- Sales tax, registration, and dealer fees aren't included — add them to the vehicle price for an accurate estimate.
- A trade-in works just like a down payment, reducing the amount you need to finance.
- Shorter terms mean higher payments but less total interest; longer terms lower the payment but cost more overall.
- Hunch tracks your loan balance and payments alongside the rest of your finances automatically.
How the car loan calculator works
Enter the vehicle price, down payment (and trade-in value, if any), interest rate, and loan term. The calculator amortizes the loan to show your monthly payment, total interest, and total cost over the life of the loan.
The math: standard installment loan amortization
The amount financed (vehicle price minus down payment and trade-in) is amortized at the given rate over the loan term using the standard fixed-payment loan formula — the same math used for any installment loan. Each payment is split between interest (on the remaining balance) and principal.
Worked example
A $32,000 vehicle with a $4,000 down payment, financed at 6.5% over 60 months, comes to about $547/month and roughly $4,820 in total interest. Stretch the same loan to 72 months and the payment drops to about $470/month, but total interest rises to roughly $5,840.
Key terms
- Amount financed
- The vehicle price minus your down payment and trade-in value — the actual amount the loan covers.
- Loan term
- The length of time you have to repay the loan, typically 36–84 months for auto loans.
- Trade-in value
- The amount a dealer credits you for your current vehicle, applied like a down payment toward the new one.
- Total cost of credit
- The total interest paid over the life of the loan — the price of borrowing, separate from the vehicle price itself.