Auto Loan Calculator

Last Updated:

Calculate your exact monthly car payment including total interest and total cost of ownership.

$
$
$
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Monthly Car Payment

$0.00

Loan Amount$0
Total Interest$0
Total Cost$0
Payments60

📐 Formula

Monthly Payment = P × [r(1+r)^n] / [(1+r)^n - 1] where P = loan amount, r = monthly rate, n = number of payments

How to Use the Auto Loan Calculator

1

Enter the vehicle price

Input the total financed amount after down payment. Only enter the amount you're borrowing — for a $28,000 car with $3,000 down, enter $25,000.

2

Set the interest rate

Enter your APR. New car averages run 6–8%; used car averages 8–14% — depending heavily on credit score. Get pre-approved by your bank or credit union before visiting the dealership.

3

Choose the loan term

Select 24, 36, 48, 60, or 72 months. Shorter terms mean higher payments but substantially less total interest — compare this figure carefully across term lengths.

4

Review total interest paid

This is the true cost of borrowing, not the monthly payment. A 72-month loan can cost $2,500–$4,000 more in total interest than a 48-month on the same balance.

What Determines Your Auto Loan Rate?

Your APR is primarily driven by your credit score. Excellent credit (720+) typically qualifies for 5–7% on new cars. Good credit (670–719) sees 7–10%. Fair credit (580–669) faces 10–16%. Below 580 may see rates of 16–25% or require a co-signer. A 200-point score difference can mean $3,000–$5,000 extra in total interest on a $25,000 loan. Credit unions consistently offer 1–2% lower rates than dealership financing for identical borrower profiles — compare both before signing.

The Hidden Cost of Long Loan Terms

Dealers often advertise monthly payments rather than total cost, making longer terms appear attractive. A $28,000 car at 7% over 48 months costs $670/month and $4,160 total interest. The same car over 72 months costs $478/month but totals $6,416 in interest — $2,256 more. Additionally, 72-month loans leave you underwater (owing more than the car's value) for most of the term, creating financial risk if the vehicle is totalled or you need to sell. Most financial advisors recommend keeping auto loans to 48 months or fewer for used vehicles.

Sources & Methodology

Calculations are based on the most current publicly available data from authoritative government and industry sources:

Frequently Asked Questions

As of 2025, average new car loan rates range from 5–8% for buyers with good credit (700+). Rates above 10% are considered high. Your credit score, loan term, and lender all affect the rate you get.
A larger down payment reduces your loan amount, monthly payment, and total interest paid. Aim for at least 20% down on a new car and 10% on used. It also prevents being "underwater" on your loan.
Longer loan terms lower monthly payments but significantly increase total interest paid. A 72-month loan at 7% on $30,000 costs about $3,000 more in interest than a 48-month loan.
For borrowers with excellent credit (750+), new car loan rates average 5–7% APY in 2026. Good credit (700–749): 7–9%. Fair credit (650–699): 10–14%. Used car loans run 1–2% higher than new. Credit unions typically offer rates 1–2% below captive dealer financing — always compare before signing.
Putting 20% down on a new car (10% on used) prevents going underwater immediately, as new cars depreciate 15–20% in year one. A larger down payment lowers your monthly payment, reduces total interest, and improves approval odds. If you're keeping the car 5+ years, a smaller down payment is less critical.
The 20/4/10 rule: 20% down, finance for no more than 4 years, and keep total vehicle costs (payment + insurance) under 10% of gross monthly income. On $60,000/year income ($5,000/month): cap total car costs at $500/month. With insurance averaging $150–$200, that leaves $300–$350 for the loan payment.

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