Auto Loan Calculator
Calculate your monthly car payments and total loan costs, including interest, based on the vehicle price, down payment, interest rate, and loan term.
※ Use if necessary
Auto Loan Calculator
Estimate your monthly car payments and total financing costs based on vehicle price, down payment, interest rate, and loan term.
These results are for reference only and were developed for educational and testing purposes. You can also directly access and review the source code, including the logic and free APIs used on this page.
Calculation Results
Auto Loan Calculator Guide
The Auto Loan Calculator is a tool designed to help you estimate monthly payments and total costs associated with financing a vehicle purchase. This guide provides instructions for using the calculator and objective information about auto loans.
How to Use the Auto Loan Calculator
Follow these steps to calculate your auto loan details:
- Enter the Vehicle Price: Input the total cost of the vehicle you plan to purchase.
- Enter the Down Payment: Specify the amount you will pay upfront to reduce the loan amount.
- Set the Annual Interest Rate: Provide the yearly interest rate offered by your lender.
- Specify the Loan Term: Input the loan duration in months.
- Enter Trade-In Value (Optional): Include the value of any vehicle you’re trading in, if applicable.
- Enter Sales Tax Rate (Optional): Provide the local sales tax rate, if applicable.
- Calculate: Click "Calculate Auto Loan" to view detailed results.
Understanding Auto Loans
Auto loans are secured loans used to finance the purchase of a vehicle, typically repaid in monthly installments. Key aspects include:
Fixed-Rate Auto Loans
The interest rate remains constant throughout the loan term.
- Predictable monthly payments
- Common for most auto financing
Variable-Rate Auto Loans
The interest rate may fluctuate based on market conditions.
- Payments may vary over time
- Less common but available through some lenders
Loan Structure
Auto loans are typically amortized, meaning each payment covers both principal and interest.
- Formula: P = [r * PV] / [1 - (1 + r)^-n]
- P = monthly payment, r = monthly interest rate, PV = present value (loan amount), n = number of payments
Factors Affecting Auto Loan Costs
Several elements influence the total cost of an auto loan:
Interest Rate
The annual percentage rate (APR) affects the total interest paid.
- Determined by credit score, lender, and market conditions
- Higher rates increase overall costs
Loan Term
The duration of the loan impacts monthly payments and total interest.
- Longer terms (e.g., 60-72 months) lower monthly payments but increase total interest
- Shorter terms (e.g., 36 months) reduce interest but raise monthly payments
Down Payment
The initial payment reduces the loan amount.
- Larger down payments decrease interest costs
- Typically 10%-20% of vehicle price
Trade-In Value
The value of a traded-in vehicle offsets the loan amount.
- Reduces the financed amount
- Dependent on vehicle condition and market value
Sales Tax
Local tax rates applied to the vehicle price increase the total cost.
- Varies by state or region (e.g., 0%-10% in the U.S.)
- May be financed as part of the loan
Typical Auto Loan Rates
Interest rates vary based on creditworthiness and term length (general ranges as of 2025):
- Excellent Credit (720+): 3%-5%
- Good Credit (660-719): 5%-7%
- Fair Credit (600-659): 7%-10%
- Poor Credit (< 600): 10%-15%+
Final Tips for Using the Calculator
- Use exact figures from your lender for vehicle price, interest rate, and term.
- Include trade-in value and sales tax for a more accurate estimate.
- Adjust the loan term to balance monthly payments and total interest.
- Consult your lender or a financial advisor for precise loan terms.
Results are estimates and may differ from actual loan agreements due to additional fees, rate fluctuations, or other terms not included here.