A car loan calculator is a financial tool that helps you estimate your monthly payment before applying for an auto loan. By entering your loan amount, interest rate (APR), and loan term, you can understand how much your monthly obligation will be and how much total interest you will pay.
Auto loans use an amortization formula. This means your monthly payment stays fixed, but the portion that goes to interest decreases over time while the principal portion increases.
Improving your credit score before applying, comparing multiple lenders, and making a larger down payment can significantly reduce your monthly payment and total interest cost.
Is this calculator accurate?
This tool provides estimates only. Actual loan offers depend on lender approval and additional fees.
Does APR include taxes?
APR may include lender costs but vehicle taxes and registration fees vary by state.