Auto Loan Calculator
Monthly Payment: $
Total Payment: $
Total Interest: $
What Is an Auto Loan Calculator and How to Use It
An Auto Loan Calculator is a digital tool that helps you estimate your monthly car payments, total repayment amount, and total interest based on your loan details.
Whether you're buying a new or used vehicle, understanding the full cost of financing is crucial before you commit. This calculator simplifies the math so you can make smarter financial decisions.
How to Use the Auto Loan Calculator
Here’s how to calculate your car payments step-by-step:
Step 1: Enter Loan Amount
Input the total amount you plan to borrow for the car.
Example: If your car costs $28,000 and you pay $3,000 upfront, your loan amount is $25,000.
Step 2: Enter Annual Interest Rate
Type in your loan’s annual percentage rate (APR).
Example: If your lender offers 5% interest, enter 5.
Step 3: Enter Loan Term in Months
This is how long you'll take to repay the loan — usually 36, 48, or 60 months.
Example: A 5-year loan is 60 months.
Step 4: Click "Calculate Payment."
Hit the Calculate Payment button and view:
- Monthly Payment — how much you’ll pay each month
- Total Payment — your total loan cost
- Total Interest — how much extra you pay in interest
Example Calculation
Let’s say:
- Loan Amount:
$25,000 - Interest Rate:
5% - Term:
60 months
You’ll see:
- Monthly Payment:
$471.78 - Total Payment:
$28,306.80 - Total Interest:
$3,306.80
This shows the real cost of the car over time.
Final Thoughts
An auto loan calculator is your best friend when budgeting for a new car. It helps you:
- Compare different loan offers
- Understand how interest affects total cost
- Pick a loan term that fits your monthly budget
Use it early in the car-buying process to avoid surprises at the dealership!
FAQ: Auto Loan Calculator
Q1: Does the calculator include taxes or insurance?
No — it only calculates loan principal and interest. Add taxes and insurance separately.
Q2: Can I use it for used cars too?
Yes! This calculator works for both new and used vehicle loans.
Q3: What if my interest rate is variable?
This tool assumes a fixed interest rate. For variable rates, results may vary over time.
Q4: How do I get my actual interest rate?
Your bank, lender, or dealership will provide your official APR based on your credit score and loan terms.
Q5: What if I make extra payments?
This calculator doesn’t factor in extra payments. To calculate early payoff effects, use an amortization calculator.