Estimate your monthly auto loan liability, total interest costs, and the true cost of ownership for your next vehicle.
Loan Parameters
Loan Breakdown
Monthly Payment$387
Total Interest$3,199
Total Out-of-Pocket$28,199
Value Distribution
Loan Principal
Total Interest
Total out-of-pocket includes your down payment and trade-in value plus all future principal and interest payments.
About this calculator
Overview
A car loan is a simplified amortization instrument. Unlike a mortgage, auto loans are usually calculated with daily simple interest, meaning interest is calculated based on the balance on the day the payment is received. The three main levers of a car loan are the principal amount (price minus down payment/trade-in), the interest rate (APR), and the term length in months.
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Pro Tips
What is the 'Rule of 78s'?: Some car loans use the 'Rule of 78s,' a method of precalculating interest that front-loads it even more than standard amortization. Most modern auto loans use simple interest instead.
How does loan term affect cost?: A longer loan term (72+ months) lowers your monthly payment but significantly increases the total interest you pay over the life of the loan.
Is APR different from Interest Rate?: Yes. The interest rate is the cost of borrowing the principal. APR includes the interest rate plus any loan fees or other costs charged by the lender.
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Fun Facts
"Cars typically depreciate about 10% the moment they are driven off the lot."
"The average monthly car payment in the US has surpassed $700 for new vehicles in recent years."
"A higher down payment not only lowers your monthly liability but can also help you qualify for lower APR brackets."
