Auto Loan Calculator
Estimate your monthly car payment and total loan cost.
Your Estimated Monthly Payment
$0.00
Total Loan Amount
$0
Total Interest Paid
$0
| # | Payment | Principal | Interest | Total Interest | Balance |
|---|
How to Use the Auto Loan Calculator
Understanding Your Car Loan
Buying a car is a major financial decision, and our Auto Loan Calculator is designed to give you a clear understanding of the costs involved before you visit a dealership. By inputting a few key numbers, you can get a realistic estimate of your monthly payment and the total cost of your auto loan.
- Vehicle Price: The sticker price of the car you want to buy.
- Down Payment: The cash you’ll pay upfront. A larger down payment reduces your loan amount and monthly payment.
- Trade-in Value: The value of the car you are trading in, which also reduces your loan amount.
- Interest Rate (APR): The annual cost of borrowing money. Your credit score is the biggest factor in determining this rate.
- Loan Term: The length of your loan in years. A longer term means lower monthly payments but more total interest paid over time.
Why Your Monthly Payment Matters
Your monthly car payment is more than just a number—it’s a key part of your monthly budget. Our Auto Loan Calculator helps you find a payment that fits comfortably within your financial plan. A common rule of thumb is that your total car expenses (including payment, insurance, and gas) should not exceed 10-15% of your monthly take-home pay.
Experimenting with different loan terms is a great feature of this calculator. A 72- or 84-month loan will have a tempting low payment, but you’ll pay significantly more in interest compared to a 48- or 60-month loan.
Frequently Asked Questions about Auto Loans
How much of a down payment should I make?
Financial experts typically recommend a down payment of at least 20% of the vehicle’s purchase price. This helps you avoid becoming “upside down” on your loan (owing more than the car is worth) and often results in a lower interest rate.
What’s the difference between interest rate and APR?
The interest rate is just the cost of borrowing the money. The Annual Percentage Rate (APR) is a broader measure that includes the interest rate plus any lender fees. The APR gives you a more accurate picture of the total cost of the loan.
Should I get pre-approved for an auto loan?
Yes, getting pre-approved for a loan from your bank or a credit union before you go to the dealership is highly recommended. It gives you a baseline interest rate and allows you to negotiate with the dealer from a position of strength. You can use our Auto Loan Calculator with your pre-approval rate to know exactly what you can afford.