Auto Loan Calculator

Use our auto loan calculator to estimate your monthly car payments, total interest costs, and view your complete amortization schedule. See how different loan terms, interest rates, and down payments affect your total cost.

Car Loan Calculator

Vehicle Information

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Enter the price of the vehicle

$

Enter your trade-in value (if any)

Loan Details

$

Enter your down payment amount

%

Select loan term in years

%

Enter the annual interest rate

%

Enter the sales tax rate

How Auto Loans Work

Auto loans are a type of installment loan used to purchase a vehicle. The vehicle serves as collateral for the loan, which means if you fail to make payments, the lender can repossess it.

Most auto loans use simple interest calculations, where interest is calculated based on your remaining loan balance. As you pay down your loan, more of each payment goes toward the principal and less toward interest.

Factors Affecting Your Auto Loan

Credit Score

Your credit score is one of the most important factors lenders consider. A higher credit score typically results in a lower interest rate and better loan terms.

Down Payment

Making a larger down payment reduces your loan amount, which can lower your monthly payments and total interest costs. Most lenders recommend at least 20% down to avoid being 'underwater' on your loan.

Loan Term

While longer loan terms (60-72 months) may offer lower monthly payments, they usually come with higher interest rates and result in higher total costs. Shorter terms (36-48 months) typically have lower rates and cost less overall.

Tips for Getting the Best Auto Loan

  • Shop around for financing options before visiting a dealership.
  • Get pre-approved for a loan to strengthen your negotiating position.
  • Focus on the total cost of the vehicle, not just the monthly payment.
  • Avoid extending your loan term just to lower monthly payments.
  • Consider refinancing if interest rates drop or your credit score improves.

How to Use Our Auto Loan Calculator

  1. Enter the vehicle price, down payment, trade-in value (if applicable), and sales tax rate.
  2. Input your loan term in years and the annual interest rate.
  3. Click 'Calculate' to see your estimated monthly payment and loan breakdown.
  4. Review the amortization schedule to understand how your loan balance decreases over time.

This calculator helps you understand the full financial impact of your auto loan, allowing you to make informed decisions about your vehicle purchase.