Auto Loan Calculator
Calculate your monthly car payment, total interest, and see the full amortization schedule.
Loan Details
Vehicle Type
Vehicle Price
$
Down Payment
$
Trade-in Value (Optional)
$
Interest Rate (APR)
%
Loan Term
▼
Payment Summary
$0
Monthly Payment
Loan Amount
$0
Total Interest
$0
Total Cost
$0
Payoff Date
–
Principal vs Interest
0%
Principal
Principal $0
Interest $0
Balance Over Time
Month 0
Month 30
Month 60
How Auto Loans Work
An auto loan is an installment loan secured by the vehicle you’re purchasing. Your monthly payment is calculated using the loan amount, interest rate, and term length.
M = P × [r(1+r)ⁿ] / [(1+r)ⁿ – 1]
Where M = monthly payment, P = principal (loan amount), r = monthly interest rate (APR ÷ 12), and n = number of monthly payments.
New vs Used Car Rates
Interest rates typically differ between new and used vehicles. Here’s a general comparison based on credit scores:
Credit Score
New Car
Used Car
750+
5.0-6.5%
6.5-8.0%
700-749
6.5-8.5%
8.0-10.5%
650-699
9.0-12.0%
11.0-14.0%
Below 650
12.0-18.0%
15.0-21.0%
Tips to Get the Best Rate
- Check your credit first: Know your score before shopping. Dispute any errors to potentially improve your rate.
- Get pre-approved: Shop rates from banks, credit unions, and online lenders before visiting the dealer.
- Make a larger down payment: 20% down can help you avoid being “underwater” on your loan.
- Choose a shorter term: 48-60 months typically offers better rates than 72-84 month loans.
- Consider the total cost: A lower monthly payment with a longer term often means paying more in total interest.
Watch Out For
- Dealer markups: Dealers may mark up the rate by 1-2%. Always compare with outside financing.
- Extended warranties: Often rolled into the loan, adding to your total cost and interest paid.
- Gap insurance: Consider if your loan amount exceeds the car’s value, but shop around for better rates.
- Negative equity: Trading in a car you still owe money on can roll that debt into your new loan.
- Prepayment penalties: Some lenders charge fees for paying off early. Read the fine print.