Free Auto Loan Calculator - Calculate Car Loan Payments & Interest

Calculate your auto loan payments, total interest, and amortization schedule. Free car loan calculator with down payment, trade-in value, and sales tax options. No registration required.

How to Use Our Auto Loan Calculator

1. Enter the vehicle price or loan amount
2. Input your down payment amount
3. Add trade-in value if applicable
4. Set your interest rate (APR)
5. Choose your loan term (12-84 months)
6. Add sales tax percentage
7. Click calculate to see your monthly payment and total cost

Understanding Auto Loan Payments

Principal and Interest

Your monthly payment consists of principal (the loan amount) and interest (the cost of borrowing). The interest rate (APR) determines how much you'll pay over the life of the loan.

Down Payment Benefits

A larger down payment reduces your loan amount and monthly payment. It may also help you qualify for better interest rates and avoid negative equity.

Trade-in Value

Your current vehicle's trade-in value can be applied toward the down payment, reducing the amount you need to finance for your new car.

Sales Tax Impact

Sales tax is typically added to the vehicle price and financed as part of your loan. This increases your monthly payment and total loan amount.

Auto Loan Terms Comparison

Short-term Loans (12-36 months)

Higher monthly payments but lower total interest. Best for buyers who can afford higher payments and want to own the car quickly.

Medium-term Loans (37-60 months)

Balanced monthly payments and interest costs. Most popular option for new car buyers with moderate budgets.

Long-term Loans (61-84 months)

Lower monthly payments but higher total interest. Suitable for buyers who need lower payments but should consider the total cost.

Auto Loan Tips

Check Your Credit Score

Your credit score significantly impacts your interest rate. Check your credit before shopping for a loan to understand your financing options.

Shop Around for Rates

Compare rates from banks, credit unions, and dealerships. Pre-approved financing can give you negotiating power at the dealership.

Consider Total Cost

Look beyond the monthly payment. Consider the total amount you'll pay over the life of the loan, including interest and fees.

Factor in Insurance and Maintenance

Remember to budget for car insurance, maintenance, and other ownership costs beyond your monthly loan payment.

Frequently Asked Questions

What is a good interest rate for an auto loan?

Interest rates vary based on credit score, loan term, and lender. Generally, rates below 5% are considered good for borrowers with excellent credit.

Should I finance through the dealership or a bank?

Compare both options. Dealerships may offer incentives, but banks and credit unions often have competitive rates. Get pre-approved to compare.

How does my credit score affect my auto loan?

Higher credit scores typically qualify for lower interest rates. A difference of 1-2% in interest rate can save thousands over the loan term.

Is it better to lease or buy a car?

Leasing offers lower monthly payments but no ownership. Buying builds equity and offers more flexibility. Consider your driving habits and financial goals.