🚗 Car Loan Calculator
Calculate your monthly car payment, total interest, and view a complete amortization schedule. Make smarter auto financing decisions!
Calculate your monthly car payment, total interest, and view a complete amortization schedule. Make smarter auto financing decisions!
| Month | Payment | Principal | Interest | Balance |
|---|
?? Remember to budget for insurance, fuel, and maintenance costs too!
| Term | Monthly Payment | Total Interest | Total Cost |
|---|
While longer terms have lower monthly payments, you pay significantly more in interest. Consider the shortest term you can comfortably afford.
A car loan is a type of installment loan where you borrow money to purchase a vehicle and pay it back over a set period with interest. Understanding the components helps you make better financing decisions.
| Credit Score | New Car APR | Used Car APR |
|---|---|---|
| 781-850 (Excellent) | 5.0% - 6.0% | 6.0% - 7.5% |
| 661-780 (Good) | 6.0% - 8.0% | 7.5% - 10.0% |
| 601-660 (Fair) | 8.0% - 12.0% | 10.0% - 15.0% |
| 501-600 (Poor) | 12.0% - 18.0% | 15.0% - 21.0% |
| 300-500 (Bad) | 18.0% - 25.0% | 20.0% - 30.0% |
Know your credit score before shopping. Even small improvements can significantly lower your rate. Consider delaying purchase to improve credit.
Get pre-approved from your bank or credit union before visiting dealers. This gives you negotiating power and a baseline rate to beat.
20% down is ideal. It reduces your loan amount, lowers monthly payments, and helps avoid being "underwater" on the loan.
Choose the shortest term you can afford. A 60-month loan costs much less in interest than 72 or 84 months.
Compare rates from banks, credit unions, and dealers. Multiple loan inquiries within 14 days count as one hard inquiry on your credit.
Check for prepayment penalties, gap insurance requirements, and hidden fees. Some loans charge extra for paying off early.
Your credit score is the single biggest factor in the interest rate you'll receive on an auto loan. These are average APRs from major lenders in 2026 × rates vary significantly by lender, loan term, and whether it's a new or used vehicle:
| Credit Score Range | Credit Tier | New Car APR (avg) | Used Car APR (avg) | Monthly Payment (per $10K, 60mo) |
|---|---|---|---|---|
| 720×850 | Super Prime | 5.4% | 7.1% | $191 |
| 690×719 | Prime | 7.3% | 9.6% | $199 |
| 660×689 | Near Prime | 9.8% | 13.4% | $212 |
| 580×659 | Subprime | 13.2% | 18.6% | $228 |
| Below 580 | Deep Subprime | 15.8%×21%+ | 21%×28%+ | $245×$280 |
| Loan Amount | At 5.4% APR | At 7.4% APR (+2%) | Extra Interest |
|---|---|---|---|
| $20,000 | $2,857 total interest | $3,956 total interest | +$1,099 |
| $35,000 | $5,000 total interest | $6,923 total interest | +$1,923 |
Auto-loan payments depend on price, down payment, rate and term. Three examples:
Financing $25,000 (after a $5,000 down payment) over 60 months at 7% APR.
Result: Monthly payment ≈ $495.03; total interest ≈ $4,702.
Financing the full $40,000 over 72 months at 8% APR.
Result: Monthly payment ≈ $701.33 — longer terms lower the payment but raise total interest to about $10,496.
A used-car loan of $18,000 over 48 months at 9% APR.
Result: Monthly payment ≈ $447.93.
You can get approved across a wide range, but the best rates usually need a score of 660+. Below that, expect higher rates — improving your score first can save thousands.
Get pre-approved by a bank or credit union first, then let the dealer try to beat it. Dealer financing is convenient but markups are common, so always compare the APR.
Loans of 72–84 months lower the payment but raise total interest and risk ‘negative equity’ (owing more than the car is worth). Aim for 60 months or less if you can.
About 20% down on a new car (10% on used) keeps you from going underwater and lowers your payment and interest. More down is better if it doesn't drain your emergency fund.
Quick unit conversions related to this calculator: