Auto Loan Calculator

Considering an auto loan to finance a vehicle purchase? It’s a big financial decision that should be made based on clear insights into the financial aspects of the loan. An auto loan calculator is a perfect tool for obtaining these valuable insights, from the monthly payments to interest costs and more.
Note: The numeric values in the calculator are for illustrative purposes; please enter your inputs
Loan Details
Add advanced info

How to use the Auto Loan Calculator

  • Type in the numeric values for Vehicle price, Down payment, Interest rate, and more into corresponding input fields. Note: If you want to include Sales tax and other fees in the calculation, click "Add advanced info" to reveal more input fields (make sure to switch the toggle button to Yes to enable the “Included in loans” option).
  • Press "Calculate" button to process the data.
  • View your auto loan calculation results shown on the right (on desktops) or below (on mobiles). The results include details about your monthly payment and amortization schedule.
  • To recalculate, enter new data into the input fields or click "Reset" to clear all data.
Your Auto Loan Calculation Results
Monthly payment:
Loan amount$
Total interest cost$
* Upfront payment
Amortization Schedule
The following table shows how your auto loan balance will change over time, based on down payment, vehicle price, loan term, interest rate, and other inputs you have entered.
Expand all years
Payment datePayment
Interest paidPrincipal paidLoan balance

Considering an auto loan to finance a vehicle purchase? It’s a big financial decision that should be made based on clear insights into the financial aspects of the loan. An auto loan calculator is more than a versatile tool, providing valuable insights, including details about the monthly payments, interest costs, total payment of the loan, and more.

What is the Auto Loan Calculator?

An auto loan calculator is an online financial tool designed to aid individuals in accurately estimating vital aspects associated with financing a new or used car. It allows users to input numeric values for variables like loan amount, down payment, estimated interest rate, loan term, and more, then generates an estimate of monthly payments.

Additionally, the calculator offers further insights into the total interest cost, total payment, and a complete amortization schedule over the life of the loan. By understanding how much you’ll need to pay for the lender every month and until the end of the loan term, it becomes easier for you to make informed decisions about your auto financing options.

How to Use an Auto Loan Calculator

Using an auto loan calculator is pretty simple and easy, as long as you are familiar with the typical financial terms included in the tool.

Auto Loan Calculator’s Key Terms Explained

If it’s your first time using the tool, you may want to take a look at the brief explanation for the following key terms:

In the Input fields:

  • Vehicle price

This is the amount you pay or agree to pay for a desired automobile before taxes and fees. Please note that the price is one of the significant inputs in determining the total loan amount and monthly payments.

  • Down payment

This term refers to the initial payment you make when purchasing a new or used automobile. A higher down payment helps reduce the loan amount and interest costs you need to finance the rest of the car.

  • Loan term

The loan term is simply the duration of an auto loan, typically expressed in months. It lets you know how long you'll pay off the borrowed money. A longer loan term means smaller monthly payments but more interest over time, and vice versa.

  • Interest rate

It’s the percentage (%) of an auto loan, reflecting the cost of borrowing. The interest rate determines the total expense of the loan; a higher interest rate means a more expensive loan and more interest paid over time, and vice versa.

  • Loan start date

It’s the date when the auto loan officially begins, and interest begins to accrue, setting the timeline for repayment calculations. Note that the loan start date isn’t necessarily the same as the date for purchasing or receiving your vehicle.

  • Trade-in value

Trade-in value signifies the estimated amount a dealer offers for your old car when you purchase a new one. This value directly impacts the total loan amount, as a higher trade-in value helps reduce your new vehicle's overall price and total loan.

  • Amount owed on trade-in

The “Amount owed on trade-in” represents the remaining balance of the loan on the existing vehicle that you intend to trade in for a new one. This amount is directly subtracted from the trade-in value; a higher amount owed on trade-in means a lower trade-in value and a higher total loan amount.

In the Results section:

  • Monthly Payment

This term refers to the amount of money you pay to your lender each and every month to repay the auto loan. Please note that your monthly payments include both interest and principal.

  • Total interest costs

It’s the cumulative amount of interest paid over the entire loan term of your auto loan. The total interest cost reflects the overall cost of borrowing the money.

  • Total loan payment

Total loan payment is the full amount of money, including overall interest paid, principal, and maybe other fees, that you have to pay over the entire loan term.

  • Amortization Schedule

This is a table that fully outlines the monthly payments of your auto loan, from the start date until the end of the term. The amortization schedule also displays the outstanding balance after each payment.

Instructions on How to Use an Auto Loan Calculator with Trade-in

Step 1. Input data into the respective boxes.

Make sure you type in all the needed data for the vehicle price, loan term, estimated interest rate, etc. Remember to enter values for the amount owed on trade-in and trade-in value if they are available.

Note: To add sales taxes and other fees to the calculation, simply tap or click "Add advanced info” to reveal additional input fields.

Step 2. Select the Calculate button and wait a second for the tool to display the results.

Step 3. View your auto loan calculation results.

Step 4. Adjust the results (if you want) by returning to the calculator’s input fields and adjusting your input values. When finished, be sure to press the Calculate button again to reveal new results.

Step 5. If you want to start a brand-new calculation, select the Reset button and repeat the above steps.

Benefits of Using an Auto Loan Calculator

As a free online financial tool, the auto loan monthly payment calculator offers various distinct benefits and advantages, including the following:

  • It helps prevent overspending.

The tool generates deep insights into an auto loan based on your provided inputs. Looking at loan calculation results, you can accurately estimate the overall cost of the loan, how much you have to pay to your lender each month, and how long until you pay off the loan. With these insights, you’ll find out the car’s price range and down payment that you can afford, what loan terms best suit your budget and financial goals, etc.

  • It assists you in negotiating:

The free auto loan calculator allows you to compare various options for the down payment, loan term, and estimated interest rate to determine the most suitable and cost-effective financing solution for your vehicle purchase. You can use these insights to negotiate with your dealer or check if their offer is fair and reasonable.

  • It’s convenient and helps save lots of time.

With a calculator for auto loan, you do not need to manually do complex math to calculate car loan details. The tool automates the process and quickly provides accurate results, saving lots of time and effort. It allows you to instantly compare different loan options and scenarios with a few clicks.

FAQs about the Auto Loan Calculator

Is 5% good for an auto loan?

Yes. A 5% rate for an auto loan is considered great. According to Experian, via CNN, the average interest rate in Q3 2023 for an auto loan was 11.35% for used vehicles and 7.03% for new ones.

However, it’s worth noting that the interest rate you receive for your auto loan depends on various factors, including your credit scores. The lower your credit score, the higher the auto loan rate, and vice versa.

What is too high of an interest rate for a car?

There is no definitive answer to what is too high of an interest rate for a car loan, as it depends on various factors, such as your credit history, the loan term, and the car itself. To know if an interest rate is too high or not, you should compare it with the national average for your credit score range.

For example, by Q3 2023, the average auto loan rate for borrowers with credit scores ranging from 661 to 780 was 6.88% and 9.33% for financing a new or used car, respectively. So, if the interest rate you are offered is much higher than these numbers, it’s considered too high. Please keep in mind that rates above 10% or higher can enormously increase the overall cost of borrowing and lead to higher monthly payments.

How does interest on a car loan work?

Interest on a car loan is the cost you pay the lender for borrowing money to finance a new or used vehicle. Each month, a portion of your payment goes towards repaying the principal, and the rest covers the interest. Over time, more of your payment covers the principal, gradually reducing the outstanding balance and the corresponding interest costs.


To conclude, an auto loan calculator is a handy tool for anyone considering financing a new or used vehicle. With this tool, you can effortlessly estimate the monthly payments, the overall interest costs, and the total loan payment based on your input values. One of the biggest benefits of this auto loan amortization calculator is that it assists users in comparing various loan scenarios, making it a lot easier for you to make informed decisions about your car financing options. Wonder “How much can I afford for an auto loan”? If so, try calculating it with our car auto loan calculator now!