Using the Auto Loan Calculator
Use an out-the-door price when building your estimate. Taxes, registration and dealer charges matter if they go into the loan. If you owe money on a trade-in, include any unpaid balance that the new lender finances.
Worked example
Use the example inputs below to reproduce this result. These are the form's starting values, not recommended targets. Changing your inputs updates your result above; this worked example stays fixed for comparison. Results are rounded for display.
Example inputs
- Amount borrowed
- 20000
- Annual interest rate (%)
- 6
- Term (months)
- 60
Example result
- Monthly payment
- 386.66
- Total payments
- 23,199.36
- Total interest
- 3,199.36
Method and assumptions
Fully amortizing loan with equal end-of-month payments, monthly interest and no fees, taxes, insurance or variable-rate changes. All amounts use the same currency.
Compare the whole borrowing commitment
When comparing loan scenarios, change one assumption at a time. First compare terms at the same rate and balance, then compare rates over the same term. This makes it easier to see why the monthly payment changes. Keep any upfront costs alongside the result so that a lower installment does not hide a more expensive agreement.
Common question
How do I include a down payment?
Subtract the down payment from the total purchase cost before entering the amount borrowed. Do the same for a positive trade-in credit, while accounting for any outstanding trade-in loan.
Guide updated .