Using an Auto Loan Calculator

An online car loan payment calculator can be useful in the following ways:

1. Find affordable car prices
If you know about how much you can afford for a car in terms of a monthly loan payment amount, you can easily use our auto loan calculator to "work backward" to find the car price that matches that payment amount. Start by entering your best guess as a vehicle price. Enter assumed values for interest rate and tax rate. Then calculate the monthly payment. If the payment is higher than you want, simply step backward in the calculator and adjust the vehicle price downward and recalculate. You may have to go through this process a number of times to get the car loan payment you want.

2. Learn how interest rate and loan term affect monthly payments
An auto loan calculator is a great learning tool. By entering an example vehicle price, say $25,000, you can enter various values for interest rate and loan term to see how the changes affect monthly payment amount. Also play around with the vehicle price at a specific interest rate and loan term to see how price changes affect monthly payment. You can also see how different down payment amounts can affect monthly payment.

3. Find total finance cost
Use an auto loan calculator to determine just how much automobile financing will cost you. What's the difference between financing and paying cash for your vehicle? How much can you save by making a large down payment? How much can you save by reducing the length (term) of your loan? How much will a 0% loan (if you can get one) save you?

4. Evaluate the difference between accepting a rebate versus a low-interest loan deal
Car manufacturers frequently offer "either-or" incentives that are difficult to evaluate without a tool such as our online auto loan calculator. For example, you may be offered either a $2000 rebate or a 1.5% loan. Which is better? Use the calculator to evaluate each case and compare the results.

5. Want to refinance your auto loan? Will it save you money?
If you are considering refinancing as a way to lower your monthly car payment, use an auto loan calculator to find out how much. Just insert your current loan balance as the loan amount, set an interest rate and loan term, and get your answer. Refinancing a car loan can lower your monthly payment if you can reduce your interest rate and extend the length of the loan.