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 works out the monthly payment on a car loan, taking the car price, down payment, trade-in value and sales tax into account. It also checks your down payment against the 20/4/10 rule.
How to use the auto loan calculator
Enter the car price, down payment, trade-in value, sales tax rate, annual interest rate and number of years, then click Calculate. The calculator shows the loan amount and the monthly payment.
Auto loan formula
Loan = (Price − Down − Trade-in) × (1 + tax). The monthly payment then uses the loan formula M = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1).
Example
A $20,000 car with a $2,000 down payment, no trade-in and 5% sales tax gives a loan of $18,900.00. At 6% per year over 5 years the monthly payment is $365.39. The 20/4/10 check notes that 20% down would be $4,000.
Frequently Asked Questions
What is the monthly payment on a $20,000 car with $2,000 down at 6% for 5 years?
The monthly payment is $365.39. Try it on the calculator above.
How much do I borrow for a $20,000 car with $2,000 down and 5% tax?
You borrow $18,900.00: ($20,000 − $2,000) × 1.05.
What is the 20/4/10 rule?
The 20/4/10 rule suggests putting at least 20% down, taking a loan of no more than 4 years and keeping the payment at no more than 10% of your monthly income.
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