Auto Loan Calculator
The Auto Loan Calculator helps you estimate your monthly car payment and total loan cost. Enter the vehicle price, down payment, loan term, and interest rate to see how much you will pay each month and how much total interest you will pay over the life of the loan. This calculator also helps you compare different loan offers and determine how much car you can afford. A larger down payment and shorter loan term will reduce your total interest cost, while a longer term will lower your monthly payment but increase the total interest you pay.
Formula
Monthly Payment = P × [r(1 + r)^n] ÷ [(1 + r)^n − 1] P = loan amount (vehicle price − down payment) r = monthly interest rate (annual rate ÷ 12) n = total number of monthly payments Total Interest = (Monthly Payment × n) − P
Example
For a $30,000 car with $5,000 down, 5% interest for 60 months: Loan Amount = $30,000 − $5,000 = $25,000 Monthly Payment = $25,000 × [0.00417(1.00417)^60] ÷ [(1.00417)^60 − 1] Monthly Payment = $471.78 Total Interest = ($471.78 × 60) − $25,000 = $3,306.80
How to Use
- Enter the total vehicle price
- Input your down payment amount
- Set the annual interest rate (check your credit score first)
- Choose the loan term (36, 48, 60, or 72 months)
- Review your monthly payment and total interest cost
Frequently Asked Questions
What is a good interest rate for an auto loan?
Auto loan rates vary by credit score. For excellent credit (750+), rates are typically 3-5%. For average credit (650-700), rates are 6-9%. For poor credit (below 600), rates can be 15% or higher. Always shop around for the best rate.
How much should I put down on a car?
A down payment of 20% is recommended for new cars and 10% for used cars. A larger down payment reduces your loan amount, lowers your monthly payment, and decreases total interest paid. It also helps avoid being upside down on your loan.
Is a 72-month or 84-month auto loan a good idea?
Longer loan terms lower your monthly payment but increase total interest and risk being upside down (owing more than the car is worth). A 60-month or shorter term is generally recommended for used cars; 72 months may be acceptable for new cars.
Should I get pre-approved for an auto loan?
Yes. Pre-approval tells you exactly how much you can borrow and at what rate, giving you negotiating power at the dealership. Get pre-approved from banks or credit unions before visiting the dealer.
Does my credit score affect my auto loan rate?
Yes, your credit score is the primary factor in determining your interest rate. A score above 750 typically qualifies for the best rates. Check your credit score before applying and consider improving it first if it is below 650.