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How to Use Our Auto Loan Calculator

3 min read

How to Use Our Auto Loan Calculator

Smart car buyers negotiate the total price, not the monthly payment. Our Auto Loan Calculator helps you understand the full cost of financing before you visit the dealership.

What to Enter

  • Loan Amount -- The amount you need to finance (vehicle price minus down payment and trade-in).
  • Interest Rate -- Your expected APR. Check your credit score beforehand -- rates can range from 4% (excellent credit) to 15%+ (poor credit).
  • Loan Term -- The repayment period in months. Common terms: 36, 48, 60, or 72 months.

What the Results Show

Monthly Payment -- Your fixed monthly car payment.

Total Interest -- How much you will pay in interest over the life of the loan. On a $25,000 loan at 7% for 60 months, you will pay approximately $4,700 in interest.

Total Cost -- The loan amount plus all interest charges.

Comparing Loan Terms

| Loan: $25,000 at 7% | 36 months | 48 months | 60 months | 72 months | |---------------------|-----------|-----------|-----------|-----------| | Monthly Payment | $772 | $599 | $495 | $426 | | Total Interest | $2,782 | $3,728 | $4,700 | $5,698 |

The monthly payment drops as you extend the term, but you pay significantly more in interest. A 72-month loan costs nearly twice the interest of a 36-month loan.

Smart Financing Tips

Get pre-approved before visiting the dealer. This gives you negotiating leverage.

Focus on the total price, not the monthly payment. Dealers love to stretch terms to make any price look affordable.

Aim for 48-60 months maximum. Longer terms mean you will likely owe more than the car is worth for a significant portion of the loan.

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