Why use this calculator
An auto loan calculator helps you budget for a car purchase and compare financing options before visiting the dealership.
How to use it
Enter the vehicle price, down payment, trade-in value, interest rate, and loan term to see your monthly payment.
The formula
Same amortization formula as standard loans: M = P × [r(1+r)^n] / [(1+r)^n - 1].
Worked examples
$35,000 car with $5,000 down at 5.9% for 5 years
Monthly payment of $580.83
When people use it
- Car shopping budget planning
- Comparing dealer financing
- Deciding between new and used
Tips
- Shorter loan terms save thousands in interest
- Get pre-approved before visiting dealerships
- Total cost of ownership includes insurance, maintenance, and fuel
Questions people ask
- How long should my car loan be?
- 3-5 years is ideal. Longer loans (6-7 years) have lower payments but much more interest, and you risk being upside-down on the loan.