What is an Auto Loan Payment Calculator?
Avatar photo Written by Adriano Marques

2 min read • Published April 14, 22

When shopping for a vehicle and considering financing options, one of the first things you may want to know is how much you can expect the monthly payment to be. An auto loan payment calculator is a tool that you can use to estimate what your monthly car loan payment will be or how much you can afford to spend.

How do Auto Loan Payment Calculators Work?

Most auto loan calculators take the following factors into consideration to determine their estimate:

  • Vehicle price. This can be the sticker price of a specific car you are interested in, or just the approximate cost of the type of vehicle you are looking for.
  • Trade-in value. The trade-in value is the expected value of any vehicle that you currently own and would like to trade-in. If you aren’t sure what the trade-in value is of your vehicle, you can get an approximation from Kelley Blue Book.
  • Down payment. The down payment is the amount of cash that you plan to put towards the purchase of the new vehicle. The more money you put down, the less you will need to finance.
  • Interest rate. The interest rate can vary because of several factors, including the borrower’s credit history, the loan term length, and the type of vehicle being financed. If you are pre-qualified for a loan, simply use that interest rate. Otherwise, you can check online lenders for average interest rates for borrowers with similar credit scores as you.
  • Financing term length. Loan terms are typically in 12-month increments, most often 36, 48, 60, or 72. The longer the term, the less you will pay each month, but the more interest you will pay over the life of the loan.

Once you enter all the information, the Auto Loan Calculator will determine an estimate of what your monthly payment would be. Something to keep in mind are the are costs associated with the purchase of a vehicle that the calculators don’t include. Some of these items are dealer documentation fees, registration fees, and state and local taxes.

An auto loan payment calculator is a great tool for estimating how much you will pay monthly for your new vehicle. However, you can also use it to compare the difference in costs between interest rates, terms lengths, and down payment amounts so that you can determine which combination of factors is going to fit into your budget best. This information is important to know before you shop for your new vehicle and negotiate the price and financing terms.

Do you want to save even more money? Check out the Savings Club Precise Loan Calculator to see how financing your vehicle purchase through Savings Club can save you money when compared to a traditional auto loan.


Adriano Marques