Auto Loan Calculator Estimate monthly payments, compare loan offers, and avoid negative equity — with real 2025 rates and...
Auto Loan Calculator
Estimate monthly payments, compare loan offers, and avoid negative equity — with real 2025 rates and fees.
Formula**:
$$PMT = P \frac{r(1+r)^n}{(1+r)^n - 1}$$
Where: • $P$ = loan amount • $r$ = monthly interest rate (APR ÷ 12) • $n$ = number of payments
Example: $30K loan @ 7.2% for 72 mos: $30,000 × 0.006 × (1.006)^{72} / [(1.006)^{72} − 1] = **$514.85** + $25 gap = **$539.85/mo** Total interest: **$7,069**
✅ Pro Tip**: Use the full APR (rate + fees) to compare lenders — not just the headline rate.
⚠️ Watch for these dealer tricks:
- Yo-Yo Financing** — “You’re approved!” then call back: “Actually, we need $5K more down.”
- Payment Packing** — quoting $399/mo but hiding $8K in fees/extended term.
- Spot Delivery** — drive off before loan is approved → bait-and-switch later.
- Forced GAP** — $50/mo instead of $25 market rate.
✅ Protect Yourself**:
- Get pre-approved at a credit union *before* dealership visit
- Read the **Buyer’s Order** and **Truth in Lending** forms *before* signing
- Never sign blank documents
| Loan Type | Avg. Rate | Term | Payment on $25K |
|---|---|---|---|
| New Car | 7.2% | 69 mo | $444/mo |
| Used Car | 10.5% | 65 mo | $540/mo |
| Deep Subprime | 20.4% | 63 mo | $782/mo |
📉 Negative Equity Reality**:
- 30% of new car buyers start **$5,000+ underwater** (Experian Q1 2025)
- 72+ month loans = 68% chance of being upside-down at trade-in
- Avoid if possible: loans >60 months or >110% LTV
➡️ Standard Loan
Enter loan amount, rate, and term to see payment, interest, and APR.
➡️ Affordability
“I can pay $500/mo” → What’s the max loan I qualify for?
➡️ Refinance
See monthly savings, break-even point, and interest saved.
➡️ Lease vs. Buy
Compare 3-year lease vs. 72-month loan — total cost of ownership.
Note: Assumes fixed rate, no prepayment penalties, on-time payments.