Auto Loan Calculator
Calculate monthly car payments, total interest costs, and compare different loan terms for your vehicle purchase.
About This Calculator
How to Use
- Enter the vehicle price
- Input your down payment and any trade-in value
- Enter the interest rate (APR) offered
- Select your preferred loan term
- Add your local sales tax rate
- Click Calculate to see payment details
🧮 Auto Loan Formula
M = P × [r(1+r)^n] / [(1+r)^n - 1]Where: M=Monthly payment, P=Principal, r=Monthly rate, n=Number of payments
Example: $30,000 loan at 6% APR for 60 months = $580/month
📊 Interest Rate Comparison
| Credit Score | New Car APR | Used Car APR |
|---|---|---|
| 750+ (Excellent) | 4.5-6% | 5.5-7% |
| 700-749 (Good) | 6-8% | 7-10% |
| 650-699 (Fair) | 9-12% | 11-15% |
| Below 650 | 14-20% | 18-25% |
💡 Money-Saving Tips
- Larger down payment: 20% down reduces loan amount and may get better rates
- Shorter term: 36-48 months saves thousands in interest vs 72-84 months
- Shop around: Get pre-approved from banks/credit unions before dealership
- Negotiate price first: Focus on vehicle price, not monthly payment
- Skip add-ons: Dealer extras often have high markups
❓ FAQ
What loan term should I choose?
48-60 months balances affordable payments with reasonable interest costs. Avoid 72-84 month loans if possible—you may owe more than the car is worth (negative equity).
Should I finance through dealer or bank?
Get pre-approved from your bank/credit union first, then compare to dealer offers. Sometimes dealers offer promotional rates (0% APR) that beat banks.
How much car can I afford?
Keep total car expenses (payment + insurance + fuel + maintenance) under 15-20% of monthly income. A common rule: car payment under 10% of gross income.
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? Frequently Asked Questions
How accurate is this
This calculator uses standard formulas and provides accurate results for typical use cases. For professional or critical applications, always verify results with certified professionals or official sources.
Is this calculator free to use?
Yes, this Auto Loan Calculator • Automotive • Calculator is completely free to use with no registration required. You can use it as many times as needed without any limitations.
Can I use this on mobile devices?
Absolutely! This calculator is fully responsive and works perfectly on smartphones, tablets, and desktop computers.
How do I interpret the results?
The results are displayed clearly with appropriate units. Refer to the "About This Calculator" section for detailed information.