Auto Loan Calculator
Estimate your monthly car payment and total loan cost with our free auto loan calculator. Adjust loan terms to find the best option for your budget.
Loan Summary
Amortization Schedule
How to Use Our Auto Loan Calculator
Our auto loan calculator helps you estimate your monthly car payments and total loan cost before you visit the dealership. Simply enter the vehicle price, your down payment, trade-in value, loan term, interest rate, and any additional fees to see a detailed breakdown of your potential auto loan.
Understanding Auto Loan Calculations
When financing a vehicle, several factors determine your monthly payment:
- Vehicle Price: The total cost of the car before any discounts or negotiations.
- Down Payment: The amount you pay upfront, which reduces the loan amount.
- Trade-in Value: The value of your current vehicle if trading it in.
- Loan Term: The length of the loan (typically 36-72 months).
- Interest Rate: The annual percentage rate (APR) charged by the lender.
- Sales Tax: The percentage tax rate applied to vehicle purchases in your state.
- Fees: Additional costs like documentation fees, title fees, etc.
Tips for Getting the Best Auto Loan
Follow these strategies to secure favorable loan terms:
- Check your credit score - Higher scores qualify for lower interest rates.
- Save for a larger down payment - Putting down 20% or more reduces your loan amount.
- Compare loan offers - Get quotes from multiple lenders including banks, credit unions, and dealerships.
- Consider shorter loan terms - While monthly payments are higher, you'll pay less interest overall.
- Negotiate the vehicle price - A lower purchase price means borrowing less money.
Frequently Asked Questions
Q: What is a good interest rate for a car loan?
A: As of 2023, rates between 3-5% are considered excellent for borrowers with good credit. Rates may be higher for used cars or borrowers with lower credit scores.
Q: How much should I put down on a car?
A: Financial experts recommend at least 20% down for new cars and 10% for used cars. Larger down payments reduce your loan amount and monthly payments.
Q: What's better - a shorter or longer auto loan term?
A: Shorter terms (36-48 months) save money on interest but have higher monthly payments. Longer terms (60-72 months) lower monthly payments but cost more in interest over time.
Q: Should I finance through the dealership or my bank?
A: Compare both options. Dealerships may offer promotional rates, but banks/credit unions often have competitive rates for well-qualified buyers.
The Impact of Loan Terms on Total Cost
Our auto loan calculator clearly shows how extending your loan term affects the total amount you'll pay. For example, a $25,000 loan at 5% interest would cost:
- 36 months: $26,968 total ($749/month)
- 48 months: $27,624 total ($575/month)
- 60 months: $28,300 total ($472/month)
- 72 months: $29,000 total ($403/month)
While the monthly payment decreases with longer terms, the total interest paid increases significantly.
Final Thoughts on Auto Financing
Using our auto loan calculator before car shopping helps you understand what you can afford and negotiate better terms. Remember to factor in insurance, maintenance, and fuel costs when budgeting for a new vehicle. For the best results, get pre-approved for financing before visiting dealerships to compare their offers against your pre-approval terms.