Auto Loan Payment Basics
This auto payment calculator is designed to aid you in determining whether your can afford the purchase of your next car. The calculator factors that will determine your monthly payment for transportation including the auto purchase price, your down payment, the auto loan interest rate and its term length. In addition, you will need to add to your monthly budget calculations related expenses such as auto registration fees, taxes, insurance, maintenance and fuel charges.
Owning an auto in 2019 is a major investment. According to ValuePenguin, US consumers in 2019 borrow $30,621 for a new auto loan and $19,339 for a used auto loan. The average length for a new auto loan is 68 months, with average APRs ranging between 3.71% (36 months) to 3.93% (60 months). Interest rates will vary based on the financial lender (auto dealership, traditional bank or credit union), the consumer’s credit score and type of auto being purchased.
Calculate Your Monthly Auto Payment
To use this auto payment calculator, enter the auto purchase price, your initial deposit, the auto loan interest rate and term of the loan. The calculated monthly auto payment is only your financial costs. You will need to add your auto registration fees, insurance, fuel, parking and maintenance to determine your total cost of auto ownership.
As an example, a borrower purchasing an auto valued at $20,000, placing a deposit of $4,000 (cash or trade-in), with an auto loan at 4% APR, for 60 months, will have a monthly auto finance payment of $295/Month.
You will find that the most important factors affecting your auto financial payment is the total amount of the auto loan and the term length of the loan.