Auto Loan Calculator

Estimate your monthly payments and see your financing options.

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Amount Financed:$0.00
Total Interest:$0
Estimated Monthly Payment$0

Cost Breakdown

Cost of Loan
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Amortization Schedule

Breakdown of your monthly principal and interest.

How to Calculate Your Auto Loan Payments

Buying a new or used car is a significant financial commitment. Our Auto Loan Calculator helps you estimate your monthly payments, see how much interest you will pay over the life of the loan, and determine exactly how much car you can afford.

By adjusting the loan term, interest rate, and down payment, you can find a financing plan that fits your monthly budget.

Steps to Use This Calculator

  1. Enter Vehicle Price: Input the total purchase price of the car (after negotiations but before tax/title fees).
  2. Input Interest Rate (APR): Enter the annual percentage rate. Your rate depends on your credit score and whether the car is new or used.
  3. Select Loan Term: Choose how many months you will be paying off the loan. Common terms are 36, 48, 60, and 72 months.
  4. Add Down Payment: Enter the amount of cash you are paying upfront or the value of your trade-in vehicle.

Understanding Your Loan Factors

Loan Term

The length of your loan affects your monthly payment and total interest. A longer term (e.g., 72 months) lowers your monthly payment but increases the total interest paid. A shorter term increases the monthly cost but saves you money in the long run.

Interest Rate (APR)

Your Annual Percentage Rate (APR) is the cost of borrowing money. New cars typically have lower interest rates than used cars. Borrowers with excellent credit scores (720+) usually qualify for the lowest rates.

What is Amortization?

Amortization refers to how your payments are split between Principal (the car's cost) and Interest (the bank's profit). In the beginning of your loan, a larger portion of your payment goes toward interest. As time goes on, more of your payment goes toward paying off the car itself.

Frequently Asked Questions

Does a down payment lower my monthly rate?

Yes. A larger down payment reduces the principal loan amount. This lowers both your monthly payment and the total interest you pay over the life of the loan.

What is a good auto loan interest rate?

Interest rates fluctuate based on the federal rate and the economy. Generally, a rate below 5% is considered excellent, while rates above 10% are common for borrowers with lower credit scores or for older used vehicles.

Should I include sales tax in the calculator?

For the most accurate estimate, you should add sales tax and title fees to the "Vehicle Price" field. These fees are usually rolled into the loan financing.

Mastering Your Auto Loan

Buying a car is often the second largest purchase most people make, right after buying a home. Our Auto Loan Calculator is designed to help you look past the monthly payment and understand the true cost of financing a vehicle. By adjusting the loan term, interest rate, and down payment, you can see exactly how much interest you will pay over the life of the loan.

Whether you are financing a brand-new sedan, a used SUV, or refinancing an existing truck loan, understanding the math before you walk into the dealership gives you the upper hand in negotiations.

The 72-Month Trap

Dealers often push 72 or 84-month loans to make expensive cars seem affordable. While the monthly payment looks lower, you pay drastically more in interest. Furthermore, you risk becoming "upside-down" (owing more than the car is worth) because cars depreciate faster than you can pay off these long-term loans.

The Power of Down Payments

A down payment of at least 20% acts as a shield against depreciation. It ensures you have equity in the vehicle from day one. If you total the car in an accident, a healthy down payment ensures your insurance payout covers the loan, saving you from needing Gap Insurance.

New vs. Used Car Financing

Interest rates for used cars are typically higher than for new cars. Lenders view used cars as higher risk because their value is harder to predict. However, new cars lose about 20% of their value in the first year alone.

  • New Cars: Lower interest rates (sometimes 0% APR promos), but higher depreciation and insurance costs.
  • Used Cars: Lower purchase price and insurance, but higher interest rates and potential maintenance costs.

Tip: Follow the 20/4/10 Rule. Put 20% down, finance for no more than 4 years, and keep total car expenses under 10% of your gross monthly income.

Common Auto Loan Questions

Does checking my rate hurt my credit score?

Using a calculator like this one does not affect your score. However, when you apply for a loan at a dealership or bank, they perform a "hard pull," which can temporarily drop your score by a few points.

Can I pay off my car loan early?

Yes, in most cases you can pay off your auto loan early to save on interest. However, always check your loan agreement for "prepayment penalties," though these are becoming rare with reputable lenders.

What is a good APR for a car loan?

APR rates fluctuate with the federal interest rate. Generally, a "good" rate is anything below the national average for your credit tier. Excellent credit (720+) often qualifies for rates significantly lower than subprime borrowers.