Planning to buy a new or used car? Use our free Auto Loan Calculator to quickly estimate your monthly car payments, total interest, and the overall cost of your vehicle. Understand how different loan terms, interest rates, down payments, and trade-in values impact your affordability. Make informed financial decisions for your next auto purchase.
Formula:
The monthly payment (M) for a fixed-rate loan is calculated using the formula:
M = P [ i(1 + i)n ] / [ (1 + i)n – 1]
- M = Monthly Payment
- P = Principal Loan Amount (Vehicle Price – Down Payment – Trade-in Value + Sales Tax Amount + Fees)
- i = Monthly Interest Rate (Annual Rate / 12 / 100)
- n = Total number of payments (Loan Term in years × 12)