Auto Loan Calculator

Calculate monthly car payments, total interest, and total cost of your auto loan

$0
Monthly Payment

About the Auto Loan Calculator

This auto loan calculator helps you estimate monthly car payments based on vehicle price, down payment, interest rate, and loan term. Knowing your car payment before visiting the dealership puts you in a stronger negotiating position. It accounts for your down payment and shows the full cost including total interest over the loan term. Use this calculator before visiting a dealership to understand what monthly payment fits your budget and negotiate with confidence.

How to Use This Calculator

  1. Enter the vehicle price and your down payment amount.
  2. Input the annual interest rate and loan term in months.
  3. Click Calculate to see your monthly payment and total loan cost.

The Formula

The calculator uses the standard amortizing loan formula applied to the financed amount after your down payment.

M = P × [r(1+r)^n] / [(1+r)^n - 1]

Frequently Asked Questions

How does my down payment affect my auto loan?

A larger down payment reduces the amount you need to finance, lowering your monthly payment and total interest. Aim for at least 20% down if possible.

What is a good auto loan term?

Most auto loans range from 36 to 72 months. Shorter terms have higher payments but lower total interest, while longer terms reduce monthly payments but cost more overall.

How does my credit score affect auto loan rates?

Credit scores significantly impact auto loan rates. Borrowers with excellent credit (720+) may qualify for rates as low as 3-5%, while those with lower credit may face rates of 10% or higher.

What is a good down payment for a car?

A down payment of at least 20% of the vehicle price is recommended. A larger down payment reduces your loan amount, lowers monthly payments, and helps ensure you are not upside-down on the loan.

Should I finance through the dealer or my bank?

Compare offers from both sources. Dealers often have promotional rates, but your bank or credit union may offer competitive pre-approved rates. Always check multiple options before deciding.

What is the ideal auto loan term length?

Most experts recommend 36-60 month terms. Terms longer than 72 months may lower payments but result in higher total interest and a greater risk of being underwater on the loan.

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