Car Loan Calculator
Estimate your monthly payment, total interest, and full amortization schedule instantly.
| Month | Payment | Principal | Interest | Balance |
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Results are estimates for informational purposes only. Actual loan terms, rates, and payments may vary based on lender, credit approval, and local regulations. Consult a financial advisor or lender for exact figures.
How to Use This Car Loan Calculator
Estimate your monthly car payment before you step into any dealership. Enter the vehicle price, your down payment, the loan interest rate, and the loan term. Our calculator instantly shows your monthly payment, total interest you’ll pay, and the total cost of your vehicle.
What is a Good Interest Rate for a Car Loan in 2026?
| Credit Score Range | Credit Tier | Avg New Car Rate | Avg Used Car Rate |
|---|---|---|---|
| 720 – 850 | Super Prime | 5.2% | 7.1% |
| 660 – 719 | Prime | 6.8% | 9.4% |
| 620 – 659 | Near Prime | 9.7% | 13.6% |
| 580 – 619 | Subprime | 13.2% | 18.5% |
| Below 580 | Deep Subprime | 15.7% | 21.3% |
Your credit score is the single biggest factor in your auto loan rate. Improving your score even 20–30 points before applying can save you thousands over the life of the loan.
Car Loan Payment Examples (New Car)
| Vehicle Price | Down Payment | Rate | Term | Monthly Payment | Total Interest |
|---|---|---|---|---|---|
| $25,000 | $5,000 | 6% | 48 months | $470 | $2,560 |
| $35,000 | $5,000 | 7% | 60 months | $594 | $5,641 |
| $45,000 | $10,000 | 7.5% | 72 months | $613 | $9,172 |
| $55,000 | $10,000 | 8% | 72 months | $703 | $10,636 |
Should You Buy or Lease a Car?
| Factor | Buying (Loan) | Leasing |
|---|---|---|
| Monthly payment | Higher | Lower |
| Own the vehicle | Yes (after payoff) | No |
| Mileage limits | None | Yes (usually 12K–15K/yr) |
| Long-term cost | Lower (own asset) | Higher (perpetual payments) |
| Best for | Keep car long-term | New car every 2–3 years |
7 Tips to Get the Best Car Loan Rate
- Check your credit score first – Know where you stand before applying
- Get pre-approved before visiting the dealer – Dealers have less leverage when you have a competing offer
- Shop multiple lenders – Banks, credit unions, and online lenders all compete for your business
- Consider a credit union – Often offer 0.5%–2% lower rates than banks
- Make a larger down payment – Reduces loan amount and monthly payment
- Choose a shorter loan term – 36–48 months costs less in total interest than 72–84 months
- Never focus only on monthly payment – A lower payment over more years often costs far more total
The Hidden Cost of Long Loan Terms
| Loan Term | Monthly Payment | Total Interest | Total Paid |
|---|---|---|---|
| 36 months | $926 | $3,345 | $33,345 |
| 48 months | $718 | $4,434 | $34,434 |
| 60 months | $594 | $5,641 | $35,641 |
| 72 months | $513 | $6,962 | $36,962 |
| 84 months | $456 | $8,313 | $38,313 |
Going from 36 to 84 months saves $470/month but costs an extra $4,968 in interest. Plus, with an 84-month loan, you’ll likely be “underwater” (owing more than the car’s worth) for most of the loan term.
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Frequently Asked Questions
A commonly used rule is to spend no more than 15% of your monthly take-home pay on total car expenses (payment, insurance, fuel, maintenance). Another guideline is the 20/4/10 rule: 20% down payment, loan term of 4 years or less, and total car expenses under 10% of gross income. Use our calculator to check if a specific vehicle fits your budget.
Getting pre-approved through a bank or credit union before visiting the dealer is almost always better. Dealers mark up interest rates — often by 1%–3% — to earn a financing commission. With a bank offer in hand, you can either use your own financing or let the dealer beat it. Either way, you save money.
There is no minimum credit score required to get a car loan, as some lenders specialize in subprime auto financing. However, scores below 580 typically face very high interest rates (15%+). For the best rates, aim for a score of 720 or higher. If your score is low, consider waiting 6–12 months to build it before financing a vehicle.
Yes — a down payment of at least 20% on a new car and 10% on a used car is recommended. It reduces your loan amount, lowers monthly payments, reduces total interest paid, and helps prevent being “upside down” on the loan (owing more than the car’s value). Cars depreciate fast, especially new ones, so equity protection matters.
Most auto loans do not have prepayment penalties, meaning you can pay off your loan early without extra fees. Paying extra toward your principal each month reduces interest and shortens the loan term. Before making large extra payments, confirm your loan agreement has no prepayment clause. Most modern auto loans are penalty-free for early payoff.