This auto payment calculator calculates your car loan monthly payment (trade in allowance and sales tax can be considered), its payoff date and an amortization schedule presenting the total paid and total cost with interest. There is more information on this subject below the application form.

Car acquisition price: *
Down payment:
Auto loan term: *
Interest rate: *
Trade in allowance value:
Sale tax rate:
Auto loan start date: *

How does this auto payment calculator work?

This financial tool can help you simulate an auto loan repayment schedule and figuring out its monthly payment, which means that it allows you compare between multiple car loan offers.

The variables that are considered in this calculation and that need to be provided are:

  • Car price which is the purchase price.
  • Down payment represents the amount of money you have available for a deposit when buying the car;
  • Auto loan term that can be specified either in years or months and has an impact on the level of the monthly payment;
  • Interest rate is the cost of the money taken;
  • Trade in value is the discount the producer or seller of the car offers to the buyer in order to stimulate the acquisition of the car.
  • Tax rate where applicable.
  • Auto loan start date that is further on used to determine the payoff date.

The algorithm behind this auto payment calculator uses the standard loan formula to forecast the figure of the total paid, monthly payment level and the moment when you will be debt free.

Example of a calculation

Let’s assume that an individual decides to purchase a new car by taking a loan with the following characteristics:

Vehicle price = $20,000

Down payment = $5,000

Auto loan term = 60 months

Interest rate = 5%

Discount rate = $1,000

Sales tax = 1%

Start date is April, 2015

Monthly Payment $267.97
Auto loan amount borrowed $14,200.00
Total paid $16,078.29
Total interest paid $1,878.29
No. of monthly payments 60
Auto Loan Start Date Apr, 2015
Auto loan Payoff Date Mar, 2020
Car price $20,000.00
Down payment $5,000.00
Trade in allowance $1,000.00
Sale Tax $200.00

Few things to look at if you want to get the best car loan offer …

  • Check the effective annual interest rate you are requested to pay as stated in each offer. And so try to compare between multiple offers by a comparable interest rate. To do that you may need to convert interest rates to comparable quotes;
  • Look for any hidden costs and fees;
  • Assess how attractive car loan plans are by considering the same length in time, otherwise your analysis may not be relevant;
  • Compare the trade in allowance offered. The higher the discount is the better so that you will borrow less money;
  • Ask for the minimum down payment required.

07 Apr, 2015