Auto Loan Calculator
Car payment with tax, down payment and trade-in, plus a 20/4/10 check.
What is an auto loan calculator?
An auto loan calculator finds the monthly car payment after down payment, trade-in and sales tax. Example: a $20,000 car with $2,000 down and 5% tax gives a loan of $18,900, and at 6% for 5 years the payment is $365.39 per month.
How to use it
Enter the car price, down payment, trade-in value, sales tax, annual rate and years, then tap Calculate.
Formula
Loan = (Price − Down − Trade-in) × (1 + tax). Monthly payment = P × r × (1+r)^n ÷ ((1+r)^n − 1), where r is the monthly rate and n is the number of payments. For this example, Loan = (20,000 − 2,000) × 1.05 = $18,900, and the payment at 6% for 5 years is $365.39.
Frequently Asked Questions
What is the monthly payment on an $18,900 auto loan at 6% for 5 years? $365.39.
How is the loan amount found? (Price − Down − Trade-in) × (1 + tax). For $20,000 with $2,000 down and 5% tax, that is $18,900.
What is the 20/4/10 rule? Put 20% down, take a loan of 4 years or less, and keep total car costs under 10% of gross income. For a $20,000 car, 20% down is $4,000.