Auto Loan Calculator

Introduction

Purchasing a vehicle often involves financing through an auto loan. Determining your monthly payment, total interest paid, and overall cost before committing helps you make informed decisions. Our Auto Loan Calculator provides instant estimates based on loan amount, APR, and term, enabling you to budget effectively and compare offers from different lenders.

How to Use

1. Input the Loan Amount you wish to borrow.
2. Enter the Annual Interest Rate (APR) offered by your lender.
3. Select the Loan Term in years.
4. Click Calculate to view your estimated monthly payment, total interest, and total cost.

Calculation Method

We use the standard amortization formula:

Payment = (r × P) / (1 − (1 + r)−n)

Where:

• r = monthly interest rate (APR ÷ 12)
• P = loan principal
• n = total number of payments (term × 12)

Practical Considerations

• Down Payment: A larger down payment reduces your monthly payment and total interest.
• Loan Term: Shorter terms yield higher payments but lower interest costs; longer terms lower payments but increase interest.
• Credit Score: Better credit often secures lower APRs. Check resources at CFPB.
• Lender Fees: Include origination fees and prepayment penalties when evaluating offers.

FAQs

1. Can I afford this loan?

Use this calculator to simulate different loan amounts and APRs to find a payment that fits your budget.

2. What if I pay extra each month?

Extra payments reduce principal faster, lowering total interest. Try our Prepayment Calculator.

3. How does term length affect cost?

Longer terms lower payments but accumulate more interest over time. Choose a balance that suits your financial goals.

4. Are taxes and fees included?

This tool estimates finance charges only. Add taxes and fees separately to your calculations.

5. Explore more tools

Find additional calculators at Explore more tools.

6. Disclaimer

Calculations are estimates. Actual terms depend on lender approvals, credit history, and market conditions. Always confirm details with your lender.