan term (36, 48, 60, 72, or 84 months).
6. View your monthly payment, loan amount, total cost, and total interest.
7. Expand the amortization schedule for a detailed month-by-month breakdown.

Understanding Auto Loan Calculations

An auto loan is an amortizing loan where each monthly payment includes both principal repayment and interest charges. The loan amount is calculated as: Vehicle Price - Down Payment - Trade-in Value.

The monthly payment is computed using the standard amortization formula. Early in the loan, a larger portion of each payment goes toward interest. As the balance decreases over time, more of each payment goes toward principal. The amortization schedule shows this shift month by month.

Total cost of ownership extends beyond the loan itself. Consider insurance premiums (often higher for newer or more expensive vehicles), fuel costs, maintenance, registration fees, and depreciation when budgeting for a vehicle purchase.