Auto Loan Calculator
Planning to buy a car? Use this calculator to estimate your monthly payment based on the vehicle price, down payment, loan term, and interest rate. See how different terms affect your total cost and find the financing option that fits your budget.
How We Calculate This
This calculator uses the standard amortization formula: M = P[r(1+r)^n]/[(1+r)^n-1], where M is monthly payment, P is principal, r is monthly interest rate, and n is number of payments. Sales tax and fees are added to the loan amount.
Frequently Asked Questions
What factors affect my auto loan rate?
Your credit score is the biggest factor. Excellent credit (750+) typically gets rates under 5%, while fair credit (650-699) may see rates of 8-12%. Other factors include loan term, down payment amount, and whether the car is new or used.
Should I choose a longer or shorter loan term?
Shorter terms have higher monthly payments but lower total interest. A 36-month loan costs less overall than a 72-month loan. Choose the shortest term you can comfortably afford to minimize total cost.
How much should I put down on a car?
Aim for at least 20% down on a new car and 10% on a used car. A larger down payment reduces your loan amount, monthly payment, and total interest paid. It also helps avoid being "underwater" on the loan.
Is it better to pay cash or finance?
If you can get a low interest rate (under 4%) and earn more than that on investments, financing can make sense. However, paying cash avoids interest entirely and simplifies your finances.
Related Calculators
You might also find these calculators helpful: Loan Comparison Calculator, and Debt Payoff Calculator.