See How a New Vehicle Fits Your Budget
How to Calculate an Auto Loan Payment
Our monthly auto loan payment calculator will help you determine what best suits your budget. Your monthly payment is based on the net purchase price of the vehicle, the loan term, and the interest rate for the loan.
The loan amount is based on the net purchase price of the vehicle (including sales tax) or the vehicle price without any cash rebate, trade-in, or down payment.
To get the most accurate loan payment estimation, follow these steps below.
1. Identify the Vehicle Purchase Price
The first step in calculating a vehicle payment is to determine the purchase price of the car. This is the price of the car before any trade-in value or down payment is considered.
Keep in mind that the purchase price includes taxes, title fees, and any other fees associated with the purchase.
2. Research Your Current Vehicle's Trade-In Value
If you're trading in a vehicle, determine its value. The trade-in value is what a dealer will offer you for your current vehicle. You can research the value of your trade-in on various websites, such as Kelley Blue Book.
3. Determine the Down Payment
The down payment is the amount of money you pay upfront to reduce the amount financed. A larger down payment means a lower monthly payment and less interest paid over the life of the loan.
Determine the amount you're willing to put down, which can be a percentage of the purchase price or a set dollar amount.
4. Select an Interest Rate
The interest rate is the percentage of the loan amount charged as interest. The interest rate is determined by several factors, including credit score, loan term, and the type of car being financed.
5. Choose a Loan Term
The loan term is the length of time the loan will be repaid. The longer the loan term, the lower the monthly payment, but the more interest will be paid over the life of the loan.
Common loan terms for car loans are 36, 48, 60, and 72 months.
6. Calculate the Monthly Payment
Once you have all the information needed, you can calculate the monthly payment using the auto loan calculator.
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