Automobile Loan Payment Calculator 1

Automobile Loan Payment Calculator

Calculate your monthly car payment and total loan costs

Vehicle & Loan Details

Vehicle Price

Down Payment

Trade-In Value

Sales Tax Rate

Loan Terms

Loan Term (months) 24 months 36 months 48 months 60 months 72 months 84 months

Interest Rate (APR)

Credit Score Range (optional) Select credit score range 300-579 (Poor) 580-669 (Fair) 670-739 (Good) 740-799 (Very Good) 800-850 (Excellent)

Loan Calculation Results

Monthly Payment

$0.00

Estimated monthly payment including taxes

Total Loan Cost

$0.00

Total amount paid over the loan term

Total Interest

$0.00

Total interest paid over the loan term

Loan Composition

Amortization Schedule

Year	Principal Paid	Interest Paid	Remaining Balance

This calculator provides estimates based on your inputs. Actual loan terms may vary. Print Results

A Car Loan Payment Calculator helps you determine your monthly payments, total interest costs, and compare different loan options when financing a vehicle purchase.

1. Key Loan Terms You Need to Know

Inputs Required

1. Loan Amount (Vehicle price minus down payment + fees)

2. Interest Rate (APR) - Annual Percentage Rate (e.g., 5.99%)

3. Loan Term - Typically 36-84 months (3-7 years)

4. Down Payment - Initial cash payment (recommended: 10-20%)

5. Trade-In Value - If applicable (reduces loan amount)

6. Sales Tax & Fees - Varies by state (typically 3-10%)

Outputs Calculated

✅ Monthly Payment
✅ Total Interest Paid
✅ Total Loan Cost (Principal + Interest)
✅ Amortization Schedule (Breakdown of payments)

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2. How Auto Loan Payments Are Calculated

Formula

The standard auto loan payment formula is:

Monthly Payment = P × [ r(1+r)^n ] / [ (1+r)^n - 1 ]

Where:

• P = Principal loan amount

• r = Monthly interest rate (APR ÷ 12)

• n = Number of months

Example Calculation

• Vehicle Price: $30,000

• Down Payment: $5,000

• Loan Amount: $25,000

• Interest Rate (APR): 6%

• Loan Term: 60 months (5 years)

Step 1: Convert APR to Monthly Rate
6% ÷ 12 = 0.005 (0.5% per month)

Step 2: Plug into Formula
Payment = $25,000 × [0.005(1+0.005)^60] / [(1+0.005)^60 - 1]
= $25,000 × [0.005(1.3488)] / [1.3488 - 1]
= $25,000 × 0.006744 / 0.3488
= $25,000 × 0.01933
= **$483.32/month**

Total Interest Paid = ($483.32 × 60) - $25,000 = **$4,000**

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3. Auto Loan vs. Lease vs. Cash

Factor	Loan	Lease	Cash
Monthly Cost	Higher (but you own)	Lower	None
Ownership	Yours after payoff	No equity	Immediate
Mileage Limits	None	Yes (penalties)	None
Maintenance	Your responsibility	Often covered	Your responsibility
Flexibility	Can sell anytime	Early termination fees	Full control

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4. How to Get the Best Auto Loan

🔹 Check Your Credit Score First (720+ gets best rates)
🔹 Compare Lenders (Banks, credit unions, dealerships)
🔹 Make a Large Down Payment (Reduces interest)
🔹 Choose the Shortest Term You Can Afford (Less interest)
🔹 Pre-Qualify (Soft Credit Check) – Avoid multiple hard inquiries

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5. Hidden Costs to Watch For

⚠ Dealer Fees (Doc fee, admin charges)
⚠ Gap Insurance (If loan > car value)
⚠ Prepayment Penalties (Some lenders charge for early payoff)
⚠ Extended Warranties (Often overpriced)

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6. Best Auto Loan Calculators

🔸 Bankrate Auto Loan Calculator
🔸 NerdWallet Auto Affordability Calculator
🔸 Edmunds Auto Loan Calculator

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7. Should You Refinance Your Auto Loan?

✔ Interest Rates Dropped (Can you get a lower APR?)
✔ Credit Score Improved (Better terms available?)
✔ Want Lower Payments? (Extend term, but pay more interest)