Car Loan Payment Calculator
Use this calculator to estimate your monthly car loan payments, total loan amount, and the total interest you'll pay over the life of the loan. Simply enter the car's price, your down payment, any trade-in value, the sales tax rate, the interest rate, and the loan term in months.
Your Estimated Car Loan Details:
Total Loan Amount: $0.00
Estimated Monthly Payment: $0.00
Total Interest Paid: $0.00
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function calculateCarLoan() {
var carPrice = parseFloat(document.getElementById('carPrice').value);
var downPayment = parseFloat(document.getElementById('downPayment').value);
var tradeInValue = parseFloat(document.getElementById('tradeInValue').value);
var salesTaxRate = parseFloat(document.getElementById('salesTaxRate').value);
var interestRate = parseFloat(document.getElementById('interestRate').value);
var loanTerm = parseFloat(document.getElementById('loanTerm').value);
// Input validation
if (isNaN(carPrice) || carPrice <= 0) {
alert('Please enter a valid Car Price.');
return;
}
if (isNaN(downPayment) || downPayment < 0) {
alert('Please enter a valid Down Payment.');
return;
}
if (isNaN(tradeInValue) || tradeInValue < 0) {
alert('Please enter a valid Trade-in Value.');
return;
}
if (isNaN(salesTaxRate) || salesTaxRate < 0) {
alert('Please enter a valid Sales Tax Rate.');
return;
}
if (isNaN(interestRate) || interestRate < 0) {
alert('Please enter a valid Interest Rate.');
return;
}
if (isNaN(loanTerm) || loanTerm = carPrice) {
alert('Down Payment and Trade-in Value cannot be greater than or equal to the Car Price. You might not need a loan!');
document.getElementById('totalLoanAmountResult').innerText = '$0.00';
document.getElementById('monthlyPaymentResult').innerText = '$0.00';
document.getElementById('totalInterestPaidResult').innerText = '$0.00';
return;
}
// Calculate Taxable Amount (Car Price – Trade-in Value)
var taxableAmount = carPrice – tradeInValue;
if (taxableAmount < 0) taxableAmount = 0; // Cannot have negative taxable amount
// Calculate Sales Tax
var salesTax = taxableAmount * (salesTaxRate / 100);
// Calculate Amount to Finance (before tax)
var amountToFinanceBeforeTax = carPrice – downPayment – tradeInValue;
if (amountToFinanceBeforeTax < 0) amountToFinanceBeforeTax = 0; // Should not be negative
// Total Loan Amount (Principal)
var principal = amountToFinanceBeforeTax + salesTax;
if (principal < 0) principal = 0; // Ensure principal is not negative
var monthlyInterestRate = (interestRate / 100) / 12;
var monthlyPayment = 0;
var totalInterestPaid = 0;
if (monthlyInterestRate === 0) {
// Simple interest calculation if rate is 0
monthlyPayment = principal / loanTerm;
totalInterestPaid = 0;
} else {
// Standard loan payment formula
var numerator = principal * monthlyInterestRate * Math.pow((1 + monthlyInterestRate), loanTerm);
var denominator = Math.pow((1 + monthlyInterestRate), loanTerm) – 1;
monthlyPayment = numerator / denominator;
totalInterestPaid = (monthlyPayment * loanTerm) – principal;
}
document.getElementById('totalLoanAmountResult').innerText = '$' + principal.toFixed(2);
document.getElementById('monthlyPaymentResult').innerText = '$' + monthlyPayment.toFixed(2);
document.getElementById('totalInterestPaidResult').innerText = '$' + totalInterestPaid.toFixed(2);
}
Understanding Your Car Loan
A car loan is a secured loan used to purchase a vehicle, with the car itself serving as collateral. This means if you fail to make payments, the lender can repossess the car. Understanding how your car loan works is crucial for managing your finances effectively.
Key Factors Affecting Your Car Loan:
- Car Price: The sticker price of the vehicle is the starting point.
- Down Payment: The initial amount of money you pay upfront. A larger down payment reduces the amount you need to borrow, leading to lower monthly payments and less interest paid over time.
- Trade-in Value: If you're trading in an old vehicle, its value is deducted from the car's price, similar to a down payment, reducing the amount to be financed.
- Sales Tax: Most states charge sales tax on vehicle purchases. This tax is typically added to the total amount financed unless you pay it out of pocket. Our calculator assumes it's financed.
- Interest Rate: This is the cost of borrowing money, expressed as a percentage. A lower interest rate means lower monthly payments and less total interest paid. Your credit score, the loan term, and market conditions heavily influence your rate.
- Loan Term: The length of time you have to repay the loan, usually expressed in months (e.g., 36, 48, 60, 72 months). Longer terms mean lower monthly payments but result in more total interest paid over the life of the loan. Shorter terms mean higher monthly payments but less total interest.
How to Use This Calculator:
- Enter Car Price: Input the agreed-upon price of the vehicle.
- Enter Down Payment: Specify the amount you plan to pay upfront.
- Enter Trade-in Value: If applicable, enter the value of your trade-in vehicle.
- Enter Sales Tax Rate: Input the sales tax percentage for your state/locality.
- Enter Interest Rate: Use an estimated or pre-approved annual interest rate.
- Enter Loan Term: Choose your desired loan duration in months.
- Click "Calculate Payment": The calculator will instantly display your estimated total loan amount, monthly payment, and the total interest you'll pay.
Tips for Getting a Good Car Loan:
- Improve Your Credit Score: A higher credit score typically qualifies you for lower interest rates.
- Shop Around for Rates: Don't just accept the dealer's financing. Get pre-approved from banks, credit unions, and online lenders to compare offers.
- Make a Larger Down Payment: This reduces your principal, lowering monthly payments and total interest.
- Consider a Shorter Loan Term: While monthly payments will be higher, you'll pay significantly less interest over time.
- Understand All Costs: Factor in insurance, maintenance, and fuel costs in addition to your loan payment.
This calculator provides estimates and should be used for planning purposes. Actual loan terms and payments may vary based on lender policies, additional fees, and specific loan agreements.