Auto Loan Calculator
Calculate your monthly car payments, total interest costs, and amortization schedule. Compare different loan terms and down payment options to find the best auto financing for your budget.
Principal vs Interest
Payment Breakdown Over Time
| Year | Principal | Interest | Total Payments | Balance |
|---|
Auto Loan Calculator Results
Loan Parameters
Vehicle Price: $30,000
Down Payment: $5,000
Trade-In Value: $0
Sales Tax: 7%
Loan Amount: $0
Interest Rate: 5.5%
Loan Term: 60 months
Start Date: 2026-01-29
Payment Summary
| Metric | Value |
|---|---|
| Monthly Payment | $0.00 |
| Total Principal | $0 |
| Total Interest | $0 |
| Total Cost | $0 |
| Payoff Date |
Amortization Schedule
| Payment # | Date | Payment | Principal | Interest | Balance |
|---|
Note: Early in the loan, most of your payment goes toward interest. As you pay down the principal, more of each payment goes toward reducing the loan balance.
Understanding Auto Loans
An auto loan is a secured loan used to purchase a vehicle, with the car serving as collateral. Our calculator helps you understand the full cost of financing a vehicle, including how much interest you'll pay over the life of the loan and how different loan terms affect your payments.
Key Auto Loan Components
Principal
The amount borrowed to purchase the vehicle, excluding interest. This is calculated as:
Vehicle Price - Down Payment - Trade-In Value + Sales Tax
Interest Rate (APR)
The annual cost of borrowing expressed as a percentage. Your rate depends on:
- Credit score
- Loan term
- Vehicle age (new vs used)
- Market conditions
How Auto Loan Payments Work
Amortization Explained
Auto loans use amortization, meaning each payment covers both principal and interest, with the proportion shifting over time. Early payments are mostly interest, while later payments apply more to principal.
| Payment Phase | Principal | Interest | Example (5-year loan) |
|---|---|---|---|
| Early Payments | Small portion | Large portion | Month 1: $75 principal, $125 interest |
| Mid-Loan Payments | Balanced | Balanced | Month 30: $100 principal, $100 interest |
| Final Payments | Large portion | Small portion | Month 60: $195 principal, $5 interest |
The Power of Extra Payments
Example Scenario
$25,000 loan at 6% for 5 years (60 months)
- Regular payment: $483/month
- Total interest: $3,967
- Payoff date: 5 years
With $50 Extra Monthly
Same loan with additional $50/month
- New payment: $533/month
- Interest saved: $1,012
- Payoff date: 4 years 3 months
Choosing the Right Loan Term
Loan term significantly impacts both your monthly payment and total interest. Here's how different terms compare:
| Term | Monthly Payment | Total Interest | Best For |
|---|---|---|---|
| 36 months (3 years) | Highest | Lowest | Those who can afford higher payments |
| 48 months (4 years) | Moderate | Medium | Balance of affordability and interest savings |
| 60 months (5 years) | Lower | Higher | Those needing more affordable payments |
| 72 months (6 years) | Lowest | Highest | Those stretching budgets (not recommended) |
Loan Term Tip
Choose the shortest term you can comfortably afford. While longer terms have lower monthly payments, you'll pay significantly more in interest. For example, a $30,000 loan at 5%:
- 3-year term: $899/month, $2,375 total interest
- 5-year term: $566/month, $3,968 total interest
- 6-year term: $483/month, $4,796 total interest
Frequently Asked Questions
About This Auto Loan Calculator
Our comprehensive auto loan calculator helps you make informed financing decisions by providing:
- Accurate monthly payment calculations
- Detailed amortization schedules
- Visual breakdowns of principal vs interest
- Impact analysis of extra payments
- Comparison of different loan terms
All calculations are performed in your browser - we don't store your financial data. For the most accurate results, enter your actual loan details including any fees that may be rolled into the loan amount.
Get pre-approved before visiting dealers to strengthen your negotiating position.
Aim for a loan term no longer than 60 months to avoid excessive interest.
Check for prepayment penalties before making extra payments.
Consider gap insurance if your down payment is less than 20%.
Compare total loan costs, not just monthly payments.
New Car Rates (2023)
Used Car Rates (2023)
Rates vary by lender, loan term, and market conditions. Check with multiple lenders for the best rate.
$25,000 Loan at 6%
Total Interest Paid
Amortization
The process of paying off debt with regular payments over time.
APR
Annual Percentage Rate - the true cost of borrowing including fees.
LTV (Loan-to-Value)
The loan amount compared to the vehicle's value, expressed as a percentage.
Gap Insurance
Covers the difference between what you owe and the car's value if it's totaled.
Upside Down
When you owe more on your loan than the car is worth.