happycalculation.com
Enter your loan details below to see your estimated monthly payment and total loan cost
An auto loan calculator is a free online tool that helps you estimate your monthly car payment, total interest costs, and overall loan expenses based on the vehicle price, down payment, interest rate, and loan term. Whether you're buying a new car, used vehicle, or refinancing an existing auto loan, our calculator provides accurate payment estimates to help you budget effectively and make informed financing decisions.
Calculating your auto loan payment is quick and easy:
The amount you borrow after your down payment and trade-in. This is the vehicle price minus your upfront payment.
The annual percentage rate charged by the lender. Your credit score, loan term, and vehicle type significantly affect your rate.
The length of time you have to repay the loan, typically 24-84 months. Longer terms mean lower monthly payments but more total interest.
The amount you'll pay each month, including both principal and interest. This doesn't include insurance, gas, or maintenance.
The total amount you'll pay in interest charges over the life of the loan. Shorter terms and lower rates mean less interest paid.
The schedule showing how each payment is split between principal and interest. Early payments are mostly interest; later payments are mostly principal.
Know exactly what your monthly payment will be before visiting the dealership, helping you avoid overextending your finances.
Evaluate different loan terms, interest rates, and down payment scenarios to find the most affordable option.
Walk into the dealership knowing your numbers, making you a more informed and confident negotiator.
See the true cost of financing, including how much interest you'll pay over the loan's lifetime.
Factor in all costs—taxes, fees, and trade-ins—for an accurate picture of what you'll actually pay.
Calculate potential savings from refinancing your current auto loan at a lower interest rate.
Understanding loan mechanics helps you make smarter choices that can save thousands over the loan term.
Formula: M = P × [r(1 + r)^n] / [(1 + r)^n - 1]
Where:
A "good" rate depends on current market conditions and your credit score. As of 2025, rates between 4-7% for new cars with excellent credit are considered good. Anything below 5% is excellent. Compare offers from multiple lenders to ensure you're getting competitive rates.
Financial experts recommend putting down at least 20% for a new car and 10% for a used car. Larger down payments reduce your loan amount, lower monthly payments, and help you avoid being "underwater" (owing more than the car is worth).
Shorter terms (36-48 months) save money on interest but have higher monthly payments. Longer terms (60-72 months) have lower payments but cost more in total interest. Avoid 84-month loans when possible—you'll pay significantly more interest and may owe more than the car's value.
A general rule: your total monthly car expenses (payment, insurance, gas, maintenance) shouldn't exceed 15-20% of your gross monthly income. For the loan payment alone, aim for no more than 10% of monthly income.
Compare both! Dealers may offer promotional rates (0% APR) but their standard rates are often higher. Credit unions typically offer the best rates, followed by banks, then dealerships. Get pre-approved from multiple sources before negotiating.
The interest rate is the cost of borrowing money. APR (Annual Percentage Rate) includes the interest rate plus other loan fees, giving you the true cost of the loan. Always compare APRs when shopping for loans.
Most auto loans allow early payoff without penalties, but always verify this before signing. Paying extra toward principal, especially early in the loan, can save substantial interest. Even small extra payments make a difference.
Absolutely! Your credit score is one of the biggest factors determining your interest rate. A difference of just 100 points can mean thousands of dollars in interest over the loan term. Check your credit before applying and correct any errors.
New cars depreciate 20-30% in the first year alone. Used cars (2-3 years old) offer better value but may have higher interest rates. Consider certified pre-owned (CPO) vehicles for a balance of reliability and value.
Gap insurance covers the difference between what you owe and the car's actual value if it's totaled or stolen. It's recommended if you put less than 20% down, have a loan over 60 months, or bought a vehicle that depreciates quickly.
Trade-in value reduces the amount you need to borrow. However, if you owe more on your current car than it's worth (negative equity), that difference gets added to your new loan, increasing what you owe.
Yes! If interest rates drop or your credit score improves, refinancing can lower your monthly payment or reduce total interest paid. Best results come from refinancing within the first 2-3 years of the loan.
Common fees include: documentation fee ($100-500), registration/title ($50-400), dealer preparation ($200-600), and sales tax (varies by state). Some fees are negotiable, so ask for an itemized breakdown.
Longer terms = lower monthly payments but more total interest. Shorter terms = higher monthly payments but less total interest. For example, financing $25,000 at 6% costs $3,999 in interest over 60 months vs. $6,596 over 84 months.
Options include: getting a cosigner, making a larger down payment (30%+), choosing a less expensive vehicle, improving your credit before buying, or working with subprime lenders (but expect rates of 15-25%).
Know your score before shopping. This helps you understand what rates to expect and gives you time to improve your credit if needed.
Secure financing before visiting dealerships. Pre-approval gives you negotiating power and prevents dealer markup on interest rates.
Compare rates from banks, credit unions, and online lenders. Credit unions often offer rates 1-2% lower than banks or dealerships.
Never discuss monthly payments until you've negotiated the vehicle price. Dealers can manipulate payments by extending loan terms while keeping the price high.
20% down for new, 10% for used. This reduces your loan amount, builds immediate equity, and may qualify you for better rates.
While 72-84 month loans have lower payments, you'll pay thousands more in interest. Aim for 48-60 months maximum.
Watch for prepayment penalties, balloon payments, and add-ons like extended warranties that increase your loan amount.
Dealers love to focus on monthly payments. Always calculate total interest and overall cost before committing.
End of month, quarter, or year when dealers have quotas. Also consider buying last year's model when new models arrive.
Dealer add-ons (paint protection, fabric treatment, extended warranties) inflate your loan. Buy these separately if needed, or skip them entirely.
Sounds great but often requires excellent credit (750+) and you may forfeit rebates. Calculate whether the rebate with a regular rate saves more than 0% financing.
Leasing = lower monthly payments but no ownership. Buying = higher payments but you own the asset. Leasing makes sense if you want a new car every 2-3 years.
A cosigner with good credit can help you qualify or get better rates. But remember—they're equally responsible if you can't pay.
If rates drop or your credit improves, refinancing can save money. Best timing is when you still have substantial principal remaining.
Beyond your loan payment, budget for:
Total monthly cost: Often 1.5-2× your loan payment
Sales tax significantly affects your total cost:
Some states tax the full price, others tax after trade-in credit—know your state's rules.
This auto loan calculator provides estimates only and should not be considered a binding offer or guarantee. Actual loan terms, interest rates, and payments may vary based on your creditworthiness, lender policies, and market conditions. Always review official loan documents and consult with financial institutions before making financing decisions.
A higher credit score can qualify you for lower interest rates, saving you thousands over the life of the loan. Check your credit report before applying.
A larger down payment reduces your loan amount and monthly payments. Aim for at least 20% down to secure better financing terms.
While longer terms offer lower monthly payments, you'll pay more in total interest. Consider the shortest term you can comfortably afford.
Get quotes from multiple lenders including banks, credit unions, and online lenders to find the best auto loan rates available.