This calculator uses the standard amortization formula where P is the principal loan amount, r is the monthly interest rate (annual rate divided by 12), and n is the total number of payments. It calculates monthly payments, total interest, and payoff timeline.

1. 1

   Enter Vehicle Price

   Input the total purchase price of the vehicle

2. 2

   Subtract Down Payment

   Enter any down payment or trade-in value to reduce loan amount

3. 3

   Set Interest Rate

   Input the annual interest rate (APR) from your lender

4. 4

   Choose Loan Term

   Select loan duration in months (36, 48, 60, 72, etc.)

• 1

  Get pre-approved from banks or credit unions before dealer shopping

• 2

  Shorter loan terms cost more monthly but save thousands in interest

• 3

  Compare APR (includes fees) not just interest rate when shopping

• 4

  A 20% down payment avoids being underwater on the loan

• 5

  Don't share your monthly payment target with dealers - negotiate on price

• Focusing on monthly payment instead of total loan cost

• Accepting dealer financing without comparing other options

• Extending loan terms beyond 60 months just to lower payments

• Forgetting to include tax, title, and fees in loan amount