Auto Loan Payment
Calculate monthly payment, interest and total cost of a car loan.
About Auto Loan Payment
Sales tax is added to the price before subtracting the down payment and trade-in to get the financed amount. The amortization formula spreads that balance with interest over the term. Spreading financing over more months lowers the payment but raises total interest, so the total-cost figure reveals the trade-off.
Formula
Auto Loan Payment
Payment = P x r x (1+r)^n / ((1+r)^n - 1)
- P
- Amount financed after tax, trade-in and down payment
Worked example
With the default values below, Auto Loan Payment returns Amount Financed of $28,100.00. Change any input above and every figure here is recalculated in your browser.
Inputs used
- Vehicle priceminimum 0
- 30,000
- Down paymentminimum 0
- 2,500
- Trade-in valueminimum 0
- 1,500
- Sales taxaccepts 0–20 %
- 7 %
- Interest rateaccepts 0–40 %
- 6 %
- Loan termminimum 1 mo
- 60 mo
Results
- Amount Financed
- $28,100.00
- Monthly Payment
- $543.25
- Total Interest
- $4,495.10
- Total Cost
- $36,595.10
Step by step
- 1Values used
- 2Auto Loan Payment
- 3Amount Financed= 28,100.00
- 4Monthly Payment= 543.25
- 5Total Interest= 4,495.10
- 6Total Cost= 36,595.10
Assumptions and limits
- The result is derived only from the 6 inputs listed above. Anything not among them is not part of the calculation.
- In particular, this calculator does not take inflation, fees or charges or compounding frequency into account.
- Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.
Frequently Asked Questions
How is Auto Loan Payment calculated?
Payment = P x r x (1+r)^n / ((1+r)^n - 1) Sales tax is added to the price before subtracting the down payment and trade-in to get the financed amount. The amortization formula spreads that balance with interest over the term.
Why does Auto Loan Payment matter?
Spreading financing over more months lowers the payment but raises total interest, so the total-cost figure reveals the trade-off.
What values do I need to enter?
This calculator takes 6 inputs: Vehicle price, Down payment, Trade-in value, Sales tax, Interest rate, Loan term. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.