Auto Loan Calculator

Calculate your monthly car payment, total interest, and loan amortization. Compare auto loan options and save money.

Loan Details
$
$25,000
$
$5,000
%
5.5%
%
$
$
$402
Monthly Payment
$2,140
Total Interest
$27,140
Total Cost
Loan Amount
$20,000
Total Principal
$25,000
Total Fees & Taxes
$2,375
Payment Breakdown
Amortization
Interest vs Principal
Loan Payment Breakdown
Loan Amortization Schedule
Interest vs Principal Payments
Loan Details
Component Amount
Vehicle Price $25,000
Down Payment $5,000
Trade-in Value $0
Sales Tax (7.5%) $1,875
Fees $500
Total Loan Amount $22,375

Understanding Auto Loans

Our Auto Loan Calculator helps you estimate your monthly car payment, total interest costs, and the complete amortization schedule. Understanding these factors can help you make an informed decision when financing your vehicle.

How Auto Loans Work

An auto loan is a secured loan where the vehicle itself serves as collateral. You borrow money from a lender to purchase a car and agree to pay back the loan amount plus interest over a set period of time.

Key Auto Loan Terms

  • Principal: The amount you borrow to purchase the vehicle
  • Interest Rate: The percentage charged by the lender for borrowing money
  • Loan Term: The length of time you have to repay the loan (typically 36-72 months)
  • Down Payment: The initial payment made when purchasing the vehicle
  • Amortization: The process of paying off your loan through regular payments

Factors That Affect Your Auto Loan

  • Credit Score: Higher scores typically qualify for lower interest rates
  • Loan Term: Longer terms mean lower monthly payments but higher total interest
  • Down Payment: Larger down payments reduce your loan amount and monthly payment
  • Vehicle Age: New cars often have lower interest rates than used cars
  • Lender Type: Banks, credit unions, and dealerships offer different rates and terms

Tips for Getting the Best Auto Loan

  • Check your credit score before applying and correct any errors
  • Shop around with multiple lenders to compare rates
  • Consider getting pre-approved before visiting dealerships
  • Make the largest down payment you can afford
  • Choose the shortest loan term you can comfortably afford
  • Read all loan documents carefully before signing

Frequently Asked Questions

Q: What is a good interest rate for an auto loan?
A: Interest rates vary based on creditworthiness, but as of 2023, rates between 3-5% are considered excellent for borrowers with good credit.

Q: How does a larger down payment affect my loan?
A: A larger down payment reduces your loan amount, which can result in lower monthly payments and less interest paid over the life of the loan.

Q: Should I choose a longer or shorter loan term?
A: Shorter terms mean higher monthly payments but less interest paid overall. Longer terms have lower monthly payments but cost more in total interest.

Q: What is the difference between pre-qualification and pre-approval?
A: Pre-qualification gives you an estimate of what you might borrow, while pre-approval is a more formal offer from a lender after reviewing your credit.

Q: Can I refinance my auto loan?
A: Yes, if interest rates drop or your credit improves, you may be able to refinance your auto loan to get a lower rate or better terms.