Auto Loan Calculator
Calculate car loan payments, total costs, depreciation, and view detailed cost breakdown with sales tax
Your Monthly Payment
Cost Breakdown
Estimated Depreciation Schedule
| Year | Estimated Value | Depreciation | % Lost |
|---|---|---|---|
| Year 1 | $28,000 | -$7,000 | 20.0% |
| Year 2 | $23,800 | -$4,200 | 12.0% |
| Year 3 | $20,230 | -$3,570 | 10.2% |
| Year 4 | $17,196 | -$3,035 | 8.7% |
| Year 5 | $14,616 | -$2,579 | 7.4% |
* Depreciation estimates based on typical new vehicle depreciation rates: 20% first year, 15% years 2-5, 10% thereafter.
About This Tool
An auto loan calculator helps you estimate monthly car payments, understand the total cost of financing a vehicle, and plan your budget accordingly. Whether you're buying a new or used car, understanding your auto loan is crucial for making informed financial decisions.
Understanding Auto Loan Components
Auto loans involve several key components: the vehicle price, down payment, trade-in value, sales tax, interest rate, and loan term. The down payment reduces the amount you need to finance, while a trade-in can further lower your loan amount. Sales tax is typically financed along with the vehicle price, increasing your total loan amount.
The Impact of Interest Rates
Your credit score significantly affects the interest rate you'll receive on an auto loan. Borrowers with excellent credit (750+) may qualify for rates as low as 3-4%, while those with fair credit might face rates of 8-12% or higher. Even a 1% difference in interest rate can cost thousands over a 5-year loan term. Shopping around and comparing offers from multiple lenders can help you secure the best rate.
Vehicle Depreciation Considerations
New cars typically depreciate 20% in the first year and 15% annually for years 2-5. This means a $35,000 car might only be worth $28,000 after one year. Understanding depreciation is important because you could owe more than your car is worth (being "upside down" on your loan) if you don't make a substantial down payment or choose a long loan term. Consider putting down at least 20% and keeping loan terms to 60 months or less to avoid this situation.
Tips for Getting the Best Auto Loan
Get pre-approved before shopping to know your budget and negotiate better. Make a larger down payment (20% or more) to reduce your loan amount and potentially qualify for better rates. Choose the shortest loan term you can afford - while 72 or 84-month loans offer lower monthly payments, you'll pay significantly more interest. Consider the total cost of ownership including insurance, maintenance, fuel, and depreciation when budgeting for a vehicle purchase.