Calculate car & vehicle loan EMI " monthly installment, interest and total cost
A vehicle finance (auto loan) calculator helps you determine the monthly payments, total interest, and total cost of financing a new or used car, motorcycle, or RV. It factors in the vehicle price, trade-in value, down payment, interest rate, and sales tax.
The total amount to be financed is calculated as:
Financed Amount = (Vehicle Price + Sales Tax + Fees) − (Down Payment + Trade-In Value)
The monthly payment is then calculated using the standard amortization formula over the chosen loan term (usually 36, 48, 60, or 72 months).
Amount Financed: $20,000
Monthly Payment: $377.42
Total Interest: $2,645.48
Total Paid: $27,645.48
Shorter terms (36-48 months) have higher monthly payments but lower interest rates and total cost. Longer terms (72-84 months) lower your monthly payment but significantly increase the total interest paid and risk putting you "underwater" (owing more than the car is worth).
In most US states, sales tax is applied only to the difference between the new car price and the trade-in value. This means a trade-in can save you money on taxes.
Most modern auto loans do not have prepayment penalties, meaning you can pay extra principal each month to pay off the loan faster and save on interest. Always check your specific loan terms.