Auto Loan Calculator
How to Use the Auto Loan Calculator
Our auto loan calculator helps you estimate monthly car payments and total loan costs before you visit the dealership. Enter your vehicle price, loan term, interest rate, and any down payment or trade-in value to get accurate payment estimates.
Auto Loan Payment Factors
Vehicle Price: The total cost of the car including any add-ons or extended warranties. A higher vehicle price increases your monthly payment and total interest costs.
Loan Term: The length of your auto loan in months, typically ranging from 36 to 84 months. Longer terms reduce monthly payments but increase total interest paid over the life of the loan.
Interest Rate: The annual percentage rate (APR) charged by the lender. Your credit score, loan term, and vehicle age significantly impact the interest rate you qualify for.
Down Payment: The upfront payment you make toward the vehicle purchase. A larger down payment reduces your loan amount, monthly payments, and total interest costs.
Auto Loan Tips for Better Financing
Shop Around for Rates: Compare auto loan rates from banks, credit unions, and online lenders before accepting dealer financing. Credit unions often offer competitive rates for auto loans.
Consider Loan Term Carefully: While longer loan terms reduce monthly payments, they result in higher total interest costs and may leave you owing more than the car's value.
Factor in All Costs: Remember to include sales tax, registration fees, insurance, and maintenance costs when budgeting for your vehicle purchase.
Trade-In vs. Private Sale: Consider selling your current vehicle privately rather than trading it in to potentially get a higher value and reduce your loan amount.
Understanding Auto Loan Amortization
Auto loan amortization shows how your monthly payments are split between principal and interest over time. Early payments consist mostly of interest, while later payments pay down more principal. Use the amortization schedule to understand your loan's payment structure and total costs.