What auto can you afford? Use our car loan calculator and find out what you are looking at monthly, and how that is affected by factors like a trade-in, money down, or length of loan.
$0/mo
Breakdown
Car price
$
Down Payment
-$
Trade-in value
-$
Estimated sales tax (0.00%)
+$
Other fees*
not included
Total loan amount
$
Total interest paid (over life of loan)
+$
Total loan & interest paid
$
Monthly payment
$
*This car loan calculator is for informational and general estimate purposes only, and doesn't include other fees which are factored into an auto lease or purchase, like title or taxes.
When comparing different interest rates for your auto loans, you can use our auto loan calculator to estimate the actual cost of your loan. First, you must provide the amount you want to borrow, APR, sales tax, and loan length. You can add the downpayment and the trade-in value if you want more precise estimates. Our auto loan calculator will provide you with an estimated monthly payment breakdown so you can figure out how much a car you can afford. As the estimate doesn't include any additional fees that your lender might ask for, your monthly payment can vary based on the lender you choose.
Here's more info on the information you should provide for the calculator to get an estimate:
In this field, you must enter the amount you expect to pay for the car.
To estimate the price of a new car, begin with the sticker price, also known as the MSRP. To calculate your final cost, simply deduct any savings you receive from dealer negotiations or manufacturer rebates. Next, include additional expenses like vehicle upgrades and other applicable fees while purchasing new cars.
Estimating the sale price of used cars can be a bit challenging. You can begin by considering the price your seller is asking for, but there may be room for negotiation to lower it. To determine a reasonable price, refer to online pricing guides or browse local online classified ads to find similar cars.
In this field, you can input the total amount of money you intend to contribute towards purchasing the car. Some lenders don't require a down payment, but putting down at least 20% for a new car or 10% for a used car is wise.
We recommend contributing as much as possible without burning a hole in your pocket if you cannot afford this specific amount. Making a down payment, regardless of the amount, will reduce the amount you need to finance and the overall cost of the loan.
The trade-in value refers to the amount the dealer is willing to offer for your car, while the retail cost is the price at which the dealer sells the car. You can also receive cash purchase offers from online retailers like CarMax, Carvana, or Vroom.
When using a pricing guide, it's important to check the trade-in value rather than the retail cost. These offers can be a starting point for your car-selling process and will decrease the amount you need to borrow.
The loan term length refers to the amount of time, usually months, you will take to repay your auto loan. Typically, loan terms can be anywhere from 12 to 84 months and vary according to your lender.
If you choose to extend the duration of your car loan, it will reduce your monthly payments. However, it's important to note that you will pay more interest over time. There is also a possibility that you may end up owing more money on your loan than the actual value of your car.
The interest rate is the percentage you will pay yearly to borrow money. The interest and annual percentage rates (APR) are not the same. The interest rate only represents the cost of borrowing, while the APR includes the borrowing cost and any additional fees.
Several factors can influence the interest rate that a lender may offer you. These factors include your credit scores and credit history, the loan amount, the loan term length, and the size of your down payment. Figure out the interest rate you are most comfortable with, and then use the following formula to calculate your auto loan APR.
APR = (Periodic Interest Rate * 365 Days) * 100
Here are some ways to put the auto loan calculator results to good use:
You can decline the loan offered by a dealership or online car retailer. Instead, you can bring financing from a bank, credit union, or another lender. However, to minimize the impact on your credit score, applying for preapproved loan offers from multiple lenders within two weeks is better.
To compare monthly payments and total loan costs, input the necessary info from different loan offers into the auto loan calculator. When purchasing a vehicle from a dealership, bring the loan offer with the lowest interest rate and check if the dealer can provide a better offer. You can use the estimate the auto loan calculator offers as a reference.
Lenders and car dealers frequently lower monthly car payments by extending the loan duration. If you're considering a lower payment for an auto loan, it's important to look beyond just the monthly amount. By using a calculator, you can get a better picture of the total cost of the loan, taking into account different loan terms.
Lender | Estimated APR | Loan amount | Min credit score |
---|---|---|---|
Consumers Credit Union - Used car purchase loan | 5.44-21.24% | $7,500-No max. | 620 |
LightStream - Used car purchase loan | 6.49-12.49% | $5,000-$100,000 | 660 |
MyAutoloan - Used car purchase loan | 3.94-21.00% | $8,000-$100,000 | 575 |
Carvana - Used car purchase loan | 3.90-27.90% | $1,000-$100,000 | 450 |
Capital One - Used car purchase loan | N/A | $4,000-Max. not disclosed | Did not disclose |
Autopay - Used car purchase loan | 1.99-17.99% | $2,500-$100,000 | 560 |
Bank of America - Used car purchase loan | N/A | $7,500-Max. not disclosed | Did not disclose |
CarMax - Used car purchase loan | 2.95-26.00% | $500-$100,000 | None |
PenFed Credit Union - Used car purchase loan | 5.64-11.34% | $500-$100,000 | Did not disclose |
Digital Federal Credit Union - Used car purchase loan | 3.74-13.24% | $2,500-$500,000 | Did not disclose |
Vroom - Used car purchase loan | N/A | $5,000-$100,000 | Did not disclose |
Chase Auto - Used car purchase loan | N/A | $4,000-Max. not disclosed | Did not disclose |
Consumers Credit Union - New car purchase loan | 5.19-17.54% | $7,500-No max. | 620 |
MyAutoloan - New car purchase loan | 3.69-21.00% | $8,000-$100,000 | 575 |
LightStream - New car purchase loan | 6.49-12.49% | $5,000-$100,000 | 660 |
Capital One - New car purchase loan | N/A | $4,000-Max. not disclosed | Did not disclose |
Autopay - New car purchase loan | 1.99-17.99% | $2,500-$100,000 | 560 |
Bank of America - New car purchase loan | N/A | $7,500-Max. not disclosed | Did not disclose |
Digital Federal Credit Union - New car purchase loan | 3.74-13.24% | $2,500-$500,000 | Did not disclose |
PenFed Credit Union - New car purchase loan | 4.44-10.19% | $500-$100,000 | Did not disclose |
Chase Auto - New car purchase loan | N/A | $4,000-Max. not disclosed | Did not disclose |
With the number of options available, choosing the right auto loan for you can be quite overwhelming. It needs a lot of homework and research. While you are at it, here are some of the things to consider while applying for an auto loan:
To begin with, figure out the amount of money you can comfortably afford to finance a car. Using tools such as an auto loan calculator can assist you in getting a better understanding. However, it is important to remember that owning a car involves more than just the initial purchase price. You should also consider additional expenses such as auto insurance, fuel, and maintenance fees.
It may be tempting but try not to extend your loan term just to lower your monthly car payment. You might pay thousands of dollars extra in interest throughout the loan if you don't pay attention.
It's helpful to shop around and obtain loan estimates from multiple lenders to find a loan that suits your budget. Financing through a dealership may seem convenient, but you might pay a higher interest rate due to dealer markups.
Try getting quotes from various lenders such as banks, credit unions, and online lenders to make things easier. It allows you to compare their offers and find the best option. Getting prequalified or preapproved for a car loan can be beneficial. But it does not guarantee that you will receive a loan.
However, it can give you an idea of the loan amount, interest rate, and terms you may be eligible for. Please remember that the loan terms may change after you submit your complete auto loan application.
If you're having difficulty getting approved for a loan, one option to consider is finding a co-signer, as it increases the possibility of getting approved. If not, you still have a couple of options to consider. One option is to save more money for a bigger down payment. Another is to buy a cheaper car and focus on improving your credit.
In most car loans, each payment is divided into two parts. One part goes towards the principal (the amount you borrowed), and the other goes towards the interest. The amount of interest you pay each month is determined by the loan's current balance.
During the initial stages of a loan, when the amount you owe is greater, you will be required to pay higher interest. As you make regular payments towards the balance, the amount of interest included in each monthly payment decreases. Here's how you calculate your monthly auto loan interest:
Monthly interest = (interest rate /12) × loan balance
Your credit score highly influences the APRs you get. Borrowers with the highest credit scores (780 and 850) can expect rates around 4.75%, while those with lower scores (300 to 500) may face rates as high as 13.42%. Your auto loan's APR rates fall within the average limits, so they can be considered a good APR.
Credit Score Range | Average New Car Rate |
---|---|
300 - 500 | 13.42% |
501 - 600 | 10.79% |
601 - 660 | 8.12% |
661 - 780 | 5.82% |
781 - 850 | 4.75% |
The price you pay for the car will be more than what is displayed on the sticker on the car window. When calculating the cost of a vehicle, it's important to consider additional expenses like taxes, title fees, and future vehicle maintenance.
The repayment terms for loans can vary from 24 to 84 months. Choosing a longer loan term will help you with the monthly payments but not with the interests. Additionally, it's important to consider that opting for a longer term could result in you being committed to the same vehicle for up to seven years.
Refinancing your current loan is a great option if you want to save money and keep your vehicle. If you initially signed off at a dealership or if your credit has improved, you may want to consider this option. It could potentially offer you a better interest rate and loan term.
It's helpful to have a down payment ready to lower the overall amount you need to finance. Experts typically recommend a down payment of 20 percent when buying a car. However, purchasing a car with a down payment of as low as 10 percent is possible. If you borrow less money, you will save more on interest.
Buying means acquiring ownership of an asset or property. Meanwhile, leasing is when someone is permitted to use an asset or property on behalf of the owner.
Leasing a vehicle means paying to use it for a specific period of time. Most leases typically last for either 24 or 36 months, although it is possible to find even longer leases. There are limitations on the number of miles you can drive and the modifications you can make to your vehicle. There will be different fees that you need to pay. After your lease period is over, you can either return the vehicle to the dealer or buy it at a predetermined price stated in the lease contract.
When you purchase a car, you automatically become the owner. If you pay for something with cash or finance your purchase and fully repay the loan, you will own it. You have complete control over the vehicle and can choose to keep it, trade it in, sell it, or give it away.
Before taking a car from the dealership, you should consider whether you should lease or buy it. When considering a vehicle, there are three main factors to consider.
First, think about how many miles you drive each year. Second, consider the purpose of the vehicle. And finally, determine how much you can comfortably spend every month. Buying may be the best option if you want complete ownership of the vehicle and can afford a higher monthly cost. If you value the ability to choose from different types of vehicles and can adhere to the mileage limit, leasing might be the best option for you.
Leasing a vehicle is similar to buying one, as you will make monthly payments throughout your contract. When you make a purchase, there is hope for a brighter future where you won't have to make any more payments. If you choose to lease a car without planning to buy it, you will have to keep making monthly payments without ever owning the car.