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Auto Loan CalculatorNew LoanRefinance LoanPurchase Loan CalculatorPrice of the car you want $ Length of loan(months) 12 BreakdownCar price $ 0 Down payment $ 0 Length of loan (months) 0 Annual interest rate % 0 Total interest paid $ 0 Get Best RatesBreakdownLoan Amount $ 0 Current Payment $ 0 New Payment $ 0 Monthly Savings $ 0 Total Savings $ 0 Refinance CalculatorRemaining Loan Terms in Months New Loan Terms in Months 12 A car loan calculator can help you estimate the monthly payment, interest rate and loan term you can afford before you purchase a new or used car. Getting these estimates can give you a good idea of how much you’d pay overall for an auto loan. It can also help you negotiate with loan providers for more favorable terms. We at the Home Media reviews team will explain why an auto loan calculator is important and how to use one. We’ll also discuss providers that are worth considering and ranked high in our reviews of the best auto loan rates and best auto refinance rates of 2022. Car Loan Calculator: OverviewA car loan calculator is a tool you can use to analyze your car loan options before making a purchase. With a calculator, you can determine how large a loan you can afford to take on and, as a result, how much car you can afford. It can also be used to ensure the dealership or lender you finance your new or used car with isn’t trying to inflate your monthly payment. Most auto loan calculators ask for standard information, such as:
Keep in mind that an auto loan payment calculator likely can’t tell you what loan terms you qualify for based on this information. You may or may not find similar terms from the dealership, bank or credit union you finance your car purchase with. Factors That Affect Car Loan RatesSeveral factors will impact your auto loan rate from a dealership or third-party lender, including:
Note that new cars typically have lower rates than used cars because they are less risky for lenders. Making a larger down payment may also get you a lower auto loan rate. How to Use a Car Loan CalculatorAn auto loan calculator considers the car price, loan term and interest rate to tell you what your monthly payment would be. You can adjust factors in the calculator, such as how many months you want to pay your car loan, to see how your monthly payment would change. We explain the parts of a car loan calculator in further detail below.
After you input the details above, the auto loan calculator will typically display the following results:
What are Average Auto Loan Rates?The auto loan rates you’re offered depend largely on your credit score. Borrowers with credit scores higher than 660 tend to receive lower interest rates than those who have credit scores below that number. The graph below shows average interest rates for new and used cars, according to Experian’s Q2 2022 State of the Automotive Finance Market report.
Explanation of Auto Loan TermsHere are explanations of some popular auto loan terms you may see when using a car loan calculator or shopping around for auto loan rates:
What a Car Loan Calculator Can Tell YouA car loan calculator can show you your potential monthly payment, as well as the bigger picture of how much you’ll pay for your new or used car overall. However, there are other costs beyond simply your interest rate. How to Calculate APR on a Car LoanIn many cases, car loan calculators don’t reflect state and local sales taxes or registration fees. Remember, your APR is a combination of your interest rates and any fees or discounts your lender includes. Other variables often left out of car loan calculators include:
You can search online to find out about lenders’ fees or contact them directly to learn about costs in your area. An auto loan calculator can also be used to compare lender offers and try different interest rates and loan terms. The knowledge you gain from using this tool can help you negotiate a fair deal with a lender or dealership to get the best auto loan rate for your situation. Our Recommendations for Auto LoansWhen you want the best auto loan rates, a car loan estimator is a great resource for making comparisons. We recommend checking out Auto Approve and myAutoloan, both of which ranked high in our review of the best auto loan rates of 2022. Auto Approve: Top Choice for RefinancingAuto Approve is one of our top choices for the best auto loan rates. It has a strong reputation among industry organizations as a refinance auto loan specialist. The company’s lease buyout option makes it a viable choice for people looking to purchase vehicles. Auto Approve rates start at 2.94% APR for refinancing, though only borrowers with high credit scores can access these rates. Read more: Auto Approve review myAutoloan: Most Popular MarketplaceActing as an online marketplace, myAutoloan lets you comparison shop for the best auto loan rates from many lenders. You can enter your personal information into its online form and receive instant loan offers. Borrowers can find APRs as low as 3.99% for new auto loans, 4.24% for used auto loans and 2.49% for refinancing. The company has strong customer service ratings, earning an A+ rating from the Better Business Bureau and a 4.2-star rating out of 5.0 from Trustpilot. Keep reading: myAutoloan review Frequently Asked QuestionsOur MethodologyBecause consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best auto loan companies. We collected data on dozens of loan providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the companies that scored the most points topping the list. Here are the factors our ratings take into account:
*Data accurate at time of publication. How do you know how much you can get approved for a car loan?The main thing lenders look at is your debt to income ratio (DTI), the percentage of your monthly gross income that goes toward paying debts. Lenders like to see a DTI ratio of 40% or less, which means if you bring in $5,000 of income each month, your debt payments should be no more than $2,000.
How much can I borrow for a car based on my income?Follow the 35% rule
Whether you're paying cash, leasing, or financing a car, your upper spending limit really shouldn't be a penny more than 35% of your gross annual income. That means if you make $36,000 a year, the car price shouldn't exceed $12,600. Make $60,000, and the car price should fall below $21,000.
How much should I spend on a car if I make $60000?How much should I spend on a car if I make $60,000? If your take-home pay is $60,000 per year, you should pay no more than $750 per month for a car, which totals 15% of your monthly take-home pay.
How much car can I afford if I make 50k?How much car can I afford if I make $50,000? While it depends on factors like your credit score, loan terms, down payment and any potential trade-in value, you may find that a vehicle in the $20,000 to $35,000 range will fit your budget.
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