Auto Loan Calculator
Estimate your monthly car payment, total interest, and loan amortization with our auto loan calculator. Adjust loan amount, interest rate, and term to see how it affects your payment.
Auto Loan Summary
Enter your loan details and click "Calculate" to see results.
About Auto Loans
An auto loan is a personal loan used to purchase a vehicle, where the vehicle serves as collateral for the loan. The loan is repaid in fixed monthly installments over a set period (typically 36 to 72 months).
How Auto Loans Work
- Loan Amount: The total amount borrowed to purchase the vehicle, minus any down payment or trade-in value.
- Interest Rate: The annual percentage rate (APR) charged by the lender, which affects your monthly payment.
- Loan Term: The length of time you have to repay the loan, typically expressed in months (e.g., 60 months = 5 years).
- Down Payment: An upfront payment that reduces the loan amount and shows the lender you're invested in the purchase.
- Monthly Payment: The fixed amount you pay each month, which includes principal and interest.
Tips for Getting the Best Auto Loan
- Check your credit score: Higher credit scores qualify for lower interest rates.
- Shop around: Compare rates from multiple lenders (banks, credit unions, online lenders).
- Consider a shorter term: Shorter terms mean higher monthly payments but less total interest paid.
- Make a substantial down payment: At least 20% is recommended to avoid being "upside down" on your loan.
- Understand all fees: Watch out for origination fees, prepayment penalties, and other charges.