Calculator guide
Estimate a vehicle loan payment and the interest cost from the financed price, APR, and term.
Formula or method
The amortizing-payment formula is M = P × r(1+r)^n / ((1+r)^n − 1), with P principal, r monthly APR, and n payments.
How to use this calculator
- Enter the vehicle price, trade-in, and down payment.
- Enter APR and the loan term.
- Compare payment and total interest before budgeting for ownership costs.
Worked example
Financing $24,000 at 7.2% for 60 months gives r=.072/12 and a payment of about $477.45; 60 payments total about $28,647.
Understanding the result
A longer term lowers the payment but usually increases total interest and can leave you owing more than the vehicle is worth.
Limitations and assumptions
- Excludes taxes, registration, dealer fees, insurance, maintenance, and loan-specific fees.
- Assumes a fixed APR and payments made on schedule.
Frequently asked questions
Does a trade-in reduce the loan?
Yes, its net value reduces the amount financed after any payoff balance.
Why does total payment exceed the price?
The difference is primarily interest, plus any financed fees.
Can I use this for a lease?
No. Lease payments use a different residual-value model.
Sources
Educational estimate only; it is not financial advice or a lender quote.