Auto Loan Calculator
Calculate your auto loan payments based on vehicle price, interest rate, and loan term. See total costs and monthly payment amounts.
Auto Loan Details
How to Use the Auto Loan Calculator
- Enter Vehicle Price: Input the total price of the car you want to purchase
- Set Down Payment: Enter how much you plan to pay upfront (typically 10-20%)
- Add Trade-in Value: Include the value of your current vehicle if trading in
- Interest Rate: Enter the APR offered by your lender or estimated rate
- Loan Term: Choose the length of the loan (typically 36-72 months)
- Review Results: See monthly payment, total interest, and payment breakdown
Calculation Examples
New Car Loan
Used Car Loan
Auto Loan Shopping Tips:
- Shop Around: Compare rates from banks, credit unions, and dealers
- Check Credit Score: Higher scores qualify for better interest rates
- Consider Total Cost: Longer terms mean lower payments but more interest
- Negotiate Separately: Negotiate car price, trade-in, and financing separately
Frequently Asked Questions
How much should I put down on a car?
Aim for 20% on new cars and 10% on used cars. A larger down payment reduces your loan amount, monthly payment, and total interest paid.
What's the best loan term length?
Shorter terms (36-48 months) cost less overall but have higher payments. Longer terms (60-72 months) have lower payments but more interest. Avoid terms over 72 months.
Should I get financing from the dealer or my bank?
Shop both. Get pre-approved at your bank or credit union first, then see if the dealer can beat that rate. Credit unions often offer competitive rates.
How does my credit score affect my rate?
Higher credit scores (740+) get the best rates, often 3-5%. Scores below 600 may face rates of 10%+ or require a cosigner.
What's the difference between new and used car loan rates?
New car loans typically have lower rates (2-5%) than used car loans (4-8%) because new cars are less risky collateral for lenders.
Can I pay off my auto loan early?
Most auto loans allow early payoff without penalties. Paying extra toward principal reduces total interest and shortens the loan term.
Understanding Auto Loans
Loan Terms
APR (Annual Percentage Rate)
Interest rate plus fees; the true cost of borrowing
Loan Term
Length of loan in months; longer terms = lower payments but more interest
LTV Ratio
Loan-to-value ratio; lower ratios often get better rates
Smart Financing
20/4/10 Rule
20% down, 4 year max loan, 10% of income max payment
Pre-approval Benefits
Know your rate and budget before shopping
Gap Insurance
Consider if loan amount exceeds car's current value
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