Auto Loan Calculator
Calculate monthly car payments and total costs.
Loan Details
Payment Summary
Monthly Payment$466.08
Principal and interest only
Total Payment$27,964.53
Total amount you will pay over the loan term
Total Interest$2,964.53
Total interest paid over loan term
Note:
This calculation is an estimate. Additional costs like taxes, registration, and insurance are not included in this calculation.
Understanding Auto Loan Terms
When financing a car, your monthly payment consists of several components:
- Principal: The amount you're borrowing (car price minus down payment)
- Interest: The cost of borrowing, expressed as an annual percentage rate (APR)
- Term Length: The duration of your loan, typically 3-7 years
- Additional Costs: Sales tax, registration, insurance (not included in loan payment)
Factors That Affect Your Car Payment
Down Payment
A larger down payment offers several advantages:
- • Lower monthly payments
- • Less interest paid overall
- • Better chance of approval
- • Protection against depreciation
Loan Term
The length of your loan affects:
- • Monthly payment amount
- • Total interest paid
- • Risk of being "upside down"
- • Available interest rates
Tips for Getting the Best Auto Loan
Check Your Credit
Before applying:
- • Review your credit report
- • Dispute any errors
- • Pay down existing debt
- • Avoid new credit applications
Shop Around
Compare offers from:
- • Banks
- • Credit unions
- • Online lenders
- • Dealership financing
Negotiate Terms
Focus on:
- • Total price, not monthly payment
- • Interest rate
- • Loan term
- • Additional fees
Common Auto Loan Terms Explained
- Annual Percentage Rate (APR)
- The yearly cost of the loan, including interest and fees, expressed as a percentage.
- Gap Insurance
- Coverage that pays the difference between what you owe and what your car is worth if it's totaled.
- Upside Down
- When you owe more on your car than it's worth, often due to depreciation.
- Pre-approval
- Getting approved for a loan before shopping for a car, giving you a better negotiating position.