Car Loan Calculator
Calculate your monthly car loan payment, total interest, and see a complete amortization schedule. Includes options for down payment and trade-in value.
Car Loan Details
Amount you'll pay upfront
Value of your current vehicle
Payment Summary
$471.78
$25,000.00
Car price minus down payment and trade-in
$28,306.85
Including principal and interest
$3,306.85
60
Payment Breakdown
First Year Payment Breakdown
- Interest
- Principal
Remaining Balance Over Time
Amortization Schedule
| Payment # | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | $471.78 | $367.61 | $104.17 | $24,632.39 |
| 2 | $471.78 | $369.15 | $102.63 | $24,263.24 |
| 3 | $471.78 | $370.68 | $101.10 | $23,892.56 |
| 4 | $471.78 | $372.23 | $99.55 | $23,520.33 |
| 5 | $471.78 | $373.78 | $98.00 | $23,146.55 |
| 6 | $471.78 | $375.34 | $96.44 | $22,771.21 |
| 7 | $471.78 | $376.90 | $94.88 | $22,394.31 |
| 8 | $471.78 | $378.47 | $93.31 | $22,015.84 |
| 9 | $471.78 | $380.05 | $91.73 | $21,635.79 |
| 10 | $471.78 | $381.63 | $90.15 | $21,254.16 |
| 11 | $471.78 | $383.22 | $88.56 | $20,870.94 |
| 12 | $471.78 | $384.82 | $86.96 | $20,486.12 |
| 13 | $471.78 | $386.42 | $85.36 | $20,099.70 |
| 14 | $471.78 | $388.03 | $83.75 | $19,711.66 |
| 15 | $471.78 | $389.65 | $82.13 | $19,322.02 |
| 16 | $471.78 | $391.27 | $80.51 | $18,930.74 |
| 17 | $471.78 | $392.90 | $78.88 | $18,537.84 |
| 18 | $471.78 | $394.54 | $77.24 | $18,143.30 |
| 19 | $471.78 | $396.18 | $75.60 | $17,747.12 |
| 20 | $471.78 | $397.83 | $73.95 | $17,349.28 |
| 21 | $471.78 | $399.49 | $72.29 | $16,949.79 |
| 22 | $471.78 | $401.16 | $70.62 | $16,548.63 |
| 23 | $471.78 | $402.83 | $68.95 | $16,145.81 |
| 24 | $471.78 | $404.51 | $67.27 | $15,741.30 |
| 25 | $471.78 | $406.19 | $65.59 | $15,335.11 |
| 26 | $471.78 | $407.88 | $63.90 | $14,927.22 |
| 27 | $471.78 | $409.58 | $62.20 | $14,517.64 |
| 28 | $471.78 | $411.29 | $60.49 | $14,106.35 |
| 29 | $471.78 | $413.00 | $58.78 | $13,693.34 |
| 30 | $471.78 | $414.73 | $57.06 | $13,278.62 |
| 31 | $471.78 | $416.45 | $55.33 | $12,862.16 |
| 32 | $471.78 | $418.19 | $53.59 | $12,443.98 |
| 33 | $471.78 | $419.93 | $51.85 | $12,024.04 |
| 34 | $471.78 | $421.68 | $50.10 | $11,602.36 |
| 35 | $471.78 | $423.44 | $48.34 | $11,178.93 |
| 36 | $471.78 | $425.20 | $46.58 | $10,753.72 |
| 37 | $471.78 | $426.97 | $44.81 | $10,326.75 |
| 38 | $471.78 | $428.75 | $43.03 | $9,898.00 |
| 39 | $471.78 | $430.54 | $41.24 | $9,467.46 |
| 40 | $471.78 | $432.33 | $39.45 | $9,035.13 |
| 41 | $471.78 | $434.13 | $37.65 | $8,600.99 |
| 42 | $471.78 | $435.94 | $35.84 | $8,165.05 |
| 43 | $471.78 | $437.76 | $34.02 | $7,727.29 |
| 44 | $471.78 | $439.58 | $32.20 | $7,287.70 |
| 45 | $471.78 | $441.42 | $30.37 | $6,846.29 |
| 46 | $471.78 | $443.25 | $28.53 | $6,403.03 |
| 47 | $471.78 | $445.10 | $26.68 | $5,957.93 |
| 48 | $471.78 | $446.96 | $24.82 | $5,510.98 |
| 49 | $471.78 | $448.82 | $22.96 | $5,062.16 |
| 50 | $471.78 | $450.69 | $21.09 | $4,611.47 |
| Showing first 50 payments of 60 total payments | ||||
Buying a car is likely to be a major purchase out of a person's whole life and knowing your car loan is an absolute must if you are to make wise financial decisions. A car loan calculator makes it clear to you exactly how much you will have to pay every month, the total interest that you will pay throughout the duration of the loan, and the impact of various loan terms on your payments.
No matter if the car is new or pre-owned and the finance is done via a dealership or your bank, this calculator will help you with the information to negotiate better terms and select the loan that suits your budget. You may consider your down payment, trade-in value, and check how various interest rates and loan terms affect your monthly payment and total cost.
The calculator additionally provides a full amortization schedule whereby you can view how each payment is divided between principal and interest. This helps you grasp the concept of your loan balance getting smaller over time and also revealing how much you are paying for the borrowing of money.
How Car Loans Work
A car loan is an installment loan in which you take a certain amount of money to buy a car and return it in fixed monthly installments over a determined time, usually 3 to 7 years. Every payment comprises both principal (the portion of the money you borrowed) and interest (the charge for the use of money).
The loan amount refers to the price of the car after subtracting your down payment and any trade-in value. For instance, if your car is $30,000, you give $5,000 as a down payment, and you have a trade-in car worth $3,000, then your loan amount will be $22,000. You will pay interest on this amount.
Car loan interest rates are dependent on factors such as your credit score, the duration of the loan, if the car is new or used, and market rates at the time. Basically, loans that are paid off in a shorter period have lesser interest rates, and people who have good credit scores are given better rates.
Factors That Affect Your Car Loan Payment
- 1.Car Price: The higher the purchase price, the higher your loan amount and monthly payment. Negotiating a better price can significantly reduce your payments.
- 2.Down Payment: A larger down payment reduces your loan amount, which lowers both your monthly payment and total interest. Aim for at least 20% down if possible.
- 3.Trade-In Value: Your current vehicle's trade-in value acts like additional down payment, reducing the amount you need to finance.
- 4.Interest Rate: Even small differences in interest rates can add up to thousands of dollars over the life of the loan. Shop around and improve your credit score to get the best rate.
- 5.Loan Term: Longer terms mean lower monthly payments but more total interest paid. Shorter terms save money overall but require higher monthly payments.
New vs Used Car Loans
There are important differences between financing new and used cars:
- Interest Rates: New car loans typically have lower interest rates than used car loans because new cars are considered less risky by lenders.
- Loan Terms: New cars can often be financed for longer terms (up to 7 years), while used cars usually have shorter maximum terms (often 5 years or less).
- Down Payment Requirements: Used cars may require larger down payments, especially if they're older or have higher mileage.
- Depreciation: New cars depreciate quickly in the first few years, which can leave you "upside down" (owing more than the car is worth) if you need to sell early.
Tips for Getting the Best Car Loan
Before you head to the dealership, use this calculator to understand what you can afford:
- Check your credit score and work on improving it if needed - better credit means better rates
- Get pre-approved from your bank or credit union before shopping - this gives you negotiating power
- Compare rates from multiple lenders, not just the dealership's financing
- Negotiate the car price first, then discuss financing - don't let them combine the two
- Consider making a larger down payment to reduce your loan amount and monthly payment
- Choose the shortest loan term you can afford - you'll pay less interest overall
- Read all loan documents carefully before signing, especially the interest rate and any fees
FAQs
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