Moneko
Moneko

Auto Loan Calculator

Calculate your monthly car loan payments and compare financing options to find the best deal for your budget.

Auto Loan Calculator

months
%
%

Loan Summary

Monthly Payment:$471.78
Total Loan Amount:$25,000
Sale Tax:$2,100
Upfront Payment:$9,100
Total of 60 Payments:$28,306.85
Total Loan Interest:$3,306.85
Total Cost (price, interest, tax, fees):$37,406.85

Loan Breakdown

Loan Breakdown

Loan Progress Over Time

Auto Loan Key Takeaways

  • Shop for auto loans before visiting the dealership to get better negotiating power
  • Credit scores above 720 typically qualify for the best interest rates and terms
  • Shorter loan terms mean higher monthly payments but significantly less total interest paid
  • Consider certified pre-owned vehicles for better value and remaining manufacturer warranties
  • Factor in insurance, maintenance, and registration costs beyond just the loan payment
  • Avoid negative equity by making a reasonable down payment and choosing appropriate loan terms

Auto Loan Quick Facts

Average Auto Loan Rate:6-12%

Interest rates for new cars in 2024, varying by credit score and term length

Recommended Down Payment:10-20%

Ideal down payment to avoid negative equity and reduce monthly payments

Total Car Ownership Cost:$0.56 per mile

AAA's estimate including depreciation, insurance, maintenance, and fuel

Credit Score Impact:2-4% rate difference

Interest rate difference between excellent (740+) and fair (580-669) credit

Auto Loan Planning at a Glance

Best Loan Terms:36-60 months for new cars, 24-48 months for used cars to minimize interest
Down Payment Strategy:20% for new cars, 10% minimum for used cars to avoid immediate negative equity
Shopping Timeline:Get pre-approved within 14 days to minimize credit score impact from multiple inquiries
Total Budget Rule:Keep total vehicle expenses (payment, insurance, gas, maintenance) under 15-20% of income
Best Financing Sources:Credit unions often offer lowest rates, followed by banks, then dealership financing

Smart Auto Loan Strategies

beginner Level
  • 1
    Get pre-approved before car shopping to know your budget and negotiate better
  • 2
    Research car values using KBB or Edmunds to avoid overpaying for the vehicle
  • 3
    Consider certified pre-owned vehicles for better value and remaining warranties
  • 4
    Negotiate the car price separately from financing to get the best overall deal
  • 5
    Read the fine print for additional fees, extended warranties, or add-on products
  • 6
    Make extra payments toward principal to pay off the loan faster and save interest

Current Auto Loan Rates (September 2025)

Auto Loan Rates by Credit Score (September 2025)
Average auto loan rates varying significantly by credit score and vehicle type
Loan CategoryAvg RateCredit Range
New cars (excellent credit)5.25%781-850
New cars (good credit)6.73%661-780
New cars (fair credit)9.89%601-660
Used cars (excellent credit)7.89%781-850
Used cars (average)11.87%All credit types
Used cars (poor credit)21.32%300-500

Last updated: 2025-09-05 | Source: Experian, U.S. News

Key Economic Indicators (September 2025)
Current economic data providing context for financial planning decisions
Economic MetricCurrentContext
Federal funds rate4.25-4.50%Expected cut Sept 2025
Inflation (CPI)2.7%June 2025 year-over-year
Unemployment rate4.3%August 2025
GDP growth2.8%Q2 2025 annualized

Last updated: 2025-09-05 | Source: Federal Reserve, Bureau of Labor Statistics, Bureau of Economic Analysis

Understanding Auto Loan Calculations

Make informed vehicle financing decisions with our comprehensive auto loan calculator guide

How Do Auto Loans Work?

Auto loans help you finance the purchase of a vehicle by spreading payments over time. The loan amount, interest rate, and term length determine your monthly payment. When you take out an auto loan, the vehicle serves as collateral, meaning the lender can repossess it if you fail to make payments. Understanding how different factors affect your loan can help you secure better terms and save money over time.

Key Auto Loan Terms

  • Principal:The initial amount borrowed to purchase the vehicle.
  • Interest Rate:The percentage charged by the lender for borrowing the money, expressed as an annual percentage rate (APR).
  • Loan Term:The length of time you have to repay the loan, typically 36, 48, 60, or 72 months.
  • Down Payment:The upfront amount you pay toward the vehicle's purchase price, reducing the amount you need to borrow.
  • Trade-in Value:The value of your current vehicle that can be applied toward the purchase of your new vehicle.

Benefits of Using Our Calculator

  • Accuracy:Get precise payment estimates based on current market rates and your specific loan details.
  • Transparency:See exactly how taxes, fees, and trade-ins affect your total loan amount and monthly payments.
  • Comparison:Compare different loan terms, interest rates, and down payment amounts to find your optimal auto loan.
  • Affordability:Determine what vehicle price range fits your budget based on your desired monthly payment.
  • Negotiation:Enter the dealership with confidence knowing exactly what terms you can afford.

Smart Auto Loan Tips

Get Pre-approved

Secure financing before visiting dealerships to strengthen your negotiating position and avoid high-pressure sales tactics.

Consider Total Cost

Look beyond the monthly payment to understand the total cost over the life of the loan, including interest, taxes, and fees.

Shorter Terms Save Money

While longer loan terms reduce monthly payments, they increase the total interest paid. Choose the shortest term you can comfortably afford.

Negotiate the Price, Not the Payment

Focus on negotiating the vehicle price rather than monthly payments. Dealers can manipulate payment amounts by extending the loan term.

Frequently Asked Questions

Your credit score significantly impacts your interest rate and loan approval. Higher scores typically qualify for lower rates, potentially saving you thousands over the life of the loan.

Ready to explore other calculators?

Try Our Calculators