Auto Loan Calculator
Calculate your car loan payments and total cost of financing
Auto Loan Details
Monthly Payment
$8,354,531.24
Total Interest
$1,271,874.63
Total Amount Paid
$501,271,874.66
Total Cost of Car
$501,271,874.66
Including interest
Our auto loan calculator helps you determine your monthly car payment, total interest cost, and the true cost of financing a vehicle. Use it to compare financing options and make informed decisions when buying your next car.
What is calculators.auto-loan-calculator.title?
An auto loan calculator computes your monthly car payment based on the vehicle price, interest rate, and loan term. It helps you understand the total cost of car ownership, including financing charges.
Auto loans typically have shorter terms (3-7 years) and higher interest rates than mortgages. Understanding your payment helps you budget and avoid overextending yourself financially.
This calculator is essential when shopping for a car, comparing financing offers from dealers and banks, and deciding between buying new vs. used or leasing vs. buying.
How to Use This Calculator
- 1
Car Price
Enter the total purchase price of the vehicle, including taxes and fees if applicable.
Tip: Don't forget to include sales tax, registration fees, and dealer fees in your total.
- 2
Annual Interest Rate
Input the auto loan interest rate. Rates vary based on credit score, loan term, and whether you're buying new or used.
Tip: New car loans typically have lower rates than used car loans. Your credit score significantly impacts the rate you'll receive.
- 3
Loan Term
Select the repayment period, typically 3-7 years. Longer terms mean lower monthly payments but more total interest.
Tip: While longer terms reduce monthly payments, they increase total interest paid. Try to choose the shortest term you can comfortably afford.
Result: You'll see your monthly car payment, total interest paid over the loan term, total amount paid (including interest), and the true cost of the vehicle with financing.
How the Calculation Works
Auto loan payments use the same amortization formula as other loans, calculating equal monthly payments that include both principal and interest.
M = P × [r(1+r)^n] / [(1+r)^n - 1]Variables:
- M= Monthly payment
- P= Principal (car price minus down payment)
- r= Monthly interest rate (annual rate ÷ 12)
- n= Number of monthly payments
Important Assumptions:
- Fixed interest rate
- Monthly payments
- No prepayment penalties included
Practical Examples
Example: New Car Purchase
Buying a $30,000 car at 5% interest for 5 years with no down payment.
Inputs:
- Price: $30,000
- Rate: 5%
- Term: 5 years
Interpretation: Your monthly payment would be $566. Over 5 years, you'd pay $3,960 in interest, making the total cost $33,960. This means financing adds about 13% to the car's price.
When Should You Use This Calculator?
- •Shopping for a car
- •Comparing financing offers
- •Deciding between new and used
- •Planning your car budget
- •Understanding total car ownership cost
Limitations and Things to Keep in Mind
Does not include insurance, maintenance, or fuel costs
Assumes fixed rate
Down payment not included in calculation
Frequently Asked Questions (FAQs)
What's a good interest rate for an auto loan?
Rates vary by credit score, but generally 3-6% is good for new cars with excellent credit, while 6-12% is typical for used cars or average credit.
Should I finance through the dealer or bank?
Compare both options. Dealers may offer promotional rates, but banks often have competitive rates. Get pre-approved from a bank to negotiate better terms.
How does my credit score affect my auto loan rate?
Credit scores significantly impact rates. Excellent credit (750+) may get 3-5%, while poor credit (600-) may see 15-20% or higher. Improve your credit before applying to save thousands.
Related Calculators
Related Articles
How to Use an APR Calculator to Understand Your Real Loan Cost
Learn how APR differs from interest rate and why it matters. Discover how to use APR calculators to compare loans and make informed borrowing decisions.
8 min readHow to Compare Personal Loans Effectively in 2025
Complete guide to comparing personal loans. Learn to evaluate APR, fees, terms, and use loan calculators to find the best deal for your financial situation.
10 min readLoan Amortization Explained: Tips for Paying Off Debt Faster
Understand how loan amortization works and discover proven strategies to pay off debt faster. Learn how extra payments save money and shorten loan terms.
9 min readUnderstanding DTI Ratio: Why It Matters for Loan Approval
Learn what debt-to-income ratio means, how lenders use it, and how to calculate yours. Discover strategies to improve your DTI for better loan approval chances.
7 min readAuto Loan Calculator Guide: Buying Your Next Car
Navigate the car buying process with confidence. Learn how to use auto loan calculators to understand financing options, compare deals, and negotiate better terms.
9 min read