CalculateItToday

Auto Loan Calculator

Calculate monthly payments, total interest, and loan terms for your car purchase. Compare different loan options and down payment scenarios.

Loan Details

20%
$20,000
%
months
5 years
%

Loan Summary

$382.02
Monthly Payment
$2,921.20
Total Interest
$22,921.20
Total Cost
5.5%
APR
80%
Loan-to-Value

Payment Breakdown

Principal & Interest: $382.02
Sales Tax: $0.00
Insurance (est.): $100.00
Total Monthly: $482.02

Amortization Preview

Year 1: $16,000
Year 2: $12,000
Year 3: $8,000
Year 4: $4,000
Year 5: $0

Loan Tips

  • • Aim for 20% down payment to avoid negative equity
  • • Keep loan term under 60 months when possible
  • • Shop around for the best interest rates
  • • Consider total cost, not just monthly payment

About Auto Loans

An auto loan is a type of secured loan used to purchase a vehicle. The car serves as collateral, meaning the lender can repossess it if you default on payments. Understanding your loan terms and total cost is crucial for making informed decisions.

Key Loan Terms:

Principal

The amount you borrow to purchase the vehicle

Interest Rate

The cost of borrowing money, expressed as a percentage

APR

Annual Percentage Rate - includes interest and fees

Loan Term

The length of time you have to repay the loan

Factors Affecting Your Loan:

• Credit Score: Higher scores typically get lower interest rates

• Down Payment: Larger down payments reduce loan amount and monthly payments

• Loan Term: Longer terms mean lower monthly payments but more total interest

• Vehicle Type: New cars often have better rates than used cars