Car Loan Calculator

Having an idea of what your potential car loan payment will be puts you in the driver's seat when it comes to shopping for a new car. Knowing exactly how much you can afford gives you the power to negotiate for a better interest rate, more incentives, and even tells you if it's time for you to walk away from the table.

Use our car loan calculator below to get an estimate on your monthly payment.

How to Use the Car Loan Calculator

The car loan calculator above is a simplified tool to make finding out what your potential car loan payment will be. It's important to remember that this tool will not give you the exact figure the dealership will offer you. However, this serves as an excellent barometer to help you find vehicles in your price range that make sense on your monthly budget.

Vehicle Value: Enter the sticker price of your desired vehicle
Trade-in Vehicle Value: If you plan on trading in a vehicle, enter its value here
Down Payment: Enter the amount you plan on putting down on your new car here
Interest Rate: Enter your pre-approved or your expected interest rate here (in decimal format)
Loan Term: Enter the number of months it will take you to pay off the loan here

Disclaimer: The figure in the "Car loan payment" field is an estimate. There are a variety of factors that go into your car loan (state taxes, car dealership specific deals and/or kickbacks, etc.) that we did not include in this calculator as it would make it unwieldy to use. Please do not take this number into a car dealership and try to use it as a bargaining chip. It won't work.

Finding out my car's value

Finding out my trade-in's value

There's no guarantee that the dealership you're working with will give you what your trade in is worth. They may not even accept your trade in depending on a variety of factors. After all, they have to turn a profit on it.

However, the best way to find out your trade-in's value is to go to Kelley Blue Book or take it up to CarMax and have them give you an estimate. CarMax gives some of the most fair estimates you'll find from a car dealership and Kelley Blue Book is pretty much the gold standard for car valuations. The dealership will undoubtedly use it to make their final decision.

Down payments on a car

How do I know what my interest rate is?

Ideally, you'll be pre-approved for a car loan with your bank and they'll provide you with both your interest rate and the maximum amount they're willing to let you borrow. Both of these figures depend on your credit score as well as your credit history with this particular institution.

If you have good credit and history, you'll most likely have a low interest rate and a high loan amount. If your credit is less than stellar and you have some black marks on your credit report, your interest rate could be high and for a small amount. You could also not be approved at all.

If you need help building your credit, check out our guide.

Differences in Loan Terms

Changing the length of your car loan is a standard negotiating tactic for getting a better price on a car. If you choose to go with a longer car loan term, your monthly payment will be lower. However, you will end up paying more in interest than you would with a shorter loan. The monthly payments on shorter loans do cost more, but you end up saving money due to not letting interest to accrue on the loan.

Get the Best Price on a New Car

Not everyone has the desire to fight tooth and nail at the negotiating table to shave off a point on their interest rate or get the manufacturer's extended warranty on the house. However, there are some simple and easy ways that you get a better price on a new car.

Shop Around: Get multiple quotes from multiple dealerships. This lets them know that they have to fight for your business and this will make them more likely to give you a better deal.
Buy Last Year's Model: The difference between a year old car (that's still on the lot) and a brand new on are negligible. You can shave thousands of dollars off the sticker price going after last year's model because the dealership wants it off the lot.
Time Your Shopping: Car salesmen have quotas and they make commission. Shopping near the very beginning or very end of the day, week, or month can give you a bit leverage especially if the salesman needs to hit their numbers.
Big Down Payment: Putting 20% (or more) down on a new car will significantly lower your monthly payment. However, do not let the salesman know that you're planning on putting money down until after you've negotiated the final price of the car.
Walk Out: This is your nuclear option. If the dealership isn't budging on the price or they're giving you the run around, let them know that you're about to walk out. They don't want that. They want you to stay on the lot because the moment you leave, you're probably never coming back.