Auto Loan Calculator
Calculate your monthly car payment with trade-in, taxes, and fees. Get smart buying recommendations with our 20/4/10 rule analysis.
Auto Loan Calculator
Calculate monthly payments and total cost
Vehicle Details
20.0% down
Loan Terms
⚠️ Loans over 48 months cost significantly more in interest
Affordability Check
Used to calculate the 20/4/10 Rule for smart car buying
Extra Payments
Monthly Payment
Estimated Monthly Payment
20/4/10 Rule Check
Smart car buying guidelines
Cost Breakdown
Loan Term Comparison
See how different loan terms affect your monthly payment and total interest
Total Cost Breakdown
Loan Balance Over Time
Amortization Schedule
📚 Learn More About Auto Loans
🚗 Auto Loan Basics
Auto loans are secured by the vehicle, meaning the lender can repossess if you don't pay. New cars typically get lower rates (4-7%) than used cars (6-10%).
Example: $30,000 car at 6% for 60 months = $580/month payment, $4,800 total interest paid.
💵 Down Payment Strategy (20/4/10 Rule)
- 20% Down: Avoid being underwater (owing more than car's worth)
- 4 Years Max: Shorter term = less interest, car still under warranty
- 10% of Income: Payment + insurance shouldn't exceed 10% of gross monthly income
📊 Loan Term Impact
Longer terms = lower monthly payment but much more interest. On a $25,000 loan at 6%:
- 36 months: $761/mo, $2,400 interest
- 60 months: $483/mo, $4,000 interest
- 72 months: $414/mo, $4,800 interest
💰 Trade-In vs Private Sale
Convenient, reduces sales tax, but typically $1,000-3,000 less than private sale.
More money, but more work. Must handle title transfer, buyers, and timing.
⚠️ Common Mistakes
- Focusing only on monthly payment (dealers extend terms)
- Not getting pre-approved (lose negotiating power)
- Financing for 72+ months (underwater, high interest)
- Skipping down payment (higher rates, negative equity)
- Not shopping around for rates (can save thousands)
✅ Best Practices
- Get pre-approved from bank/credit union first
- Put down at least 20% to avoid negative equity
- Finance for 48 months or less
- Check credit score before shopping (700+ = best rates)
- Negotiate price separately from financing
- Consider certified pre-owned for value
How to Use This Auto Loan Calculator
Enter Car Details
Input car price, down payment, trade-in value, loan term (36-72 months), and interest rate.
Add Taxes & Fees
Enter your state's sales tax rate and any dealer fees to see the true out-the-door cost.
Review & Decide
Check if you meet the 20/4/10 rule, view total interest, and compare different loan scenarios.
Frequently Asked Questions
What is a good interest rate for a car loan?
Good rates depend on your credit score. Excellent credit (750+): 4-6% for new, 5-7% for used. Good credit (700-749): 6-8% for new, 7-10% for used. Fair credit (650-699): 8-12% for new, 10-15% for used. Below 650: 12-18%+. New cars always get better rates than used. Credit unions and banks typically offer better rates than dealer financing.
How much should I put down on a car?
Put down at least 20% to avoid being underwater (owing more than the car's worth). Cars depreciate 20-30% in the first year, so a smaller down payment means you'll owe more than the car is worth if you need to sell. A 20% down payment also gets you better interest rates and lower monthly payments. If you can't afford 20% down, consider a less expensive car.
Should I finance through the dealer or my bank?
Get pre-approved from your bank or credit union BEFORE visiting the dealer. This gives you negotiating power and a rate to beat. Dealers often mark up interest rates to make profit (dealer reserve). However, manufacturers sometimes offer 0% or low promotional rates through dealers that beat bank rates. Compare both and choose the lowest APR. Credit unions typically offer the best rates.
What is the 20/4/10 rule for car buying?
The 20/4/10 rule helps you buy a car you can afford: 20% down payment, finance for no more than 4 years, and total car expenses (payment + insurance + gas + maintenance) shouldn't exceed 10% of your gross monthly income. For example, with $5,000 monthly income, your max car expenses are $500/month. This rule prevents you from becoming "car poor" and ensures you can handle the total cost of ownership.