Use the result for a focused comparison.
- Compare vehicles using the amount financed and total borrowing cost, not only the advertised monthly payment.
- Test how a larger down payment or shorter term changes both the payment and lifetime interest.
- Separate the loan estimate from recurring ownership costs such as insurance, fuel, servicing, registration renewals, and parking.
Formula and calculation method.
Financed amount = price + tax + fees − down payment − trade-in; M = P × i ÷ [1 − (1 + i)⁻ⁿ]The calculator first estimates the amount financed. It then applies the standard fixed-rate amortization formula, where P is financed principal, i is the monthly rate, and n is the number of monthly payments.
Follow the numbers in context.
$32,000 price, $4,000 down, $3,000 trade-in, 6% tax, $500 fees, 6.5% for 60 months
Working: $27,420 is financed and amortized over 60 equal monthly payments.
Result: About $536.50 per month, with approximately $4,770 in total interest.
Interpretation: The down payment and trade-in reduce principal, while financed tax and fees increase it. Dealer or lender figures can differ because tax treatment and fee timing vary.
Read the estimate with its assumptions.
The monthly result is the scheduled principal-and-interest payment for the estimated financed amount. It is not the complete monthly cost of owning the vehicle.
A longer term usually lowers the monthly payment but keeps the balance outstanding longer, which can increase total interest and the risk of owing more than the vehicle is worth.
What the model includes—and leaves out.
- Fixed nominal annual rate divided into 12 monthly periods.
- Equal monthly payments with no balloon amount.
- Sales tax is applied to the entered vehicle price before credits.
- All entered fees are financed.
Taxable price, trade-in treatment, registration charges, dealer fees, rebates, and lender compounding vary by country and jurisdiction. This planning estimate is not a credit offer or finance disclosure; compare the lender’s APR, amount financed, total of payments, and contract terms.
Unusual inputs need extra care.
The financed amount is divided evenly by the number of months.
The calculator stops rather than displaying a negative loan.
Terms above 120 months are rejected because they are outside the supported planning range.
Questions about this calculation.
Does the auto loan payment include insurance?
No. The result covers the modeled loan payment only. Insurance, fuel, maintenance, and recurring registration costs are separate.
Should I enter the interest rate or APR?
Enter the note rate used for the scheduled payment. APR may include certain finance charges and is useful for comparing offers, but it may not reproduce the payment when entered as the note rate.
How does a trade-in affect the estimate?
The entered trade-in credit reduces the amount financed. Actual tax treatment and any existing trade-in loan balance depend on the transaction and jurisdiction.
Why is the dealer payment different?
A quote may use different taxable amounts, fees, rebates, payment timing, add-ons, or lender rounding. Use the signed disclosure for the binding figures.