Auto Loan Payment Calculator

How to Use the Auto Loan Payment Calculator

You can get started with the auto loan payment calculator in three simple steps.

1. Enter the Loan Amount

Use the slider to enter the loan amount you intend on borrowing. You can also type the amount into the field provided. The amount can be as low as $5,000 up to $100,000.

2. Enter the Loan Term

Enter the loan term, or repayment duration, in years using the slider or by typing it into the text field. Available loan terms are usually between one and 10 years.

Some loan terms are expressed as months. If this is the case with your loan, divide its repayment term by 12 to get the number of term years. For example, a 72-month term, divided by 12, is a 6-year loan term.

3. Enter the Interest Rate

Input the interest rate for the loan into the “interest rate” text field.

As you make changes to each loan detail field, you’ll see the auto loan payment calculator dynamically update your estimated monthly payment information on the right. You’ll see insightful breakdowns, like your monthly payment amount, how much of that payment is applied to the loan principal vs. interest, and the total interest you’ll pay over the loan term.

As you may have noted, this is not an auto loan calculator with credit score. It will calculate payments and total interest based on an interest rate vs. a score.

Benefits of Using an Auto Loan Payment Calculator

Using an auto loan payment calculator empowers you to make informed decisions before financing your next vehicle. It helps you:

• Budget your monthly finances by offering concrete estimates.

• Compare auto loan financing offers.

• Visualize how loan terms impact your monthly payment.

• Understand how much of each payment goes toward the principal balance.

• See how much you’re paying in total interest charges.

How to Use the Auto Loan Payment Calculator to Compare Scenarios

A practical way to use the auto loan payment calculator is by adjusting each variable — loan amount, loan term and interest rate — to guide you toward your ideal loan offer.

Scenario 1. Say you check your budget and use a money tracker app and determine that you can spend $500 a month for a car payment. You are considering making a down payment of $10,000 toward a $40,000 car.

This means the loan amount you’d finance is $30,000. Assuming a five-year term at 6%, your estimated payment is $1,079.99. This estimated monthly payment is more than twice your budgeted amount, so this loan isn’t financially feasible.

Scenario 2. To get closer to your preferred monthly payment budget, you consider buying a more affordable car and extending your loan term. The next car you consider requires a loan amount of $20,000, and you choose a 7-year term at 6%. Now, your estimated monthly auto payment is $530.27 — much more in line with your desired budget.

By using the auto loan payment calculator in this way, you can find which particular vehicle and loan suits you best.

Recommended: Why Did My Credit Score Drop After a Dispute?

What Is a Credit Score?

A credit score is a three-digit number that summarizes your creditworthiness, based on your past and current borrowing and repayment habits. The Fair Isaac Corporation (FICO®) is a popular credit scoring model that’s used by lenders to assess how risky lending to you might be, however, the VantageScore is another commonly used model. One key similarity between the VantageScore vs. FICO is that both generally use a credit score range from 300-850.

These two models also consider similar factors in their credit score calculations:

• Payment history

• Credit utilization

• Credit length/age

• Credit mix

• New credit

Although each scoring model looks at similar data points, they differ in how impactful each factor is in their respective calculations. Your credit score updates regularly (often monthly), based on your most recently reported repayment and borrowing activity.

How to Build Credit

Understanding how to build credit and what affects your credit score can help you maintain a strong credit profile. Building your credit isn’t a precise science — instead, practicing responsible borrowing and payment behavior can positively impact your score overall. Paying at least the minimum payment due on your credit cards and loans each month can have a major influence on your FICO score; it makes up 35% of your score calculation.

Credit utilization, which is the amount of credit you use compared to your available credit, determines 30% of your FICO score. Keeping your credit utilization under 30% or ideally 10% of your available credit can help build your score. (A spending app might help you take control of this figure if yours is running high.)

Responsibly managing a mix of credit types and not opening multiple new credit accounts in a short period can also positively impact your score.

If you are working on building your score to qualify for more favorable terms, you might use a credit score auto loan calculator to gauge the impact of this activity.

Recommended: How Long Does It Take to Build Credit?

Types of Credit

There are different types of credit that come together to form your credit file. The main credit types include:

• Revolving credit. A revolving account typically provides you with the ability to borrow against a credit line up to a predetermined credit limit. Common examples include credit cards, retail cards, gas station cards, and home equity lines of credit (HELOCs).

• Installment credit. Installment credit offers a fixed payout that is disbursed upfront as a lump sum. Then, you’ll make smaller installment payments over multiple months until the principal balance, plus interest and fees, are repaid. Auto loans, student loans, and home loans are examples of installment debt.

• Open credit. With open credit, the full payment is due each month or statement cycle. This type of credit account is typically seen through service providers, like for utilities or your cell phone.

Examples of Credit Score Ranges

Scoring models might have different score ratings and ranges. Below is an example of a basic FICO score range:

• Excellent: 800-850

• Very Good: 740-799

• Good: 670-739

• Fiar: 580-669

• Poor: 300-579

You may be curious about your starting credit score. It’s not typically 300, the lowest possible score. Rather, once you have several months of credit history, if it’s responsible, you might be in, say, the good range.

Credit Score Tips

Before you shop around for an auto loan, knowing where your credit stands and addressing any areas to positively impact your score can help you secure a more favorable financing offer.

• Credit score monitoring can help you track new credit inquiries, account openings, and flag issues, like fraudulent activity. This in turn can protect your score.

• Tapping into ways to check credit score without paying might make it easier to stay on top of your credit health.

• Learning lower credit card utilization can build your credit score in a meaningful way.

Recommended: Refinancing a Car Loan: What to Consider

The Takeaway

An auto loan calculator can help inform your search for financing that aligns your budget and long-term financial goals. An important step in getting favorable loan terms can be maintaining or building your credit score. Tracking and managing your money can help you in that pursuit.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights—all at no cost.

See exactly how your money comes and goes at a glance.

Learn more

FAQ