Auto loan payment calculator – NerdWallet


Our auto loan calculator helps you estimate your monthly auto loan payment. You can select average interest rates per credit score or fill out a rate yourself. You can enter the car price, down payment amount, and loan term to see how the variations will affect the following loan details:

  • Amount of your monthly auto loan (less taxes and fees)

  • Total amount of interest you will pay

  • Your total cost (car price and interest) over the life of the loan

For example, you might think you can afford a loan of $ 20,000 for a new car.

A 48 month loan for the most creditworthy borrowers would be 3% or less. At this rate, you would pay around $ 440 per month and $ 1,250 in interest over the life of the loan. A subprime rate could be 11%, making payments around $ 515 – and you would be paying more than $ 4,500 in interest.

Many people reduce their payments by extending the term of the loan. If you change the term to 60 months, the payments on that $ 20,000 loan at 11% drop from $ 515 to $ 435. However, you would pay almost $ 6,100 in interest, or an additional $ 1,600, to do so.

How to use the auto loan calculator

Here is a guide to the information you will need to enter into the auto loan payment calculator.

Car price: In this field, enter the price you expect to pay for the car. To estimate new car prices, you can start with the vehicle sticker price (also known as MSRP). Subtract savings from dealer negotiations or manufacturer discounts. Then add the cost of options and the “destination fees” charged on new cars.

For used cars, estimating the selling price is a bit trickier. You can start with the seller’s asking price, but you may be able to negotiate it lower. To get an idea of ​​a fair price, use online pricing guides or check local online classifieds for comparable cars.

Interest rate: There are several ways to determine the interest rate to enter. At the top of the calculator, you can select your credit score from the drop-down menu to view average auto loan rate. You can also check lenders online for prices. If you are pre-qualified or pre-approved for a loan, simply enter the rate that is offered to you.

Exchange and deposit: Enter the total amount of money you are investing in the new car, plus the trade-in value of your existing vehicle, if applicable. You can use online sites for quotes and pricing help. When using a price guide, be sure to check the trade-in value and not the retail price (the price at which the dealership is selling the car). You can also get cash purchase offers from your local CarMax or online from services such as Vroom or Carvana, as a reference.

Number of months : Enter the loan term (how long you have to repay the loan). Auto loans are granted in 12 month increments, with common terms being 24, 36, 48 and 60 months. The longer your term, the more interest you will pay overall.

Some more tips on using the auto loan calculator

In addition to looking at the result of the monthly car payment, be sure to consider the total amount you will be spending on the car loan. If you use the calculator to compare loans, a lower payment can be attractive, but it can also lead to much higher interest and overall cost.

Be aware that you may have costs in addition to the calculator’s total amount paid result, as it does not reflect state and local taxes, dealer documentation fees (which can vary widely), and registration fees. You can search online or call the dealership and ask for estimates of these costs in your area.

The Auto Loan Calculator is a tool that does more than just show you a monthly auto loan payment. Use it to compare offers from lenders and try out different interest rates and loan terms. The knowledge you gain can help you negotiate with lenders and dealers, and ultimately choose the best auto loan for your financial situation.

Payments on a $ 25,000 auto loan

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