Car Loan Calculator – Estimate Your Monthly Car Payment and Total Loan Cost
Use our car loan calculator to get a clear understanding of your potential monthly payments and total loan cost. By entering details such as the price of the vehicle, interest rate, loan term, and additional factors like down payment or trade-in value, you can explore different financing scenarios to find the best auto loan option for your budget
Car Loan Calculator
Calculate your monthly car loan payments, interest, and loan breakdown over time with this easy-to-use tool.
What is a Car Loan Calculator?
Our car loan calculator goes beyond basic calculations to help you plan for each cost involved in financing a car. With inputs for loan amount, loan term, interest rate, down payment, and trade-in value, you get an accurate estimate of your monthly car loan payments and total loan cost. Additionally, our calculator provides a full amortization schedule, allowing you to see a year-by-year breakdown of how your balance, interest, and principal payments change over time.
Whether you’re interested in a car loan payment calculator, used car loan calculator, or simply understanding how much car loan you can get approved for, our tool is designed to help you make informed decisions.
Loan Details Explained
Here’s what each input in the car loan calculator means and how they impact your loan:
Price of Vehicle: This is the amount you plan to finance for the car. It could be the MSRP (Manufacturer’s Suggested Retail Price) of a new car, adjusted for discounts or rebates, or the negotiated price for a used car.
Interest Rate: This is the annual interest rate offered by the lender. Your rate depends on factors like credit score, loan term, and lender policies. Generally, lower interest rates are offered to borrowers with good or excellent credit.
Loan Term (Months): This refers to the duration of the loan, typically between 24 and 84 months. While a longer loan term can lower monthly payments, it increases the total interest cost over time.
Down Payment: Making a down payment reduces the amount you finance, which can lower your monthly payment and the overall loan cost. Experts suggest putting down at least 20% for a new car and 10% for a used car when possible.
Trade-In Value: If you’re trading in your current car, this is its estimated worth, which will offset your new car’s price. Check online appraisal tools to get a reliable estimate for trade-in value.
Amount Owed on Trade-In: If you still owe money on the car you’re trading in, enter the balance. This amount will be added to your new loan if it’s not fully paid off, affecting the loan amount and monthly payment.
By inputting these values, the calculator provides a monthly car loan payment and additional details such as the total interest cost, payoff date, and a detailed amortization schedule.
Understanding Your Loan Estimate
Monthly Payment
This is the amount you’ll pay each month for the duration of your loan. It includes both principal (the amount borrowed) and interest (the lender’s charge for borrowing).
Total Interest Cost
The total interest is the cost of borrowing, calculated over the entire loan term. Factors that increase interest include higher loan amounts, higher interest rates, and longer loan terms. Our car loan calculator breaks down this cost so you can see how much you’ll pay in interest alone.
Total Loan Payments
The total loan payment is the sum of all monthly payments made over the loan term, including principal and interest. Comparing this total cost across different scenarios can help you choose the most cost-effective financing option.
Payoff Date
This date represents when your loan will be fully paid, based on your loan term. Paying off your loan faster, either by making additional payments or refinancing for a shorter term, can save you on interest.
Amortization Schedule
The amortization schedule offers a detailed view of how each monthly payment is divided between principal and interest. Over time, a larger portion of each payment goes toward the principal, reducing the balance owed on the loan. This schedule helps you see the impact of each payment on your balance, which can be useful if you’re planning to pay off your loan early.
FAQs About Car Loans
How Much Car Loan Can I Get Approved For?
Your approved loan amount depends on factors like credit score, income, debt-to-income ratio, and the lender’s specific requirements. Many lenders offer pre-approval, which allows you to know how much you qualify for before visiting a dealership.
How to Pay Off a Car Loan Faster?
To pay off a car loan faster, consider making additional principal payments, choosing a shorter loan term, or refinancing if you qualify for a better interest rate. Our calculator can help you see the impact of extra payments on the total loan cost.
How Long Will It Take to Pay Off My Car Loan?
Enter your loan details into our calculator to get a clear picture of your loan payoff timeline. You can adjust the loan term and interest rate to see how different options affect the payoff date.
How Does a Trade-In Affect My Car Loan?
Trading in a car with an outstanding loan balance adds the unpaid balance to your new car loan, increasing the loan amount. Conversely, a trade-in value greater than the loan balance reduces the amount you need to finance.
Tips for Using Our Car Loan Calculator
Experiment with Different Scenarios: Adjust the loan term, down payment, and interest rate to see how these changes impact your monthly payment and total loan cost.
Consider a Shorter Loan Term: Although longer loan terms offer lower monthly payments, they also result in higher interest costs. Choose the shortest term you can afford to minimize total loan expenses.
Use It to Compare Lenders: By entering different interest rates, you can compare how lenders’ terms affect your monthly payment and total cost. Pre-approval with multiple lenders within a short period can help you secure the best rate without impacting your credit score.
Add All Possible Expenses: Car loans often include fees, such as sales tax, registration, and title fees, which you may want to add to your loan amount.
Types of Auto Financing Available
Purchase Loans: Most car loans fall under this category. The loan covers the cost of a new or used vehicle, with monthly payments over a set term.
Refinance Loans: These loans replace an existing auto loan with a new one, typically offering a lower interest rate or reduced monthly payments. You can use our calculator to estimate your current loan’s payoff and compare it with refinance offers.
Leasing: Leasing is a separate financing option where you pay for the use of a car over a fixed period. Monthly lease payments are generally lower than loan payments, but you do not own the vehicle at the end of the lease unless you choose to buy it.
Shopping for an Auto Loan?
Once you have an idea of your monthly payment and loan cost, explore auto loan offers from banks, credit unions, and online lenders. Many lenders provide new car purchase loans, used car loans, and refinancing options tailored to different credit scores and needs.
For the best deal, consider getting pre-approved with multiple lenders and using our calculator to compare terms. This tool empowers you to make informed financial choices so that you can drive away with the best financing for your situation.
