Auto Loan Calculator
Calculate your exact monthly car payment and total interest.
Auto Loan Calculator
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Estimated Monthly Payment$0
Enter values to see breakdown
Total Principal Loaned$0
Total Interest Paid$0
Total Cost of Vehicle$0
*Taxes, title, and registration fees are not included.
Mastering Your Car Purchase
Buying a car is usually the second-largest purchase a person makes in their lifetime. Unfortunately, car dealerships often try to negotiate based on "Monthly Payments" rather than the actual price of the car. This is a trap!
By extending the length of your loan, a dealer can lower your monthly payment while actually increasing the amount of money they make off you in interest. Our Auto Loan Calculator puts the power back in your hands.
How to Negotiate Like a Pro:
- Know your numbers beforehand: Calculate exactly what your payment should be based on your pre-approved interest rate from your bank or credit union before stepping foot in the dealership.
- Watch the Interest: Look at the red section of the pie chart above. That is the extra money you are paying just for the privilege of borrowing. A $35,000 car at 8% interest over 72 months will cost you over $9,000 in pure interest!
- The 20/4/10 Rule: Financial experts recommend putting down at least 20%, financing for no more than 4 years (48 months), and keeping your total monthly vehicle expenses under 10% of your gross income.
Frequently Asked Questions
How does the auto loan calculator work?
It uses the standard amortization formula. We subtract your down payment and trade-in value from the total car price to find your Principal Loan Amount. Then, we apply your interest rate over the selected loan term to calculate your fixed monthly payment.
Does this include taxes and fees?
No. Dealerships charge sales tax, title, and registration fees (often called 'out-the-door' fees) which vary wildly by location. You should add about 8% to 10% to the car's sticker price to account for these before using the calculator.
Is it better to take a longer loan term?
While a longer term (like 72 or 84 months) lowers your monthly payment, it significantly increases the total amount of interest you will pay over the life of the loan. Furthermore, cars depreciate quickly, so a long loan increases the risk of being 'underwater' (owing more than the car is worth).
Can I use this for used cars?
Absolutely! The math is exactly the same for new and used cars. Just keep in mind that interest rates for used cars are typically higher than for new cars.