Auto Loan Payment Calculator
Enter values to calculate your auto loan payment.
Calculation Details
- Tax Amount: Vehicle Price × (Sales Tax Rate / 100)
- Total Cost: Vehicle Price + Tax Amount + Other Fees
- Loan Principal: Total Cost − (Down Payment + Trade‑In Value)
- Monthly Interest Rate: APR / 100 / 12
-
Monthly Payment (if APR > 0):
P × [r(1 + r)n] / [(1 + r)n − 1]
Monthly Payment (if APR = 0): P / n - Total Payment: Monthly Payment × Number of Months
- Total Interest: Total Payment − Loan Principal
Auto Loan Payment Calculator: How to Calculate Car Payments
How Auto Loan Payments Work
Auto loan payments are calculated using amortization formulas that account for:
- Principal amount
- Annual interest rate
- Loan term (months)
- Down payment
- Trade-in value
Monthly Payment Formula
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]
- M: Monthly payment
- P: Principal loan amount
- i: Monthly interest rate (annual rate ÷ 12)
- n: Total number of payments
Factors Affecting Car Payments
Factor | Impact on Payment | Example Change |
---|---|---|
Loan Term Extension | Reduces monthly payment | 60mo → 72mo (-$75/mo) |
Credit Score Improvement | Lowers interest rate | 7% → 5% (-$45/mo) |
Step-by-Step Calculation
Example: $30,000 Loan at 6% for 60 Months
- Convert APR to monthly rate: 6% ÷ 12 = 0.005
- Calculate (1 + i)^n: (1.005)^60 ≈ 1.34885
- Multiply principal by rate: 30,000 × 0.005 = 150
- Final calculation: 150 × 1.34885 / (1.34885 - 1) ≈ $579.98/mo
Comparison: Loan Terms vs Payments
Loan Amount | 36 Months | 48 Months | 60 Months |
---|---|---|---|
$20,000 | $608 | $469 | $387 |
7 Tips for Better Auto Loans
- Maintain credit score above 700
- Keep loan term under 60 months
- Make at least 20% down payment
FAQs
Q: How does down payment affect payments?
A: $5,000 down on $30k loan reduces monthly payment by ≈$93 (60mo @5%)
Q: Are online calculators accurate?
A: Yes, within 1-2% of actual lender quotes