Auto Payment Calculator
This auto payment calculator figures monthly payments for the six most popular auto loan terms so you can decide which payment best fits your budget.
Simply enter the amount financed and the interest rate, then click the "Calculate Auto Payment Amounts" button.
Which Auto Payment Fits Your Budget?
Before you buy a vehicle, it’s a good idea to look at all your auto payment options.
The most common auto payment terms are 12, 24, 36, 48, 60, and 72 months. Each loan term will produce a different monthly payment because of the difference in amortization.
Comparing the impact each of these different loan terms will have on your budget can be difficult.
This Auto Payment Calculator makes it easy by showing the required auto payments for each of the most popular loan terms so you can select the one that best fits your budget and personal financial goals.
Below are helpful tips and and best practices so that you can maximize the value you get for any given auto payment when buying a vehicle.
Best Practices When Buying A Vehicle
Before walking on the car lot to purchase a vehicle, it is important to ask yourself a few key questions:
Once you’ve answered those questions, then you can begin shopping without being dangerously swayed by emotions. Below are tips to help you during your time on the car lot.
Paying With Cash Vs. Financing With Auto Payments
Now that you’ve decided which vehicle to buy and you’ve got the best deal, what’s next? Are you going to pay cash or apply for auto financing?
Not everyone can afford to pay for their new vehicle with cash. Or maybe you have the cash but don’t want to deplete your savings.
The reality is an auto loan with monthly payments will increase the cost of your car by the amount of interest. The longer the loan term the more that vehicle will cost you. That is why, in many cases, it is better to pay cash for your new auto vs. over time with payments.
If you choose to buy your car through financing, take into consideration that the sales agent is working on a commission. They will try to up-sell you items like warranties, car alarms and other accessories. Car dealers can make a lot of money by selling these add-ons so don’t be pressured!
How will you know if you can really afford an auto payment if you haven’t determined a reasonable transportation expense range for your income?
Our Budget Calculator can assist you in figuring out a proper amount you may spend when making auto payments. Try that calculator in conjunction with the Auto Payment Calculator to make the best possible decision about what car fits your financial situation.
Remember though, if you have cash in the bank, and buying a vehicle is a necessity, consider using cash instead of financing. You’ll save a great deal of money in interest and the vehicle will be much more enjoyable to drive knowing you don’t have debt slowing you down.
Auto Payment Calculator Terms & Definitions
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Auto Payment Calculator
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