How to Calculate Auto Loan Payments (Avoid the Trap)
Walking into a car dealership without knowing your numbers is like swimming with sharks. Salespeople love the "monthly payment game," extending your loan to 84
How to Calculate Auto Loan Payments (Avoid the Trap)
Walking into a car dealership without knowing your numbers is like swimming with sharks. Salespeople love the "monthly payment game," extending your loan to 84 months just to fit a luxury car into your budget.
The Pain of "Dealer Math"
Dealers focus on the monthly payment because it allows them to manipulate the rate and term. They might get you the payment you want, but you'll be underwater on the loan for years.
The Hard Way: Calculating it Yourself
The math for a car loan includes sales tax (which varies by state), trade-in equity, and dealer fees.
Payment = (Loan Amount × Rate/12) / (1 - (1 + Rate/12)^(-Months))
Trying to do this in your head while a salesperson pressures you is impossible.
The Easy Way: Be Prepared
Arm yourself with the truth. Our calculator considers sales tax, trade-ins, and accurate interest rates so you have a "walk-away" number before you even step on the lot.
Frequently Asked Questions
Should I trade in my old car?Trading in acts as a down payment, lowering the amount you need to borrow. Our tool calculates this instantly.