Edmunds Auto Loan Calculator with Trade
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Reviewed by Calculator Editorial Team
This Edmunds Auto Loan Calculator with Trade helps you estimate your monthly car payment when factoring in the value of your trade-in vehicle. Simply enter your loan details and trade-in value to get an accurate monthly payment estimate.
How to Use This Calculator
Using this calculator is simple:
- Enter the purchase price of the new vehicle
- Enter the down payment amount
- Enter the estimated trade-in value of your current vehicle
- Select your loan term (36, 48, or 60 months)
- Enter your estimated annual percentage rate (APR)
- Click "Calculate" to see your estimated monthly payment
The calculator will display your estimated monthly payment, total interest paid, and the total amount financed. You can also view a breakdown of your loan payments over time.
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 (Purchase Price - Down Payment - Trade-in Value)
- r = Monthly interest rate (APR ÷ 12 ÷ 100)
- n = Number of payments (Loan Term in months)
Total Interest Paid = (Monthly Payment × n) - P
Total Amount Financed = P + Total Interest Paid
Worked Example
Let's say you want to buy a new car for $35,000 with a $5,000 trade-in value and a $3,000 down payment. You secure a loan with a 4.5% APR over 60 months (5 years).
Principal loan amount = $35,000 - $5,000 - $3,000 = $27,000
Monthly interest rate = 4.5% ÷ 12 = 0.375% or 0.00375
Number of payments = 60
Monthly Payment = $27,000 × (0.00375(1 + 0.00375)^60) / ((1 + 0.00375)^60 - 1) ≈ $522.50
Total Interest Paid = ($522.50 × 60) - $27,000 ≈ $1,950
Total Amount Financed = $27,000 + $1,950 = $28,950
Frequently Asked Questions
How accurate is this calculator?
This calculator provides an estimate based on the information you provide. Actual loan terms may vary depending on your credit score, the dealer's financing terms, and other factors.
Can I use this calculator for both new and used cars?
Yes, this calculator can be used for both new and used cars. Simply enter the appropriate purchase price and trade-in value for the vehicle you're considering.
What if I don't have a trade-in vehicle?
If you don't have a trade-in vehicle, simply enter $0 for the trade-in value. The calculator will then use only the purchase price and down payment to calculate your monthly payment.