Auto Loan Calculator with Trade-in

This auto loan calculator helps you estimate your monthly payments when including the value of your trade-in vehicle. By entering your loan amount, interest rate, loan term, and trade-in value, you can quickly see how much you'll pay each month and the total interest paid over the life of the loan.

How to Use This Calculator

Using our auto loan calculator with trade-in is simple:

Enter the purchase price of the new vehicle in the "Vehicle Price" field.
Input the estimated value of your trade-in vehicle in the "Trade-In Value" field.
Specify the down payment amount in the "Down Payment" field.
Enter the loan interest rate in the "Interest Rate" field.
Select the loan term in years from the dropdown menu.
Click the "Calculate" button to see your estimated monthly payment and total interest.

The calculator will display your estimated monthly payment and the total interest paid over the life of the loan. You can also view a chart showing the breakdown of your loan payments.

Formula Used

The monthly payment is calculated using the standard auto loan formula:

Monthly Payment = P * (r(1 + r)^n) / ((1 + r)^n - 1)

Where:

P = Principal loan amount (Vehicle Price - Trade-In Value - Down Payment)
r = Monthly interest rate (Annual Interest Rate / 12)
n = Number of payments (Loan Term in Years × 12)

Total interest is calculated by multiplying the monthly payment by the number of payments and subtracting the principal loan amount.

Worked Example

Let's say you're purchasing a new vehicle for $30,000, you have a trade-in worth $5,000, you put down $3,000, and you secure a loan with a 4.5% annual interest rate for 5 years.

Principal loan amount = $30,000 - $5,000 - $3,000 = $22,000
Monthly interest rate = 4.5% / 12 = 0.375% or 0.00375
Number of payments = 5 × 12 = 60
Monthly payment = $22,000 × (0.00375 × (1 + 0.00375)^60) / ((1 + 0.00375)^60 - 1) ≈ $428.50
Total interest = ($428.50 × 60) - $22,000 ≈ $1,770

Using our calculator, you would enter these values and see that your estimated monthly payment is $428.50 and the total interest paid is $1,770.

Frequently Asked Questions

How does including a trade-in affect my monthly payments?

Including a trade-in reduces the principal loan amount, which typically results in lower monthly payments. The more valuable your trade-in, the lower your monthly payment will be.

Is the interest rate the same as the APR?

The interest rate used in this calculator is typically the same as the APR (Annual Percentage Rate) quoted by the lender, assuming no fees or points are involved.

Can I use this calculator for both new and used cars?

Yes, this calculator can be used for both new and used car loans. Simply enter the appropriate values for the vehicle price and trade-in value.

How accurate are the calculations?

This calculator provides an estimate based on the information you provide. For precise figures, consult with your lender or use their official loan calculator.