Auto Loan Calculator with Trade 84 Months

How to Use This Calculator

Using this auto loan calculator with trade is simple:

1. Enter the purchase price of the new vehicle in the "Loan Amount" field.
2. Enter the estimated value of your trade-in vehicle in the "Trade-In Value" field.
3. Input your loan term in months (up to 84 months).
4. Enter your annual interest rate (APR).
5. Click "Calculate" to see your estimated monthly payment, total interest, and total cost.

The calculator will show you a breakdown of your loan, including the adjusted loan amount after applying your trade-in value, your monthly payment, total interest paid over the loan term, and the total cost of the loan.

Formula Used

The auto loan calculator uses the standard loan payment formula:

Where the principal loan amount is calculated as:

Total interest paid is calculated as:

Total cost of the loan is simply the sum of the principal loan amount and the total interest paid.

Worked Example

Let's say you want to buy a new car for $30,000, and you can trade in your current car for $5,000. You secure a loan with an 84-month term and a 5% annual interest rate. Here's how the calculation works:

1. Principal loan amount = $30,000 - $5,000 = $25,000
2. Monthly interest rate = 5% / 12 = 0.4167%
3. Number of payments = 84
4. Monthly payment = $25,000 [ 0.004167(1 + 0.004167)^84 ] / [ (1 + 0.004167)^84 - 1 ] ≈ $330.50
5. Total interest paid = ($330.50 × 84) - $25,000 ≈ $1,430.80
6. Total cost of loan = $25,000 + $1,430.80 ≈ $26,430.80

Using our calculator, you would enter $30,000 as the loan amount, $5,000 as the trade-in value, 84 as the loan term, and 5 as the interest rate to get these results.