Auto Loan Calculator
Calculate your monthly car payments and find the best financing options for your budget
Auto Loan Calculator
Calculate your monthly payment and total loan cost
Vehicle Information
Enter details about your vehicle purchase
Loan Terms
Set your loan duration and interest rate
Fees & Taxes
Additional costs that affect your loan amount
Understanding Auto Loans
Learn how auto loans work and discover strategies to save money on your vehicle financing.
How Auto Loans Work
Auto loans are secured loans where the vehicle serves as collateral. You make monthly payments that include both principal and interest until the loan is paid off.
Key Loan Factors
- • Interest Rate (APR): Annual cost of borrowing
- • Loan Term: Length of repayment period
- • Down Payment: Upfront cash payment
- • Trade-in Value: Credit for existing vehicle
- • Vehicle Price: Total cost of the car
Money-Saving Tips
- • Shop around for the best rates
- • Make a larger down payment
- • Choose a shorter loan term
- • Consider certified pre-owned vehicles
- • Get pre-approved before shopping
How to Use This Auto Loan Calculator
Step 1: Vehicle Information
- • Enter the vehicle's purchase price
- • Add your planned down payment
- • Include trade-in value if applicable
- • See the amount you'll need to finance
Step 2: Loan Terms
- • Select your desired loan term
- • Enter the interest rate (APR)
- • Consider shorter terms for less interest
- • Balance payment size with total cost
Step 3: Additional Costs
- • Add sales tax rate for your area
- • Include dealership fees
- • Consider extra monthly payments
- • See your complete payment breakdown
Loan Term Comparison
| Loan Term | Typical APR Range | Monthly Payment | Total Interest | Best For |
|---|---|---|---|---|
| 36 months | 3.5% - 7.5% | Higher | Lower | Minimizing interest costs |
| 48 months | 4.0% - 8.0% | Moderate | Moderate | Balancing payment and cost |
| 60 months | 4.5% - 8.5% | Lower | Higher | Lower monthly payments |
| 72+ months | 5.0% - 9.5% | Lowest | Highest | Maximum affordability |
New vs Used Vehicle Financing
New Vehicle Loans
Advantages:
- • Lower interest rates
- • Longer loan terms available
- • Full manufacturer warranty
- • Special financing offers
Used Vehicle Loans
Advantages:
- • Lower purchase prices
- • Slower depreciation
- • Lower insurance costs
- • More negotiating room
Frequently Asked Questions
Your interest rate depends on your credit score, income, debt-to-income ratio, down payment amount, loan term, vehicle age, and current market rates. Higher credit scores and larger down payments typically result in lower rates.
Aim for at least 10-20% down on a new car and 15-25% on a used car. A larger down payment reduces your monthly payment, total interest paid, and helps avoid being "underwater" on the loan where you owe more than the car is worth.
While longer terms reduce monthly payments, they increase total interest costs and extend the time you're underwater on the loan. Choose the shortest term you can comfortably afford to minimize total costs and pay off the loan before major repairs are needed.
The interest rate is the cost of borrowing the principal loan amount. APR (Annual Percentage Rate) includes the interest rate plus additional fees and costs, giving you a more complete picture of the loan's true cost. Always compare APRs when shopping for loans.
Most auto loans allow early payoff without penalties, but check your loan agreement to be sure. Paying extra toward principal or paying off early can save significant interest. However, consider whether investing the extra money might yield better returns than the loan's interest rate.