## Auto Loan Calculator Help

Use this calculator to calculate loan details when the down payment is expressed as an amount.

Unlike a general loan calculator, this calculator allows for two unknown values. In addition to solving for the monthly payment amount, it will also calculate the "Car Price", the "Down Payment Amount" or the "Loan Amount". Just enter a "0" (zero) for one of the three values and provide the other two.

Note that the calculator calculates what percentage the down payment is of the price of the car. This is handy when a lender requires a borrower to provide a minimum percentage cash deposit.

The term (duration) of the loan is expressed as a number of months.

- 60 months = 5 years
- 120 months = 10 years
- 180 months = 15 years
- 240 months = 20 years
- 360 months = 30 years

If you need the ability to print the amortization schedule, or more flexibility such as selecting different payment or compounding frequencies or the ability to calculate term or interest rate, please see the auto loan calculator here: **https://AccurateCalculators.com/auto-loan-calculator**

#### Currency and Date Conventions

All calculators will remember your choice. You may also change it at any time.

Clicking **"Save changes"** will cause the calculator to reload. Your edits will be lost.

## Auto Loan Examples

We will use the example of a $30,000 car loan as this seems to be about average for new and used cars in 2021. With a credit score range of 350-520, the average rate is close to 20%.

For a 6-year loan, your monthly payment is $718 a month and you will pay back $21,738 in interest on top of the original $30,000 owed for the vehicle. It will take about 4 years to hit the halfway point causing you to be in negative equity through most of the loan.

This means if you get in an accident, or the car breaks down, you will still owe over half of the balance of the loan even if you get a new vehicle. You can’t trade in the car as the value is less than what is still owed even 4 years later.

With a credit scores range of 520-600 the average interest rate is around 12.5%. This would put your payment at $594.34 a month for 6 years and the total interest paid is $12,792 on top of the original $30,000. It will take a little over 3 ½ years to hit the halfway point still making it carry negative equity till close to the end of the loan.

With a credit score range of 720-850, the average interest rate is around 3%. This puts the payment at $455.81 for 6 years and the total interest paid is $2,818.34 on top of the original $30,000. This will take right at the 3-year mark to hit the halfway point. By the end of year four, only $10,604 will be owed on the vehicle.

Clearly you can see that the $262.77 with someone who has a poor score and $138.53 for someone with below average per month eats away at savings which makes the next emergency that much harder to get through.

Most families have 2 cars so, when you apply this times two, the amount people pay in interest is the difference between someone who can save and someone who lives paycheck to paycheck.