What Is Car Loan Calculator?
A car loan calculator is a powerful financial tool designed to help you understand the true cost of auto financing. Whether you want to determine your monthly payment for a specific vehicle or find out how much car you can afford with your budget, this calculator provides accurate estimates by considering all the factors that affect your auto loan.
How It Works 🚗
Our car loan calculator operates in two modes, each serving different financial planning needs:
Monthly Payment Mode
Calculate your monthly payment when you know the vehicle price. Input the car price, loan terms, and other details to see your estimated monthly payment.
Total Price Mode
Determine the maximum vehicle price you can afford based on your desired monthly payment. Perfect for setting realistic budgets.
Car Loan Calculation Formula
The calculator uses standard amortization formulas to determine your monthly payment and total loan cost.
Monthly Payment Formula
Monthly Payment = P × [r(1 + r)ⁿ] / [(1 + r)ⁿ - 1]
Where: P = Principal loan amount, r = Monthly interest rate, n = Total number of payments
Total Price Calculation
When calculating the maximum vehicle price you can afford:
- With taxes and fees included in loan: The calculator accounts for sales tax and registration fees in the loan amount
- With taxes and fees paid upfront: Only the vehicle price is financed, reducing your total loan amount
Key Input Factors
Vehicle & Loan Details
- Auto Price: The total cost of the vehicle before any discounts
- Loan Term: Duration of the loan in months (typically 36-84 months)
- Interest Rate: Annual percentage rate (APR) for the loan
- Cash Incentives: Manufacturer rebates or dealer discounts
Financial Factors
- Down Payment: Initial cash payment to reduce loan amount
- Trade-in Value: Value of your current vehicle as trade-in
- Sales Tax: State-specific tax rate on vehicle purchase
- Registration Fees: Title, registration, and other state fees
Why Use Our Car Loan Calculator?
- Accurate Estimates: Get precise monthly payment calculations using industry-standard formulas
- Budget Planning: Determine the maximum vehicle price you can afford before visiting dealerships
- Complete Cost Analysis: Includes all factors: taxes, fees, trade-ins, and cash incentives
- Comparison Tool: Compare different loan terms and down payment scenarios
- State-Specific Calculations: Automatically applies correct tax rates for your state
Step-by-Step Guide
Step 1: Choose Your Mode
Select “Monthly Payment” to calculate payments for a specific vehicle, or “Total Price” to find your maximum affordable vehicle price.
Step 2: Enter Vehicle Information
Input the vehicle price, your desired loan term, and the interest rate you expect to receive from your lender.
Step 3: Add Financial Details
Include your down payment, trade-in value, cash incentives, and select your state for accurate tax calculations.
Step 4: Choose Tax Options
Decide whether to include taxes and fees in your loan or pay them upfront, which affects your total loan amount.
Step 5: Get Your Results
Click “Calculate” to see your monthly payment, total loan cost, and complete payment breakdown.