Auto Loan Calculator
Calculate your monthly car loan payments, total interest, and loan amortization. Compare different loan terms, down payments, and interest rates to find the best financing option.
Auto Loan Calculator
Auto Loan Summary
Cost Breakdown:
Vehicle: $30,000.00
Down Payment: $5,000.00
Trade-in: $0.00
Term: 60 months (5 years)
Affordability Tips
- Monthly car expenses (including payment, insurance, fuel, and maintenance) should ideally be less than 15-20% of your monthly income.
- A larger down payment reduces the loan amount and monthly payments.
- Shorter loan terms typically have higher monthly payments but lower total interest costs.
- Consider getting pre-approved for an auto loan before shopping to know your budget.
Understanding Auto Loans
An auto loan is a financial agreement where a lender provides money to purchase a vehicle, and the borrower agrees to repay the loan amount plus interest over a specified period. Understanding the components of an auto loan can help you make informed decisions about your vehicle purchase.
Key Components of an Auto Loan
Loan Amount
The total amount borrowed to purchase the vehicle, minus any down payment.
Down Payment
The initial payment made at the time of purchase, reducing the loan amount.
Interest Rate
The annual percentage rate (APR) charged by the lender for borrowing the money.
Loan Term
The length of time over which the loan will be repaid, typically 36-72 months.
Factors Affecting Auto Loan Rates
Credit Score
Higher credit scores typically qualify for lower interest rates.
Loan Term
Shorter loan terms usually have lower interest rates but higher monthly payments.
Down Payment
Larger down payments may qualify for better interest rates.
Vehicle Age
Newer vehicles often qualify for better financing terms than older ones.
How to Use This Calculator
- Enter the vehicle price
- Input your down payment amount
- Select the loan term (in months)
- Enter the interest rate
- Click "Calculate" to see your results
- Review your monthly payment, total interest, and total cost
Important Note:
This calculator provides estimates only. Actual loan terms and payments may vary based on your credit history, the specific lender, and other factors. Always review the final terms with your lender before signing any loan agreement.