Auto Loan Calculator: Calculate Your Monthly Car Payment Costs
A calculator that determines monthly car payments and total costs based on vehicle price, down payment, interest rate, and loan term, helping buyers understand their auto financing options.
Auto Loan Calculator
Calculate car loan payments, total interest costs, and view complete amortization schedules with support for multiple currencies.
Auto Loan Summary
Monthly Payment
Total Loan Amount
Total Interest
Total Cost
Payment Schedule
| Payment Date | Payment | Principal | Interest | Balance |
|---|
Understanding Auto Loans
- The larger your down payment, the lower your monthly payments
- Shorter loan terms usually mean higher payments but less total interest
- Your credit score significantly impacts your interest rate
- Trade-in value reduces the amount you need to finance
- Consider total cost, not just monthly payments
Smart Car Buying Tips
- Aim for a 20% down payment to avoid being "underwater" on your loan
- Shop for financing before visiting dealerships
- Consider pre-owned vehicles to avoid heavy depreciation
- Factor in insurance costs to your monthly budget
- Check your credit score before applying for loans
Auto Loan FAQs
Your credit score has a significant impact on your auto loan terms:
- Excellent (750+): Best rates, typically 2-4% lower than average
- Good (700-749): Competitive rates, slightly higher than best rates
- Fair (600-699): Higher rates, may need larger down payment
- Poor (below 600): Highest rates or may require a co-signer
Even a 2% difference in rate can mean thousands in additional interest over the loan term.
Loan term comparison:
Shorter Term (36-48 months):
- Higher monthly payments
- Less total interest paid
- Build equity faster
- Vehicle likely worth more than loan balance
Longer Term (60-72 months):
- Lower monthly payments
- More total interest paid
- Longer to build equity
- Risk of being "underwater" on loan
Choose based on your budget and financial goals.
Common auto loan fees include:
1. Documentation fee
2. Title and registration fees
3. Sales tax
4. Gap insurance (optional)
5. Extended warranty (optional)
6. Origination fee (some lenders)
7. Prepayment penalties (some loans)
Always read the fine print and ask about all fees before signing.
Down payment recommendations:
- Minimum: 10% for new cars, 20% for used
- Ideal: 20% or more for new cars
- Benefits of larger down payment:
* Lower monthly payments
* Less total interest paid
* Better chance of approval
* Avoid being "underwater"
* May qualify for better rates
Key differences in financing:
New Cars:
- Lower interest rates
- Longer terms available
- Special manufacturer financing
- Higher insurance costs
- More rapid depreciation
Used Cars:
- Higher interest rates
- Shorter maximum terms
- More stable value
- Lower insurance costs
- Less depreciation impact
Gap insurance covers the difference between what you owe and what your car is worth if it's totaled. Consider gap insurance if:
1. Your down payment is less than 20%
2. You're financing for 60+ months
3. You're leasing the vehicle
4. Your car depreciates quickly
5. You drive many miles annually
The cost is typically 5-6% of your annual collision and comprehensive coverage.
To secure the best rate:
1. Check and improve credit score
2. Shop multiple lenders
3. Get pre-approved before dealership visit
4. Make larger down payment
5. Choose shorter loan term
6. Buy new vs. used
7. Negotiate rate directly
8. Consider credit union membership
Consider these factors:
Advantages:
- Save on interest payments
- Reduce monthly expenses
- Build equity faster
- Improve debt-to-income ratio
Check first:
- For prepayment penalties
- If money better used elsewhere
- Emergency fund status
- Higher interest debt priorities