🚗 Vehicle Loan Details
Enter your car price, down payment and loan terms
📊 Your Loan Results
📊 Loan Term Comparison
📅 Amortization Schedule
| Month | Payment | Principal | Interest | Balance |
|---|
How to Use the Auto Loan Calculator
Our free auto loan calculator helps you understand the true cost of financing a vehicle before you walk into a dealership. Enter the vehicle price, your down payment, trade-in value, interest rate and loan term to see your exact monthly payment and total cost.
Understanding Auto Loan Costs
- Vehicle Price — the negotiated purchase price of the car before tax and fees
- Down Payment — cash you pay upfront to reduce the loan amount
- Trade-In Value — the value of your current vehicle applied to the purchase
- APR — Annual Percentage Rate — the yearly interest cost of your loan
- Sales Tax — varies by state — typically 4-10% of the vehicle price
- Fees — dealer fees, registration, documentation — typically $300-$1,500
How to Get the Best Auto Loan Rate
- Check your credit score before applying — higher score means lower rate
- Get pre-approved from your bank or credit union before visiting a dealer
- Compare offers from multiple lenders — rates vary significantly
- Consider a shorter loan term — lower total interest even with higher payments
- Make a larger down payment — reduces loan amount and monthly payment
- Avoid dealer financing without comparing to outside offers first
Shorter vs Longer Loan Terms
A shorter loan term means higher monthly payments but significantly less total interest paid. A 36-month loan versus a 72-month loan on the same vehicle can save you thousands in interest. Use our term comparison above to see the exact difference for your specific loan amount and rate.
How to Get the Best Auto Loan Deal
Your monthly car payment depends on the vehicle price, down payment, loan term, interest rate and your credit score. Understanding all these factors helps you negotiate a better deal and avoid overpaying for your next vehicle.
Auto Loan Rates by Credit Score — 2024
| Credit Score | New Car Rate | Used Car Rate |
|---|---|---|
| 781-850 (Super Prime) | 5.2% | 7.1% |
| 661-780 (Prime) | 7.0% | 9.5% |
| 601-660 (Near Prime) | 9.7% | 13.7% |
| 300-600 (Subprime) | 12.8% | 18.9% |
A 36-month loan costs more per month but saves significantly on interest versus a 72-month loan. On a $30,000 car at 7% — the 36 month loan costs $16,700 in interest while the 72 month loan costs $6,900 more in total interest despite lower monthly payments!
Auto Loan Calculator — Complete Guide to Car Financing
An auto loan is a secured loan where the vehicle serves as collateral — meaning the lender can repossess it if you stop making payments. Understanding how auto loans work helps you negotiate better rates, choose the right term and calculate the true total cost of financing a vehicle. The monthly payment is just one number — the total interest paid over the loan term reveals the real cost of the purchase.
How Auto Loan Interest Is Calculated
Auto loans use simple interest calculated on the outstanding balance. Each month, interest = (Annual Rate ÷ 12) × Remaining Balance. Early payments have more interest and less principal. A $20,000 loan at 6% for 60 months has a monthly payment of $386.66. Month 1: interest = $100, principal = $286.66. Month 60: interest = $1.92, principal = $384.74. Total interest paid = $3,199. This is why making extra principal payments early saves the most interest — every dollar of principal eliminated today eliminates all future interest on that dollar. Use our amortization calculator to see the full payment schedule for any auto loan.
| Loan Amount | Rate | 48 mo Payment | 60 mo Payment | 72 mo Payment |
|---|---|---|---|---|
| $15,000 | 6% | $352 | $290 | $249 |
| $25,000 | 7% | $598 | $495 | $427 |
| $35,000 | 8% | $854 | $709 | $615 |
| $50,000 | 9% | $1,243 | $1,038 | $902 |
Credit Score and Auto Loan Rates — 2025 Rate Guide
Your credit score is the single biggest factor in determining your auto loan interest rate. The difference between excellent and poor credit can mean paying $5,000-$10,000 more in interest on the same car loan. Check your credit score before shopping for a car — if it is below 670, spending a few months improving it before applying can save significantly more than negotiating a lower car price.
| Credit Score | Rating | Avg New Car Rate | Avg Used Car Rate |
|---|---|---|---|
| 750+ | Excellent | 5–7% | 6–9% |
| 700–749 | Good | 7–9% | 9–12% |
| 600–699 | Fair | 10–15% | 13–18% |
| Below 600 | Poor | 15–25%+ | 18–25%+ |
Dealer Financing vs Bank Financing — Which Is Better?
Dealerships often offer convenient in-house financing but may mark up the interest rate above what the lender charges — typically 1-2% added as dealer profit on financing. Getting pre-approved by your bank or credit union before visiting a dealership gives you a benchmark rate and negotiating power. Credit unions typically offer the lowest auto loan rates due to their non-profit structure. Online lenders (LightStream, Carvana, Capital One Auto) provide competitive rates and quick approvals. Always get pre-approved before negotiating car price — once you commit to dealer financing before negotiating the price, the dealer has two profit levers instead of one. Use our lease calculator alongside this calculator for a complete picture. See our simple interest calculator for a related calculation.
New vs Used Car Loans — Key Differences
New car loans typically offer lower interest rates than used car loans — lenders consider new cars less risky collateral. However, new cars depreciate 15-25% in the first year, meaning you can be significantly underwater almost immediately. A slightly used car (1-3 years old) often provides 80-90% of the new car's reliability and features at 60-70% of the price, with slower depreciation going forward. Certified pre-owned (CPO) programmes from manufacturers offer warranty coverage that reduces the risk of used car ownership. For budgeting purposes, factor in total cost of ownership — insurance, maintenance and depreciation — not just the loan payment. Use our budget calculator to see how a car payment fits into your complete monthly financial picture.
How Much Car Can You Afford?
A commonly used rule is that total monthly car costs (payment + insurance + fuel + maintenance) should not exceed 15-20% of your monthly take-home pay. For someone taking home $4,000 per month, that means total car costs under $600-$800. Dave Ramsey's more conservative rule suggests keeping the total value of all vehicles to under half of annual income. These rules prevent cars — depreciating assets — from consuming income that could build wealth through savings and investments. Our calculator helps you find the loan amount that produces a monthly payment within your budget, so you can work backwards to the car price you should be shopping for.