Loan payment

Auto Loan Payment Calculator – NerdWallet

Our auto loan calculators help you estimate what your monthly auto loan payment will be or how much you can afford to spend.

The Auto Loan Payment Calculator provides a monthly payment based on a price, trade-in and down payment information you provide; you can change the loan term and interest rate to see how they change your payment and total interest.

The Reverse Auto Loan Calculator gives you a vehicle price range based on a payment amount you provide.

Which car loan calculator to use?

Use the auto loan repayment calculator if you know what you plan to spend.

For example, you may think you can afford a $20,000 loan on 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 might be 11%, which would make payments of around $515 – and you’d pay over $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 this $20,000 11% loan go from $515 to $435. However, you would pay nearly $6,100 in interest, or an additional $1,600, to do so.

Use the Reverse Auto Loan Calculator if you have a specific monthly payment in mind. Let’s say you’ve decided you can afford to spend $350 a month on a car. Depending on the interest rate and loan term you choose, a $350 car payment could pay off a $15,600 car loan at 3.66% in 48 months or a $19,100 car loan in 60 months.

How to use the auto loan repayment calculator

Here’s a guide to the information you’ll need to enter into the auto loan repayment calculator.

Car price: In this field, enter the price you expect to pay for the car. To estimate the price of new cars, you can start with the vehicle’s list price (also called MSRP). Subtract any savings from dealer negotiations or manufacturer rebates. Then add the cost of options and the “destination fee” charged on new cars.

For used cars, estimating the sale 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 price 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 see average car loan rates. You can also check lenders online for rates. If you are pre-qualified or pre-approved for a loan, simply enter the rate offered to you.

Return and deposit: Enter the total amount of money you are investing in the new car or the trade-in value of your existing vehicle, if applicable. You can use online sites for ratings 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 dealer sells the car). You can also get cash buy offers from your local CarMax or online from services like Vroom or Carvana for reference.

Number of months : Enter the term of the loan (how long you have to repay the loan). Car loans are 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.

Auto Loan Calculator Reveals More Than Payments

In addition to looking at the outcome of the monthly car payment, be sure to consider the total amount you will spend 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 on top of the “total cost of car” result from the auto loan repayment calculator, 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 dealer and ask for estimates of these costs in your area.

An 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 dealerships and ultimately choose the best auto loan for your financial situation.

NerdWallet recommends that you shop around for an auto loan before heading to dealerships; you’ll give the dealership a rate to beat and you won’t have to worry about not being approved for a loan.

How to Use the Reverse Auto Loan Calculator

If you know what you can afford each month, a reverse auto loan calculator can tell you how that translates to the total amount you can borrow. Of course, there are variables: the term of the loan and the interest rate you get.

Below, you can see how your loan amount changes by moving the sliders for payment and loan term. We have provided average rates by credit level as determined by Experian Automotive.