Auto Loan Calculator
Calculate monthly payments, total interest, and loan amortization
Loan Details
Auto Loan Tips
A 20% down payment helps avoid being "upside down" on your loan
Shorter loan terms save money on interest but increase monthly payments
Pre-approval helps negotiate better deals at dealerships
Compare rates from banks, credit unions, and online lenders
Understanding Auto Loans
An auto loan calculator helps you determine monthly payments, total interest costs, and the overall expense of financing a vehicle purchase. By understanding these numbers before visiting a dealership, you can make informed decisions and negotiate better terms.
Key Factors Affecting Your Auto Loan
- Loan Amount: The vehicle price minus down payment and trade-in value
- Interest Rate (APR): Annual percentage rate charged by the lender
- Loan Term: Length of the loan in months (typically 24-84 months)
- Down Payment: Initial payment reducing the loan amount
- Trade-in Value: Credit from your current vehicle
Auto Loan Tips for Better Rates
- Check Your Credit Score: Higher scores qualify for better interest rates
- Shop Around: Compare offers from banks, credit unions, and online lenders
- Consider Pre-approval: Know your budget before shopping
- Negotiate the Price First: Focus on vehicle price before discussing financing
- Avoid Long Terms: Shorter loans save money despite higher monthly payments
Understanding Total Cost of Ownership
Beyond the loan payment, consider insurance, fuel, maintenance, and depreciation. A reliable vehicle with good fuel economy may cost less overall than a cheaper car with high operating costs.
When to Refinance Your Auto Loan
Consider refinancing if interest rates have dropped, your credit score has improved, or you need to lower monthly payments. Refinancing early in the loan term maximizes interest savings.