🚗 Auto Loan Calculator
Calculate your car loan payment
Car price minus down payment
36, 48, 60, 72, or 84 months
How to Use This Calculator
Enter Loan Amount
Input the total loan amount (car price minus your down payment). This is the principal amount you'll be financing.
Enter Interest Rate
Enter the annual interest rate percentage. Auto loan rates typically range from 3% to 15%, depending on credit score, loan term, and lender.
Enter Loan Term
Input the loan term in months. Common auto loan terms are 36, 48, 60, 72, or 84 months. Longer terms mean lower monthly payments but more total interest.
Review Results
Click "Calculate Payment" to see your monthly payment amount, total amount paid over the life of the loan, and total interest cost. Use this information to compare loan options.
Formula
M = P × [r(1 + r)ⁿ] / [(1 + r)ⁿ - 1]
Where:
• M = Monthly Payment
• P = Principal Loan Amount
• r = Monthly Interest Rate (Annual Rate ÷ 12)
• n = Number of Monthly Payments (Loan Term in Months)
Example Calculation:
If you finance $25,000 at 5.5% annual interest for 60 months (5 years):
• Principal (P): $25,000
• Monthly rate (r): 5.5% ÷ 12 = 0.004583
• Number of payments (n): 60
• Monthly payment = $25,000 × [0.004583(1.004583)⁶⁰] / [(1.004583)⁶⁰ - 1]
• Monthly payment = $477.41
• Total paid = $477.41 × 60 = $28,644.60
• Total interest = $28,644.60 - $25,000 = $3,644.60
About Auto Loan Calculator
An auto loan calculator helps you estimate monthly payments, total interest costs, and the overall cost of financing a car purchase. Auto loans are secured loans where the car serves as collateral, typically offering lower interest rates than unsecured loans. Understanding your loan costs before purchasing helps you make informed financial decisions, compare different loan offers, and budget appropriately for your vehicle purchase.
When to Use This Calculator
- Car Purchase Planning: Estimate monthly payments before buying a car
- Loan Comparison: Compare different loan terms and interest rates from various lenders
- Budget Planning: Determine if you can afford the monthly payment
- Total Cost Analysis: Understand the true cost of financing vs. paying cash
- Refinancing: Evaluate whether refinancing your existing auto loan makes sense
Auto Loan Basics
- Loan Terms: Auto loans typically range from 36 to 84 months, with 60 months (5 years) being most common
- Interest Rates: Rates typically range from 3% to 15%, depending on credit score, loan term, and lender
- Down Payment: Most lenders recommend 10-20% down payment, though this varies
- Credit Score: Higher credit scores qualify for lower interest rates
- New vs. Used: New cars typically qualify for better rates than used cars
Why Use Our Calculator?
- ✅ Accurate Calculations: Uses standard amortization formula for precise results
- ✅ Quick Comparison: Easily compare different loan scenarios
- ✅ Total Cost Visibility: See both monthly payment and total interest cost
- ✅ Easy to Use: Simple interface requiring only three inputs
- ✅ 100% Free: No registration or payment required
Tips for Auto Loan Success
- Improve Credit Score: Better credit scores mean lower interest rates
- Save for Down Payment: Larger down payments reduce loan amount and may qualify you for better rates
- Shop Around: Compare rates from multiple lenders including banks, credit unions, and online lenders
- Consider Shorter Terms: While longer terms mean lower payments, you'll pay more in interest
- Read the Fine Print: Understand all terms, fees, and conditions before signing
- Get Pre-approved: Get pre-approved to know your budget before shopping
Frequently Asked Questions
What is a typical auto loan interest rate?
Auto loan interest rates typically range from 3% to 15%, depending on factors like your credit score, loan term, and the lender. Excellent credit (720+) can qualify for rates as low as 3-5%, while lower credit scores may see rates of 10-15% or higher.
How long are auto loans?
Auto loan terms typically range from 36 to 84 months. The most common term is 60 months (5 years). Longer terms result in lower monthly payments but higher total interest costs. Some lenders offer terms up to 96 months (8 years) for qualified borrowers.
What credit score do I need for an auto loan?
Most lenders require a credit score of at least 600-620 for auto loans, though requirements vary. Higher scores (720+) typically qualify for the best rates. Some lenders may offer loans to borrowers with lower scores but at higher interest rates.
Do I need a down payment for an auto loan?
Most lenders recommend a down payment of 10-20% of the car's purchase price. However, some lenders may offer loans with smaller down payments or even zero down for qualified borrowers with excellent credit. A larger down payment can help you qualify for better rates and reduce your monthly payment.
Can I get an auto loan for a used car?
Yes, you can get an auto loan for a used car, but terms may be different. Used cars may have higher interest rates, shorter loan terms, or require larger down payments. Lenders may also limit the maximum age of vehicles they'll finance.
What's the difference between an auto loan and a lease?
An auto loan allows you to own the car at the end of the loan term. A lease is essentially renting the car for a set period (typically 24-36 months) with lower monthly payments, but you don't own the car at the end. Leases often have mileage restrictions and fees for excess wear and tear.