Car Loan Calculator
Shopping for a car loan without knowing the real numbers? Skip the dealership drama with our auto loan calculator that gives you the power to estimate your monthly payments before any lender tries to saddle you with terms that benefit them, not you.
Input your vehicle price, loan term, interest rate, down payment, trade-in value, and sales tax rate to get accurate monthly payment estimates that help you budget with confidence.
As experienced auto brokers, we’ve watched dealerships and lenders push buyers into longer terms with higher rates than they qualify for. Use our car finance calculator to set realistic expectations, then let our expert auto brokers secure better rates and terms while you skip the financing office pressure tactics entirely. When you know what you should be paying, nobody can convince you to pay more than you should.
Important Disclaimer
This auto finance calculator provides estimates only and assumes excellent credit. Actual loan payments can vary significantly based on numerous factors including lender-specific rates, manufacturer financing incentives, dealer reserve markups, loan origination fees, extended warranty costs, and your individual credit profile. Use these estimates as a starting point for negotiations, not as guaranteed payment amounts.
How Our Loan Calculator
Estimates Your Monthly Payment
Most buyers have no idea how auto loan payments are actually calculated and lenders prefer keeping you in the dark. Our car loan calculator breaks down the math so you can identify overpriced financing offers before signing anything.
Let’s walk through a real example using a $45,000 vehicle purchase in California. Say you negotiate the price down to $42,000, put $7,000 down, and have a trade-in worth $5,000. The lender offers you a 6.5% APR on a 60-month auto loan.
Step 1: Calculate Your Total Loan Amount
Start with your negotiated price and subtract your down payment and trade-in value: $42,000 – $7,000 – $5,000 = $30,000
Add California’s average sales tax of 8.75%: $30,000 × 0.0875 = $2,625
Your total financed amount is: $30,000 + $2,625 = $32,625
Step 2: Convert Your APR to Monthly Rate
Divide your annual percentage rate by 12: 6.5% ÷ 12 = 0.542% or 0.00542
Step 3: Apply the Auto Loan Formula
Use the standard loan payment formula:
Monthly Payment = P × [r(1+r)^n] / [(1+r)^n – 1]
Where P = $32,625, r = 0.00542, n = 60 months
$32,625 × [0.00542(1.00542)^60] / [(1.00542)^60 – 1] = $634.89
Your estimated monthly payment would be $634.89, with total interest paid of $5,468.40 over the life of the loan.
This car finance calculator breakdown shows you exactly where every dollar goes, so you can negotiate from a position of strength instead of hoping the dealer is giving you their “best” rate.
