Auto Loan Calculator - Calculate Monthly Car Payments
Free auto loan calculator to determine monthly car payments, total interest, and loan costs. Calculate vehicle financing including taxes, fees, and trade-in values
Auto Loan Calculator
Results
What is an Auto Loan Calculator?
An auto loan calculator is a free financial tool that helps you calculate your monthly car payment and total loan cost. It determines the complete cost of vehicle financing including taxes, fees, and interest.
This calculator helps with:
- Car purchases - Calculate monthly payments for new or used vehicles
- Loan comparison - Compare different financing offers and terms
- Budget planning - Determine affordable vehicle price ranges
- Trade-in evaluation - See how trade-in value affects your payment
- Interest cost analysis - Understand total cost of borrowing
Auto Loan Payment Components
Your monthly auto loan payment includes these key components:
Principal
Amount that reduces your loan balance. Higher percentage early in loan term.
Interest
Cost of borrowing money. Higher percentage early in loan term.
Taxes & Fees
Sales tax and destination charges added to loan amount.
Trade-in Credit
Value of your current vehicle that reduces loan amount.
Types of Auto Loans
Bank/Credit Union Loans
Traditional lenders offering competitive rates. Often best rates available.
Dealer Financing
Convenient but often higher rates. Compare with outside financing first.
Online Lenders
Digital platforms offering quick approval. Rates vary widely by credit score.
How to Use This Auto Loan Calculator
Enter Vehicle Price
Input the MSRP or negotiated price of the vehicle (e.g., $30,000)
Enter Down Payment
Input cash amount you plan to pay upfront (e.g., $6,000)
Add Trade-in Value
Input value of your current vehicle if trading in (e.g., $5,000)
Enter Interest Rate
Input annual interest rate from lender (e.g., 5.5%)
Set Loan Term
Choose loan duration (36-72 months)
Get Complete Results
View monthly payment and total cost breakdown
Benefits of Using This Calculator
- •Payment Planning: Know your exact monthly payment before visiting dealership.
- •Loan Comparison: Compare different rates, terms, and loan amounts effectively.
- •Budget Management: Determine what vehicle price fits your monthly budget.
- •Interest Savings: See how different down payments affect total interest cost.
- •Trade-in Optimization: Calculate optimal trade-in timing and value impact.
Factors That Affect Your Auto Loan Payment
1. Vehicle Price & Down Payment
Higher price or lower down payment = Higher monthly payment. 20% down payment is ideal.
2. Interest Rate
Higher rate = Higher payment. Even 1% difference significantly impacts total cost.
3. Loan Term
Longer term = Lower payment but more total interest. 60 months is most common.
4. Trade-in Value & Taxes
Higher trade-in reduces loan amount. Tax rates vary by state (0-10%).
Frequently Asked Questions
Common questions about auto loans and car financing
What factors affect my car loan payment?
Your monthly car payment is affected by the vehicle price, down payment amount, trade-in value, interest rate, loan term, and sales tax rate. A larger down payment or trade-in value reduces your loan amount and monthly payment.
Should I finance through dealer or bank?
Compare rates from multiple sources. Dealers may offer convenience but banks and credit unions often have lower rates. Always compare the total loan cost, not just monthly payments.
How much should I put as down payment?
20-30% down payment is ideal to reduce loan amount and interest costs. However, consider your cash flow needs and other financial goals when determining your down payment amount.
What's better: longer or shorter loan term?
Shorter terms (36-48 months) have higher payments but less total interest. Longer terms (60-72 months) have lower payments but significantly more interest. Choose based on your budget.
Does this include all car buying costs?
This calculator includes vehicle price, taxes, and fees in the loan calculation. It doesn't include ongoing costs like insurance, maintenance, fuel, or registration fees.
How accurate are these calculations?
Very accurate for the basic loan payment structure. Actual rates may vary based on your credit score, lender terms, and current market conditions. Get pre-approved for exact rates.
What credit score do I need for a car loan?
Most lenders require 620+ credit score for conventional auto loans. Scores 720+ typically qualify for the best rates. Lower scores may require subprime lenders with higher rates.
Should I include extended warranty in financing?
Generally avoid financing extended warranties or service contracts as they significantly increase total loan cost. Pay cash for these add-ons or consider them separately from your loan.