Car Loan Calculator

Calculate monthly car loan payments, total interest costs, and overall vehicle purchase costs. Analyze different loan terms, down payments, and interest rates to make informed auto financing decisions.

About Car Loan Calculator

Understanding Car Loans

A car loan is a financial agreement between a borrower and a lender where the lender provides funds to purchase a vehicle. The borrower agrees to repay the loan amount plus interest over a specified period. Key factors affecting your car loan include the vehicle price, down payment, interest rate, and loan term. A larger down payment typically results in lower monthly payments and less total interest paid over the loan term.

Financial Considerations

Loan Terms

Shorter terms: Higher payments, less interest
Longer terms: Lower payments, more interest
Trade-off between affordability and cost
Early payment options

Interest Rates

Credit score impact
New vs. used vehicle rates
Fixed vs. variable rates
Dealer financing vs. bank loans

Vehicle Financing Tips

Before Applying

Check your credit score
Compare multiple lenders
Consider pre-approval
Calculate affordability

Additional Costs

Insurance requirements
Registration fees
Maintenance expenses
Fuel and operating costs

Frequently Asked Questions

How much should I put down on a car?

A common recommendation is to put down at least 20% for a new car and 10% for a used car. A larger down payment reduces your monthly payments and total interest cost, and helps avoid being "upside down" on the loan.

What loan term should I choose?

While longer terms (72-84 months) offer lower monthly payments, shorter terms (36-60 months) typically have better interest rates and cost less overall. Choose a term that balances affordable monthly payments with reasonable total costs.

Learn More

CFPB Auto Loans Guide