See how much buying a new set of wheels will cost you with our easy auto loan calculator! Whether you're looking to buy a new car, refinance your existing vehicle, or buy out a lease, this calculator will help you make the right decision. All you'll need is some necessary information, and you'll see the monthly payment, how much you'll spend in interest, and the total cost of your car, including all taxes and fees. Before you sign on the dotted line at a dealership, try different loan terms, rates, and down payments on our calculator to see what will work best for your finances!



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FAQ Expand All

How to get a car loan?

Getting a car loan starts with an application to a bank or credit union. Typically, you'll need to provide them with some necessary information, such as the car's make and model you're considering purchasing and the loan amount you'll need. Some financial institutions will let you borrow more than the car's value so that you'll have some money to pay for taxes, title, and registration. Your lender will pull your credit report and determine whether or not they can fund your request.
You can also get a car loan from a dealership as most places have lenders that they use (or the manufacturer has a credit institution like Ford does with Ford Credit). However, loans from the dealerships may not match what you can get with your bank. Fortunately, our auto loan calculator will help you determine which one is better!

How to refinance a car loan?

Refinancing a car loan involves paying off the old loan and starting a new one. As such, the process begins with an application to the bank. You'll need to provide some necessary information like the amount of your existing loan, the make, model, and year of your car, and your monthly income. The bank will pull your credit report to determine if you qualify and what your interest rate will be.
It's worth noting that typically, banks will only refinance car loans up to the amount that the car is worth. So, if you have a car worth $5,000 but owe $10,000 on it, you won't be able to refinance. Some banks will permit it, but it's often much more challenging than when you have a car worth more than the loan itself.

How to get out of a car loan?

There are three ways to get out of a car loan: you can either pay it off, sell your car, or have someone else assume your monthly payments. The first option is self-explanatory. If you have enough to bring the loan balance to zero, you can wipe it out and get the title to your vehicle. However, if you don't have enough to bring the dollar amount to zero, you can sell your car. Assuming that you make enough to pay off the loan, you can sell it and pay it off or trade it in and have the dealer wipe out the balance. Finally, depending on your loan's structure and terms, you might be able to "sell" your car by letting someone else assume your monthly payments rather than paying you for the vehicle outright.

What is a good APR for a car loan?

A "good" APR for a car loan depends primarily on your credit score. For people with good credit, the average APR was 4.96% for a new car purchase and 6.36% for a used car. However, it's not uncommon for people with bad credit to see double-digit APRs. It is worth noting that, unlike other assets like houses, cars depreciate. Therefore, the less you can spend on interest, the better it will be for your pocketbook in the long run. Fortunately, with our auto loan calculator, you can see how much your monthly payment will be, how much interest you'll pay, and how much your loan will cost!

How to get a car loan with bad credit?

Since cars depreciate, banks tend to be a little hesitant with giving car loans to people with bad credit. However, that doesn't mean that it's impossible. The key to getting a car loan with bad credit is to have a substantial down payment. Since cars depreciate so rapidly, a bank will find it much easier to finance an auto loan if you're coming with 20-30% down than if you want 100% of the car's purchase price. Since cars frequently lose a large part of their value the moment you drive them off the lot, having that down payment will help offset the bank's risk. If you have bad credit, the dealership might be the best person to help you since they often work with multiple banks and have experience getting loans for people of all walks of life.

How to pay off a car loan faster?

There are three ways to pay a car loan faster. The first way is to add a little bit to your monthly payment. Even if you can add an extra $10 or $20 each month, that money helps shorten the amount of time you'll have the loan. The second way is to make payments more frequently. If you have an auto loan of $300 a month and receive biweekly checks, consider paying $150 with each check. By sending in the month faster, you'll allow for less interest to accrue, which could shorten the life of your loan. Finally, you can sometimes pay your loan quicker through a refinance. If you can find more favorable interest terms, you can often pay the loan faster!

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Vehicle Price

Enter the total price that you're expecting to pay for the vehicle. Exclude sales tax, but do include warranties and other extras you might buy. If you don't have a specific vehicle in mind, enter a ballpark amount. Always err on the side of caution when estimating a purchase price. You're better to assume you'll pay more and be pleasantly surprised than count on spending less and be scrambling at the last minute!

Down Payment

In this field on the auto loan calculator, enter your down payment. This field represents the amount of money you'll put towards the car upfront. Having a substantial down payment will increase your chances of being approved for a loan. Additionally, it will reduce the amount of interest you'll pay over its duration.

Interest Rate

Enter the rate that you'll pay for your auto loan. If you haven't applied for a loan, you can typically estimate these rates by looking at your financial institution's website. You'll see offers for "as low as" rates. These are for people with excellent credit. If you have a fantastic credit score, you can use that. Otherwise, add an appropriate buffer so you'll get a more realistic picture of what your monthly payment will be.

Loan Term

For this field of the auto loan calculator, enter the term of your loan. Most car loans are for 60 months or five years. However, shorter and longer loans exist. With shorter loans, you'll frequently have lower interest rates, and you'll pay less in interest overall. However, your monthly payments will be higher. You'll have smaller monthly payments with longer loans, but you'll pay more in interest charges. You may wish to play around with loan terms to find the one that will work for your finances!

Trade-In Value

If applicable, enter the amount you believe you'll get as a trade-in for your existing car. Be realistic. If you don't know how much your vehicle is worth, you may wish to look it up on Kelley Blue Book. You'll need to answer a few questions, and you'll receive an estimated trade-in value! If you're considering selling your car privately, keeping your vehicle, or don't have an existing vehicle, enter $0 here. Usually, privately selling your current vehicle will get you the most money.

Sales Tax

All cars are typically subject to a sales tax (unless you live in a state with no sales tax). Enter the amount that you'll expect to pay in this field. Many auto loans will let you finance the vehicle's full cost plus the sales tax, so even if you can't afford to put anything down, you'll still be able to finance 100% of the total purchase price of your car!

This auto loan calculator should only be used to estimate your repayments since it doesn't include taxes or insurance.