Auto Loan Calculator with Trade Payoff
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Reviewed by Calculator Editorial Team
This auto loan calculator helps you determine your monthly payments when factoring in the value of your trade-in vehicle. Simply enter your loan details and trade-in value to get an accurate estimate of your new auto loan payments.
How to Use This Calculator
Using this auto loan calculator with trade payoff is simple:
- Enter the purchase price of the new vehicle
- Input the value of your trade-in vehicle
- Specify the loan term in years
- Enter the interest rate (APR)
- Click "Calculate" to see your estimated monthly payment
The calculator will subtract your trade-in value from the purchase price to determine the loan amount, then calculate your monthly payment based on the interest rate and loan term.
Formula Used
Loan Amount
Loan Amount = Purchase Price - Trade-In Value
Monthly Payment
Monthly Payment = P × (r(1 + r)^n) / ((1 + r)^n - 1)
Where:
- P = Loan Amount
- r = Monthly Interest Rate (APR/12/100)
- n = Number of Payments (Loan Term × 12)
This formula uses the standard loan payment calculation method that accounts for both the principal and interest over the life of the loan.
Worked Example
Let's say you're purchasing a new car for $25,000 and you have a trade-in worth $5,000. You're taking out a 4-year loan at 4.5% APR.
- Loan Amount = $25,000 - $5,000 = $20,000
- Monthly Interest Rate = 4.5%/12 = 0.00375
- Number of Payments = 4 × 12 = 48
- Monthly Payment = $20,000 × (0.00375(1 + 0.00375)^48) / ((1 + 0.00375)^48 - 1) ≈ $422.50
Your estimated monthly payment would be $422.50.
Frequently Asked Questions
How does the trade-in value affect my loan amount?
The trade-in value is subtracted from the purchase price to determine the loan amount. A higher trade-in value means you'll need to borrow less money, which can lower your monthly payments.
Is the interest rate the APR or the monthly rate?
The calculator uses the Annual Percentage Rate (APR). The calculator converts this to a monthly rate for the payment calculation.
Can I use this calculator for refinancing?
Yes, you can use this calculator for refinancing by entering the remaining balance of your current loan as the trade-in value.
Does this calculator account for taxes and fees?
No, this calculator provides an estimate of the loan payment amount only. Additional taxes, fees, and other costs may apply.