Use our free car loan calculator to estimate your monthly payments. See how the vehicle price, loan term, down payment, and interest rate impact how much you need to pay each month.
Purchasing a car is a major financial decision. Our car loan calculator can help you determine the right budget for you.
This car loan calculator will provide you with an estimate of your monthly loan payments. Start by entering amount of money you want to borrow, the loan term and interest rate on the loan. Here’s what the inputs means:
The amount of money that you need to borrow is the vehicle price, adjusted for sales tax, less any down payment and trade-in value.
The more money you put down and the higher the trade-in value on your existing vehicle, the lower your loan amount will be. A smaller loan amount reduces your monthly payment.
The average loan amount for a new vehicle is around $32,000 and about $20,500 for a used vehicle.
Car loan terms are usually spoken about in terms of months — 36 months, 48 months, 60 months, etc. These correspond to 3, 4, and 5 years. Most auto loans are for 4 to 6 years or 48 to 72 months.
The average loan new for new cars is around 70 months (or 5.8 years) and around 36 months (or years 3 years) for used and leased vehicles.
With longer loan terms, you will pay less each month, but more overall as your interest payments will be greater. Shorter loan terms have bigger monthly payments, but your overall loan costs will be reduced because you will pay less in interest over the life of the loan.
The average annual interest rate for new car loans is around 5.45%, according to the U.S. Federal Reserve. Your interest rate will vary based on the lender and your credit score.