Enrichment · Passion Projects · Vehicles

The payment is not
the price.

A lower monthly payment can cost thousands more. Put each loan offer side by side and see the interest, the total paid and what a longer term really adds.

Compare my offersWhat you get

The vehicle financing interest calculator

The worked example is a used hatchback with a trade-in that is not paid off and three offers. Nothing you type leaves this browser.

Loading the calculator. If nothing appears, turn on JavaScript.

What you get

Enrichment · Passion ProjectsFree

What you finish with
The amount financed, each offer’s monthly payment, total interest and total paid, the offer that costs the least and a note on negative equity and longer terms. It prints as a one-page comparison to take to the dealer.
Who it is for
Anyone buying a new or used car with a loan, families comparing a dealer offer with a bank or credit union, and students learning how interest works.
Format
Browser calculator for a phone, tablet or computer, by touch or keyboard. Prints a summary; downloads a spreadsheet (.csv); export and import a file.
Access
Free. No account, no sign-in and nothing to install. Everything you type stays in this browser; nothing is sent to Caveat.
Where it lives
The Passion Projects space in Caveat Enrichment.
Support
Questions, a correction or a request: team@caveatacademic.com.

How to use it

  1. Type the agreed price.
  2. Add down payment and trade-in.
  3. Enter the tax rate and fees.
  4. List each loan offer.
  5. Compare total interest, not the payment.

Compare my offers

How each offer is worked out

The amount financed, then the standard loan formula.

The worked example: a used hatchbackPrice, tax, fees$30,30028,500 + 1,350 + 450Less down and trade−$9,0003,000 + 6,000Plus still owed$23,3002,000 payoff on the old carBank, 48 months$2,659$540.81 a monthThe worked example: a used hatchbackPrice, tax, fees$30,30028,500 + 1,350 + 450Less down and trade−$9,0003,000 + 6,000Plus still owed$23,3002,000 payoff on the old carBank, 48 months$2,659$540.81 a month
Tax and fees go onto the price, cash and the trade-in come off, and anything still owed on the trade-in goes back on. Each offer’s APR and months then set the payment and the interest.

The amount financed

Sales tax is charged on the price, in many states after the trade-in is taken off. Fees you do not pay up front are added. Your cash down and the trade-in come off; if you still owe more on the old car than it is worth, that difference is added to the new loan.

Payment and interest

Each month the lender charges the APR divided by 12 on what you still owe, and a level payment covers that interest plus some principal. As a check: $20,000 at 6 percent for 60 months is $386.66 a month, $23,199.60 paid in all and $3,199.60 interest. The same APR over more months means a smaller payment but more interest.

Sources

  1. Consumer Financial Protection Bureau. Auto loans: key terms, the APR and comparing offers (consumerfinance.gov).
  2. Federal Trade Commission. Financing or leasing a car (consumer.ftc.gov).
  3. Board of Governors of the Federal Reserve System. Truth in Lending (Regulation Z) consumer information on the annual percentage rate (federalreserve.gov).
  4. National Credit Union Administration. MyCreditUnion.gov: vehicle loans (mycreditunion.gov).

An estimate for comparing offers; the lender’s disclosure is the final word on the payment and the finance charge. Sales tax and fee rules vary by state. Your entries stay in this browser. Support: team@caveatacademic.com.