How This Auto Loan Calculator Works

Enter the purchase price, monthly payment, down payment, term and interest rate to see how different loan terms or down payments can impact your monthly payment and what it will take to pay off your car loan.

Explanation of Terms

Purchase Price: It is recommended that the monthly auto loan payment alone is limited to about 10% to 15% of your after-tax take-home pay. A lower purchase price will make it easier to achieve affordable monthly payments but there are many good reasons to spend more on a car that will last longer or provide what your household needs.

Down Payment: A higher down payment will allow for lower interest rates as well as reduced monthly payments and a shorter term length. Raising this amount by saving before the purchase can largely affect the overall cost of a car, making more options affordable for a household.

Loan Terms: A loan term is the amount of time you will be paying your monthly auto loan payments — how long your car loan payoff will take. Longer term loans allow for a smaller monthly payment but add up to larger amounts of interest paid on a car in total.

Interest Rate: A car loan’s interest rate will depend on a few factors including credit score, term length, down payment, and lender. The lowest interest rates will be available for buyers with high credit scores, large down payments, short term lengths, and who take out loans with credit unions like Navy Federal rather than a bank or other alternative lender.