Auto Loan Payment Calculator
Calculate monthly payments for auto loans on new and used vehicles. Compare different loan terms and down payments to find the best option for your budget while minimizing total interest paid.
Understanding Auto Loans
Auto loans are secured loans where the vehicle serves as collateral. This security typically results in lower interest rates compared to unsecured personal loans. However, rates vary significantly based on credit score, loan term, whether the car is new or used, and current market conditions.
The key decisions when financing a vehicle are: how much to put down, what loan term to choose, and whether to finance through a dealer, bank, or credit union. Each choice affects both your monthly payment and total cost of ownership.
Current Auto Loan Rates by Credit Score
| Credit Score | New Car APR | Used Car APR | Typical Approval |
|---|---|---|---|
| 750+ (Excellent) | 5.0% | 6.5% | Best terms |
| 700-749 (Good) | 6.5% | 8.0% | Good terms |
| 650-699 (Fair) | 9.0% | 11.0% | Standard |
| 600-649 (Poor) | 12.0% | 15.0% | Subprime |
| Below 600 | 15%+ | 18%+ | High-risk |
Monthly Payment Examples
| Vehicle Price | Down Payment | APR | Term | Payment | Total Interest |
|---|---|---|---|---|---|
| $25,000 | $5,000 | 5% | 48 mo | $461 | $2,128 |
| $30,000 | $5,000 | 6% | 60 mo | $484 | $4,020 |
| $35,000 | $7,000 | 7% | 60 mo | $554 | $5,240 |
| $40,000 | $8,000 | 5% | 72 mo | $512 | $4,864 |
| $45,000 | $10,000 | 6% | 72 mo | $578 | $6,616 |
Loan Term Comparison
For a $30,000 vehicle with $5,000 down at 6% APR:
| Term | Monthly Payment | Total Interest | Total Cost |
|---|---|---|---|
| 36 months | $761 | $2,396 | $27,396 |
| 48 months | $587 | $3,176 | $28,176 |
| 60 months | $484 | $4,020 | $29,020 |
| 72 months | $415 | $4,880 | $29,880 |
| 84 months | $366 | $5,744 | $30,744 |
The 20/4/10 Rule
A widely recommended guideline for car affordability: 20% down payment, 4-year (48-month) maximum loan term, and 10% of gross monthly income for total vehicle expenses (payment, insurance, fuel, maintenance).
Implementation
``javascript
function calculateAutoLoan(vehiclePrice, downPayment, tradeIn, apr, months) {
const loanAmount = vehiclePrice - downPayment - tradeIn;
const monthlyRate = apr / 100 / 12;
const payment = loanAmount *
(monthlyRate * Math.pow(1 + monthlyRate, months)) /
(Math.pow(1 + monthlyRate, months) - 1);
const totalPaid = payment * months;
const totalInterest = totalPaid - loanAmount;
return { loanAmount, payment, totalPaid, totalInterest };
}
``
Avoiding Negative Equity
Cars depreciate rapidly, often losing 20% of value in the first year. Long loan terms (72-84 months) with minimal down payment can result in owing more than the car is worth (being "upside-down" or "underwater"). Protect yourself with larger down payments, shorter terms, and avoiding rolling previous loan balances into new loans.