Auto Loan Calculator
Estimate your monthly car payments with our comprehensive auto loan calculator.
Loan Inputs
Loan Results
How to Use the Auto Loan Calculator
- Enter Vehicle Details: Start by entering the full price of the vehicle you are considering.
- Provide Loan Information: Input your estimated Annual Interest Rate (APR), the desired Loan Term in years, the amount of your Down Payment, and the value of any Trade-in you might have.
- Add Extra Costs: Don't forget to include the local Sales Tax percentage and any additional costs like title, registration, and dealership fees.
- Analyze Your Results: The calculator will instantly show your estimated Monthly Payment and the Total Interest you will pay over the life of the loan. The chart provides a visual breakdown of the total cost, separating the principal, interest, taxes, and fees.
Understanding Your Auto Loan
An auto loan is a significant financial commitment, and understanding its components is key to making an informed decision. This calculator helps you see the complete picture. The **Principal** is the amount you borrow after your down payment and trade-in are subtracted from the vehicle's price. The **Annual Interest Rate (APR)** is the cost of borrowing money, expressed as a yearly rate. A lower APR can save you thousands over the life of the loan. The **Loan Term** is how long you have to repay the loan. A longer term will result in lower monthly payments, but you will pay significantly more in total interest. Conversely, a shorter term increases your monthly payment but saves you money on interest. This calculator also accounts for **Sales Tax** and **Fees**, which are often rolled into the total loan amount, increasing both your principal and the total interest paid. By adjusting these values, you can see how different scenarios affect your budget and the overall cost of your new vehicle.
Key Loan Terms Explained
- Principal: The initial amount of money borrowed to purchase the vehicle, after all deductions like down payments.
- Amortization: The process of paying off a loan over time through regular payments. Each payment consists of both principal and interest. The chart visually represents this breakdown over the entire loan.