Auto Loan Calculator
What you should know about auto finance
If you’ve never had a car loan before, it can help you get a quick overview of how car loans work. Most people can’t pay cash for a car or truck, so they apply for a car loan, usually at a bank, credit union, online loan company, or auto dealership. Once you are approved, the lender will provide a sum of money to pay for the car you are buying. You get the car to drive and also make monthly loan payments until you pay off the loan in full.
Various aspects of a car loan (some over which you have more control than others contribute to the amount you will pay monthly and over the life of the loan. Our car loan calculator is a tool to try out different values and plan what you will spend.
How to use the car loan calculator
Below is a description of the information you can enter into this auto loan calculator, some required and some optional.
- Car price: Enter the price you want to pay for the car. To estimate the price of a new car, start with the car’s suggested retail price (MSRP). Deduct savings from negotiating with dealers and manufacturer discounts. Add additional costs such as vehicle options and “target fees” for new vehicles.
For used cars, estimating the selling price is a little more complicated. You can start with the seller’s asking price, but you can also negotiate for less. To get a fair price idea, use our online price guide or check your local online ads to find comparable cars. - Interest rate: There are several ways to determine the interest rate to enter. If you are eligible or pre-approved for a loan, simply enter the rate you are offered. Otherwise, you can use the current average interest rate for your credit score. This table is a good guide:
|
Credit score |
Average APR, new car |
Average APR, used car |
|---|---|---|
|
Superprime: 781-850. |
4.75%. |
5.99%. |
|
Prime: 661-780. |
5.82%. |
7.83%. |
|
Nonprime: 601-660. |
8.12%. |
12.08%. |
|
Subprime: 501-600. |
10.79%. |
17.46%. |
|
Deep subprime: 300-500. |
13.42%. |
20.62%. |
|
Source: Experian Information Solutions. |
||
These average rates are based on VantageScore credit scores and are provided by consumer credit agency Experian. It’s worth noting that as the Federal Reserve raises the Federal Funds Rate, so will auto loan interest rates. In March 2023, car site Edmunds.com listed the average interest rate for new cars as his APR of 7% for new car loans and his APR of 11.4% for used car loans.
- Number of months: Enter the term of the loan or how long it will take to repay the loan. Auto loans typically have a term of 12 months, with common terms being 24, 36, 48, 60, 72, or 84 months. We recommend using NerdWallet within 60 months if possible. A longer term reduces your monthly payments, but usually pays more interest.
- Advance payment (optional): Enter the total amount of cash you want to put in your car. Not all lenders require an upfront payment, but NerdWallet suggests paying at least 20% of the purchase price of a new car or his 10% for a used car. If you can’t afford that amount, deposit as much as you can without depleting your savings or emergency funds. By offering any amount, you can reduce the loan amount and the total cost of the loan.
- Exchange value (optional): If applicable, enter the current vehicle trade-in value. You can use our online site for reviews and pricing. When using a price guide, be sure to check the trade-in value and not the retail price (the price at which the dealer sells the car). You can also use cash buy offers from online retailers like CarMax, Carvana, Vroom as a base.
- Transaction outstanding amount (optional): If you still have a loan payment for the vehicle you want to trade, enter your balance here. This is the repayment amount that the moneylender can offer.
Auto Loan Payment Calculator Results Explained
To use the car loan interest calculator, enter a few details about the loan, including:
- Vehicle cost: The amount you want to borrow to buy the car. If you plan to make a down payment or trade-in, subtract that amount from the car’s price to determine the loan amount.
- Term: The amount of time you have to repay the loan. In general, the longer the term, the lower your monthly payment, but the higher the total interest paid will be. On the other hand, the shorter the term, the higher your monthly payment, and the lower the total interest paid will be.
- New/Used: Whether the car you want to buy is new or used. If you don’t know the interest rate, this can help determine the rate you’ll get (interest rates tend to be higher for used cars).
- Interest rate: The cost to borrow the money, expressed as a percentage of the loan.
After you enter the details, the auto loan payment and interest calculator automatically displays the results, including the dollar amounts for the following:
- Total monthly payment: The amount you’ll pay each month for the duration of the loan. Some of each monthly payment goes toward paying down the principal, and part applies to interest.
- Total principal paid: The total amount of money you’ll borrow to buy the car.
- Total interest paid: The total amount of interest you’ll have paid over the life of the loan. In general, the longer you take to repay the loan, the more interest you pay overall. Add together the total principal paid and total interest paid to see the total overall cost of the car.
Car Loan Calculator Excel
You can use the car loan calculator template created in Microsoft Excel. It works very easily and simply so you don’t need to do the entire math. All you need to enter in the calculator is the car price, the down payment that you must pay the interest rate, and the repayment period (year period) and you are done with it.
Wonder the way to calculate the loan, we provide the best loan calculator tool right here. You can check it out!
In just a second you will see the result of the monthly payment that you must pay, the total payment for the whole period, and the total interest payment. Then you can see if the payment suits you well enough and whether you can afford it. If you cannot afford it, then maybe you can make some adjustments such as applying for a higher repayment period or rise up your down payment. This will make your monthly payment goes lower for your convenience so you can still buy the car and go on with your life.
Navy Federal auto loans
There’s a reason Navy Federal Credit Union (NFCU) is by far the largest credit union in the U.S. by assets. It offers some of the most competitive loan rates on the market, features discounts for military members, and provides membership benefits like free credit alerts. You don’t have to be in the military to join, though you will need a military connection.
Here’s what you could receive from a Navy Federal auto loan:
- Military rate discounts: Active-duty, senior enlisted members (E-7 through E-9) can receive a 1% APR discount. All active-duty and retired military members can receive a 0.25% APR discount.
- Long payment terms: You can choose an auto loan repayment term of up to 85 to 96 months if you borrow a minimum of $30,000.
- Loans for private purchases: Financing can be used to buy vehicles from both dealerships or private parties.
- Some details aren’t disclosed: Navy Federal doesn’t disclose some details upfront, including credit score requirements, minimum loan amounts or maximum APRs.
- Best for military members and families: Navy Federal is a good choice for anyone, but members of the military can receive special discounts.
Navy Federal pros and cons
Consider these benefits and drawbacks of a loan with Navy Federal before submitting an application.
PROS
-
Variety of term lengths
-
Low APR
- Car buying service
-
Membership required
- Restrictions for older used vehicles
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Do you qualify?
Navy Federal does not specify any credit or income requirements. However, you will need to become a member of Navy Federal. You may qualify if you’re in one of the following categories:
- An active-duty member of the Army, Marine Corps, Navy, Air Force, Coast Guard, National Guard or Space Force.
- Delayed Entry Program.
- DOD Officer Candidate/ROTC.
- DOD Reservist.
- Veteran, retiree, or annuitant.
- Parent, grandparent, spouse, sibling, child, grandchild, or household member of one of the above categories.
- DOD civilian employee.
- U.S. government employee assigned to a DOD installation.
- DOD contractor assigned to a U.S. government installation.
- DOD civilian retiree or annuitant.
How Navy Federal auto loans compare
If you’re looking for reputable credit unions that cater to the military, you have several other options to choose from, including USAA. PenFed also offers special incentives for military members, but unlike NFCU and USAA Bank, anyone can join.
| Navy Federal | USAA | PenFed | |
|---|---|---|---|
| APR | 4.54% and up | 4.49%* and up | 5.19% and up |
| Terms | 36-96 months | 12-84 months | 36-84 months |
| Amount | Not disclosed | $5,000 and up | $500-$150,000 |
| Min. Credit Score | Not disclosed | Not disclosed | Not disclosed |
Maybe you want to read more of this reading: Discover personal loans: a comprehensive review for 2023
