Auto Loan Calculator

Your monthly payment depends on three factors: the loan amount, the interest rate, and the loan term. The calculator uses a standard amortization formula that divides your total loan cost into equal monthly payments. A longer term lowers your monthly payment but increases the total interest you pay over the life of the loan.

Most auto loans range from 24 to 84 months. A shorter term means higher monthly payments but less total interest paid. A longer term reduces your monthly payment but costs more over time. As a general rule, try to keep your loan term no longer than the useful life of the vehicle. For new cars, 48 to 60 months is a common balance point.

A trade-in reduces the amount you need to borrow. If you owe money on your trade-in, that balance gets added back to your loan amount. Use the "Determine loan amount" section in the calculator above to factor in your trade-in value, any amount owed, your down payment, and any cash rebates to arrive at your actual loan amount.

A down payment of 10% to 20% of the vehicle price is a common recommendation. A larger down payment reduces your loan amount, lowers your monthly payment, and reduces the risk of being upside down on your loan. If you have a trade-in, it can serve the same function as a cash down payment. 

Financing through a bank gives you a pre-approved rate before you walk into the dealership, which puts you in a stronger negotiating position. Dealer financing can be convenient, but dealers sometimes mark up the rate above what the lender actually offered. Getting pre-approved with FSB first means you know your rate, your payment, and your budget before you start shopping.

Read: Bank vs. Dealership Financing