Auto & Car Loan Calculator

If you’re in the market for a new or used car, you’re likely to encounter the question of how to calculate your car loan payment. It can be tricky to figure out, especially if you’ve never done it before. By following these steps, you’ll be able to determine exactly what your monthly car payments will be. So let’s get started!

How To Use The Auto Loan Calculator

To calculate your monthly car loan payment you’ll need to know four things: the car price, the loan term, the down payment, any trade-in value you have, and the interest rate. With all of that information, you can input it into our auto loan calculator and get an estimate of your monthly payments.

Auto Loan Calculator

Vehicle price ($)
Interest rate (%)
Period (month)
Down Payment ($)
Calculate
Monthly Payment
Total Interest Payment
Total Amount to Pay

Or, if you want to do the math yourself, here’s how:

How Are Auto Loans Calculated?

The amount of money you borrow is called the principal. To calculate your monthly auto loan payment, you divide the total interest you will pay on the loan by the number of months in the loan term. This number, plus the principal, is the monthly auto loan payment.

For example: You’re looking to buy a car for $20,000 with a five-year loan and you have a trade-in worth $2000. Your interest rate is six percent. You’ll need to make a down payment of at least ten percent, which in this case is $2000. So, your loan amount will be $18,000. At six percent interest, over five years you’ll pay $1080 in interest for a total monthly payment of just under $400 ($390.80 to be exact).

Auto Loan Basics: Calculate Your Own Auto Loan Payment

First, you take the vehicle price and multiply it by the interest rate. This will give you the amount of interest that will accrue on the loan. If you do not know the interest rate, don’t worry! You can still estimate your monthly payment by using the average interest rate for used cars, which is currently between 4-8%, depending on if it’s a new car or used car and other factors like your financial situation (the main factor is your credit score and credit history). The total interest you will pay on the loan can be found by multiplying the vehicle price by the length of the loan in months, and then multiplying that number by the interest rate.

Next, take the vehicle price and subtract any money you put down as a down payment. If you got a cash rebate or multiple cash rebates, this will also lower your loan amount and monthly auto loan payments.

Now that you know how auto loans are calculated, you can use an online auto loan calculator to estimate your monthly payment. Remember to include any additional fees, such as sales tax, in your calculation. By using an auto loan calculator, you can find out how much car you can afford and filter your search based on the total loan cost.

Saving Money On Car Loans

You can save money on car loans by making a larger down payment, which will reduce the amount of interest you will pay. Any trade-in value with your car purchase will also lower the amount of your loan, and therefore the interest you will pay.

You can also refinance your auto loan to get a lower interest rate, which will lower your monthly payment and the total interest you pay on the loan. Keep in mind that you will need to own your car outright or have equity in it to be able to refinance.

Making extra payments on your auto loan can also help you pay off the loan sooner and save money on interest. You can make bi-weekly payments instead of monthly payments, or make additional principal-only payments on top of your regular monthly payment.

Your Next Vehicle Purchase at Wii Auto Sales

If you are in the market for a great deal on a used car, truck, or SUV, come to Wii Auto Sales. We have a large selection of quality vehicles to choose from at great prices. We offer financing for all types of credit, and we are here to help you get into the car you need and get trade-in value on your current car.

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