Auto Loan Calculator
What will your car payment actually be?
Total cost
$0
down payment + all payments
Assumes sales tax applies to the price after your trade-in credit (most states do this, a few tax the full price - check yours), and that the loan finances price plus tax minus your down payment and trade-in. Doesn't include registration, documentation fees, or add-ons some dealers roll into the loan.
Frequently asked questions
What is EMI and how is it calculated?
EMI (Equated Monthly Installment) is the fixed monthly payment that repays a loan over its tenure, made up of principal and interest combined. It's calculated from the loan amount, interest rate, and tenure using a standard amortization formula -- the same one this calculator uses, so you can see the exact monthly figure and how much of each payment goes to interest versus principal.Read more: Auto Loan Calculator: The Real Monthly Cost of Financing a Car
Does prepaying a loan actually save money?
Yes, almost always -- a prepayment reduces the outstanding principal, which reduces the interest charged on every remaining installment. The earlier in the loan you prepay, the more you save, since interest is front-loaded in most amortization schedules. Check for prepayment penalties with your lender first.Read more: Financing a Car: Interest on Something That’s Shrinking
What's the difference between flat rate and reducing balance interest?
Flat-rate interest is charged on the full original loan amount for the entire tenure, even as you pay it down -- reducing-balance interest is charged only on what's still outstanding, so it falls every month as you repay. A flat rate quoted at the same percentage as a reducing-balance rate is effectively much more expensive; always confirm which method a lender is using.Read more: Credit Card Payoff Calculator: What Minimum Payments Really Cost
Will improving my credit score lower my loan interest rate?
Usually, yes. Lenders price risk into the interest rate they offer, and a higher credit score signals lower risk, which typically qualifies you for better rates. It varies by lender and loan type, but it's one of the few loan-cost factors largely within your control before you apply.Read more: Payoff vs Invest Calculator: Extra Cash, Best Use
Estimates only, not financial advice. See our Disclaimer.
