Our auto loan calculator helps you estimate your monthly car payment and total loan cost based on the vehicle price, interest rate, and loan term. Experiment with different scenarios to find the best financing option for you.
Auto Loan Calculator
Estimate your monthly car payment and total loan cost based on your loan details.
Your Loan Estimate
Monthly Payment: $0.00
Loan Amount: $0.00
Total Interest Cost: $0.00
Total Loan Payments: $0.00
Payoff Date: 00/0000
Amortization Schedule
| Payment Date | Principal | Interest | Monthly Total | Balance |
|---|
About Our Car Loan Interest & Payment Calculator
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FOMBL’s auto loan calculator goes beyond basic inputs such as loan amount, term, and interest rate. You can also include a down payment amount, the trade-in value, any remaining balance on a trade-in, the sales tax percentage, title and registration fees, and other costs—plus whether you want to finance these fees into the loan amount.
Our goal is to provide a realistic, detailed view of the cost of financing a car, including an amortization schedule that breaks down how payments will be distributed over time.
What to Know About Borrowing for a Car
If you can’t or don’t want to pay for a new car or truck in cash, you can finance the total amount through a loan. This covers the cost of the vehicle at purchase, allowing you to drive it while making monthly payments to repay the loan.
Steps in the Loan Process
- Applying for a Loan
You can apply online, at a bank, credit union, financial institution, or directly at a dealership. - Loan Review
The lender evaluates your credit score, financial history, vehicle age, and other factors to determine approval and interest rate. - Approval or Denial
The response may be immediate or take a few hours or days if additional information is required. - Loan Issuance
If approved, the contract is finalized, and funds are released to cover the car’s cost. You take possession and make monthly payments, including interest, until the loan is fully repaid.
Learn More About Getting a Car Loan
Factors That Affect Your Auto Loan
💰 Vehicle Price
The final price may differ from the sticker price (MSRP). Subtract manufacturer discounts or dealer-negotiated savings. Include additional costs like optional add-ons and destination fees.
For used cars, pricing can be less predictable. You can negotiate values and check online pricing guides to determine fair market value.
💳 Interest Rate
If you’re preapproved for a loan, enter the rate offered. Otherwise, use the average interest rate for your credit score. Below are Experian’s averages (VantageScore model):
| Credit Score | Average APR (New Car) | Average APR (Used Car) |
|---|---|---|
| 781-850 (Super Prime) | 5.08% | 7.41% |
| 661-780 (Prime) | 6.70% | 9.63% |
| 601-660 (Non-Prime) | 9.73% | 14.07% |
| 501-600 (Subprime) | 13.00% | 18.95% |
| 300-500 (Deep Subprime) | 15.43% | 21.55% |
🗓️ Loan Term
Auto loans typically range from 24 to 84 months. FOMBL recommends a maximum term of 60 months to minimize excessive interest costs. A longer term lowers the monthly payment but increases the total loan cost due to interest.
💵 Down Payment
While some lenders do not require a down payment, we recommend at least 20% for new cars and 10% for used cars. If that’s not possible, contribute as much as possible without depleting savings. This reduces the loan amount and overall interest paid.
♻️ Trade-in Value
If you plan to trade in a used vehicle, enter its estimated value. Check online appraisal sites and ensure you use the trade-in value, not the retail price.
📉 Amount Owed on Trade-in
If you still owe money on your trade-in, enter the remaining balance. This payoff amount will be factored into your new loan.
Tips for Using the Auto Loan Calculator
- Compare Offers: Get quotes from multiple lenders within two weeks to minimize credit score impact. Enter offered rates into the calculator to find the most affordable option.
- Choose the Shortest Term Possible: Longer terms reduce monthly payments but increase total interest costs.
- Consider Additional Costs: Besides the vehicle price, factor in state taxes, dealer documentation fees, and registration fees for a complete cost estimate.
📌 FOMBL Tip: For example, financing a $40,000 new car over 84 months at 9% APR results in $623 monthly payments and $12,369 in total interest. Reducing the term to 60 months raises payments to $811 but lowers total interest to $8,600.
Types of Auto Financing
This calculator can be used for most vehicle financing types:
- Purchase Loans: Used to buy new or used vehicles.
- Refinancing: Replaces an existing auto loan, usually with better rates.
- Leasing: Allows you to drive a car for a set period without the obligation to buy at the end of the contract.
Frequently Asked Questions
How Is a Monthly Car Payment Calculated?
The lender provides the total financed amount (principal) and the interest charged on the loan. Early in the term, more of the payment goes toward interest, while later payments contribute more to the principal. This process is called amortization.
Loan Payment Calculation
Monthly payments are calculated by dividing the total loan amount (including interest) by the term length in months. For example:
- $30,000 loan over 60 months at 7% interest:
- Total interest: $6,497.40
- Monthly payment: $608.29
How Much Car Can I Afford?
- Ideally, your monthly car payment should not exceed 10% of your take-home income.
- Total car expenses should stay below 20% of your take-home income, including maintenance, fuel, and insurance.
Use our car affordability calculator to determine a loan amount that fits your budget.