Car Loan Calculator
Free car loan calculator. Enter vehicle price, down payment, trade-in value, interest rate, and loan term to calculate your monthly auto payment, total interest paid, and total cost.
Car Loan Calculator
Enter the vehicle price, down payment, trade-in value, interest rate, and loan term to calculate your monthly auto payment, total interest paid, and full amortization schedule.
How It Works
Your monthly payment is calculated using the standard loan amortization formula. The amount financed is the vehicle price minus your down payment and trade-in value, plus any applicable sales tax.
Amount Financed = Price − Down Payment − Trade-In + Sales Tax
M = P × r(1+r)n / [(1+r)n − 1]
M = monthly payment
P = principal (amount financed)
r = monthly interest rate (APR ÷ 12)
n = total number of monthly payments
Sales tax is applied to the taxable amount (vehicle price minus trade-in value). The resulting tax is added to the amount financed before computing your monthly payment.
Auto Loan Rates Guide
New car loans: Typically carry the lowest rates. As of 2024–2025, average APRs for new vehicles range from about 5% for borrowers with excellent credit (750+) to 10%+ for fair credit.
Used car loans: Usually run 1–3% higher than new car rates due to greater depreciation risk for lenders. Expect rates roughly in the 7–12% APR range for most credit profiles.
Refinancing: If your credit score has improved or rates have dropped since you got your original loan, refinancing can meaningfully lower your monthly payment and total interest paid.
What Affects Your Rate
Credit score: The single biggest factor. Borrowers with scores above 720 typically qualify for the best rates; those below 620 may face rates two to three times higher.
Loan term: Shorter terms often come with lower interest rates in addition to lower total interest, because lenders bear less risk over a shorter period.
New vs. used: New vehicles almost always qualify for better rates than used ones. Manufacturer-subsidized 0% APR offers exist for new cars but require excellent credit.
Down payment: A larger down payment lowers your loan-to-value ratio, reducing lender risk and sometimes unlocking a better rate — as well as cutting total interest owed.
Recommended Resources
See rates from multiple lenders in 2 minutes — no impact to your credit score. Compare APRs, monthly payments, and terms side by side to find the best personal loan for your situation.
Personal loans from $5K to $100K with no origination fees, no prepayment penalties, and rates as low as 8.99% APR. Unemployment protection included if you lose your job.
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Understanding Auto Loans
An auto loan is an installment loan used to purchase a vehicle, with the car serving as collateral. Like other loans, your monthly payment is calculated using the amortization formula, based on the loan amount, interest rate, and term length.
For a $30,000 car with $5,000 down and a $25,000 loan at 6% for 60 months: Monthly payment = $483. Total paid = $28,999. Total interest = $3,999. Shorter terms mean higher monthly payments but less total interest — 48 months at the same rate would be $587/month but only $3,153 in interest.
Auto loan rates depend on credit score, loan term, new vs used, and lender. Excellent credit (740+) might get 4-5% for a new car, while subprime borrowers (below 620) might pay 15% or more. Used car rates are typically 0.5-1% higher than new car rates for the same credit profile.
Car Depreciation and Loan Strategy
Cars depreciate rapidly, losing 20-30% of value in the first year alone. This creates a risk of being "underwater" — owing more than the car is worth. To avoid this, make a substantial down payment (20% recommended) and choose a shorter loan term.
A $30,000 car is worth roughly $21,000-$24,000 after one year. If you put only $3,000 down and financed $27,000 for 72 months, you might owe $24,000 after one year while the car is worth only $22,000. If the car is totaled, you'd owe more than insurance pays — this is where gap insurance becomes important.
Avoid terms longer than 60 months if possible. While 72 and 84-month loans have lower payments, you pay significantly more interest and remain underwater longer. A $25,000 loan at 6%: 48-month term costs $3,153 in interest; 72-month term costs $4,771. The "savings" from lower payments costs you $1,618.
Getting the Best Auto Loan Deal
Shop for financing before visiting the dealership. Get pre-approved from your bank, credit union, or online lender so you know what rate you qualify for. Credit unions often offer the best rates. This gives you negotiating leverage and protects against dealer markup.
Focus on the total price and interest rate, not monthly payment. Dealers can manipulate monthly payments by extending terms, hiding fees, or adjusting trade-in values. Know the car's fair market value (check Kelley Blue Book or NADA guides) and negotiate the purchase price separately from financing.
Consider the full cost of ownership: insurance (get quotes before buying), maintenance, fuel efficiency, and expected repair costs. A cheaper car with expensive maintenance or poor reliability might cost more long-term. Use this calculator to model different scenarios and understand what you can truly afford.
Auto Loan Payment Comparison ($25,000 Loan)
| Term | Rate | Monthly Payment | Total Interest |
|---|---|---|---|
| 36 months | 5.5% | $754 | $2,143 |
| 48 months | 5.75% | $582 | $2,938 |
| 60 months | 6.0% | $483 | $3,999 |
| 72 months | 6.5% | $424 | $5,509 |
| 84 months | 7.0% | $383 | $7,168 |
Interest Rates by Credit Score (New Car, 60mo)
| Credit Score | Credit Tier | Typical APR |
|---|---|---|
| 750+ | Excellent | 4.0-5.5% |
| 700-749 | Good | 5.5-7.5% |
| 650-699 | Fair | 7.5-11% |
| 600-649 | Subprime | 11-16% |
| Below 600 | Deep Subprime | 16-25%+ |
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