Loan Details
Monthly Payment
Payment Breakdown
Amortization Schedule
Loan Term Comparison
| 36 months | 48 months | 60 months | 72 months |
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New vs Used Interest Rate Comparison
Used car rates are typically 1-2% higher than new car rates. This comparison shows how the rate difference affects your total cost.
| New Car Rate | Used Car Rate (+1.5%) | Difference |
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How to Use This Auto Loan Calculator
Our auto loan calculator gives you a complete picture of what financing a car will actually cost. Enter the vehicle price, your down payment, trade-in value, sales tax rate, interest rate, and preferred loan term to instantly see your monthly payment, total interest, and total cost of the loan.
The payment breakdown pie chart shows how much of your total cost goes toward principal versus interest. The amortization schedule reveals how your balance decreases with each payment, and the term comparison table helps you pick the right loan length for your budget.
Understanding Your Car Payment
Your monthly car payment depends on several factors that determine how much you borrow and how much interest you'll pay over the life of the loan:
- Vehicle Price: The sticker or negotiated price of the car. Negotiating the price down even a few hundred dollars reduces both your loan amount and the sales tax you owe.
- Down Payment: Cash you pay upfront. A 20% down payment is recommended to avoid being underwater on the loan and to secure better interest rates.
- Trade-in Value: The amount your current vehicle is worth as a trade-in. This reduces the price before sales tax is calculated, saving you money on both the loan and taxes.
- Sales Tax: Applied to the net vehicle price (after trade-in in most states). Rates vary from 0% to over 10% depending on your state and local taxes.
- Interest Rate (APR): The annual cost of borrowing. Rates vary based on your credit score, the vehicle condition (new vs used), and the loan term.
- Loan Term: The repayment period, typically 24-84 months. Shorter terms mean higher payments but less total interest.
Choosing the Right Loan Term
The loan term you choose has a major impact on both your monthly budget and the total cost of the vehicle. A 36-month loan has the highest monthly payment but saves the most on interest. A 72 or 84-month loan lowers your monthly payment significantly but can cost thousands more in total interest — and you may owe more than the car is worth for much of the loan.
Financial experts generally recommend keeping your auto loan to 60 months or less for new vehicles. For used cars, aim for 36-48 months to avoid paying interest on a vehicle that's rapidly depreciating. Use the term comparison table above to see the exact tradeoffs for your specific situation.
New vs Used Car Financing
New car loans typically come with lower interest rates because the vehicle serves as better collateral for the lender. Used car rates are generally 1-3% higher, but the lower purchase price of a used vehicle can offset the higher rate. Consider the total cost of ownership — including depreciation, insurance, and maintenance — when deciding between new and used.
Pre-approved financing from a bank or credit union often beats dealership financing. Get quotes from multiple sources before visiting the dealership, and don't forget to factor in the total cost rather than just the monthly payment when comparing offers.