How the Auto Loan Calculator works
Your car loan is based on the amount financed, not the sticker price. We first subtract your down payment and any trade-in value from the vehicle price, then calculate a standard fixed monthly payment on the remaining balance.
A bigger down payment or trade-in reduces the amount financed, which lowers both your monthly payment and the total interest you'll pay over the loan.
Amount Financed = Price − Down Payment − Trade-in
Payment = (P × r) / (1 − (1 + r)^−n)
Remember that this calculator only covers the financed amount — sales tax, title, registration, and dealer fees are not included and will change your actual out-the-door numbers.
Frequently asked questions
A larger down payment doesn't directly change the interest rate a lender offers, but it does reduce the amount you finance — which lowers your monthly payment and total interest. Some lenders also see a larger down payment as lower risk, which can help you qualify for a better rate.
Your trade-in value is subtracted from the vehicle price along with your down payment, reducing the amount you need to finance. A trade-in with an existing loan balance may reduce the benefit if that payoff amount is rolled into your new loan instead.
A shorter term means a higher monthly payment but less total interest, and it helps you avoid being 'upside down' — owing more than the car is worth — later in the loan. If you can afford the higher payment, a shorter term usually saves money overall.
No — this calculator estimates payments based on the amount financed only. Sales tax, title, registration, and dealer fees vary by state and dealership, and are often rolled into the loan amount, which would increase what you actually finance.