Car Loan Calculator – Calculate Auto Loan Payments
Plan your auto financing with confidence. Calculate your monthly car loan payment and total cost based on vehicle price, down payment, rate, and duration.
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Enter values and click Calculate to see results
Car loan rates depend on your credit score, loan term, down payment, and the vehicle itself. New cars typically get better rates than used. Shorter terms (36-48 months) have lower rates than 72-84 month loans.
Dealer financing can be convenient but isn't always the best deal. Credit unions often offer lower rates. Manufacturer incentives (0%, 1.9%, 2.9%) are great if you qualify – but sometimes cash rebates with bank financing save more overall.
Credit Score Impact on Auto Loan Rates
| Credit Score | Typical Rate (New) | Typical Rate (Used) |
|---|---|---|
| 780+ | 4-5% | 5-6% |
| 720-779 | 5-6% | 6-7% |
| 680-719 | 6-8% | 7-9% |
| 620-679 | 8-12% | 10-14% |
| Below 620 | 12%+ | 15%+ |
84-month (7-year) car loans are increasingly common. They make expensive cars "affordable" by spreading payments thin. But here's the catch: cars depreciate fast, and long loans often leave you upside down (owing more than the car's worth) for years.
Example: $35,000 Car at 6%
| Term | Monthly Payment | Total Interest | Upside Down Until |
|---|---|---|---|
| 36 months | $1,065 | $3,340 | ~6 months |
| 60 months | $677 | $5,620 | ~18 months |
| 72 months | $580 | $6,760 | ~30 months |
| 84 months | $511 | $7,924 | ~42 months |
The 84-month loan saves $69/month versus 60 months but costs $2,300 more in interest and keeps you upside down nearly 4 years. If you crash or the car dies, you still owe the full balance. Gap insurance helps but adds cost.
Get pre-approved first
Know your rate from a credit union or bank before visiting the dealer. This gives you negotiating power and a baseline to compare dealer financing.
Negotiate price, not payment
Dealers can manipulate loan terms to hit a target payment while hiding a higher price. Negotiate the out-the-door price first, then discuss financing.
Put at least 20% down
Cars depreciate 20% in year one. A 20% down payment keeps you from going upside down. If you can't afford 20% down, you probably can't afford the car.
Skip the add-ons
Extended warranties, fabric protection, VIN etching – these are high-margin profit centers for dealers. Most aren't worth the cost. Buy warranty later if you really want it.
What's a good interest rate for a car loan?
With excellent credit (720+), 4-6% is typical for new cars, 5-7% for used. Average credit (680-719) sees 7-10%. Poor credit can mean 15%+. Credit unions often beat dealer rates. Manufacturer 0-2.9% deals are great if you qualify.
Should I lease or buy?
Lease if you want lower payments, drive under 12k miles/year, and like new cars every 3 years. Buy if you keep cars long-term, drive a lot, or want to build equity. Leasing long-term costs more than buying and keeping for 6+ years.
How much car can I afford?
The 20/4/10 rule: 20% down, 4-year loan max, total car costs (payment + insurance + gas) under 10% of gross income. On $5,000/month income, that's $500/month total, or ~$350 payment. Most people buy too much car.
Is it better to finance through the dealer or bank?
Compare both. Dealer financing can be convenient and sometimes has manufacturer subsidies (0-2.9%). Banks and credit unions often have better rates for average credit. Get pre-approved elsewhere, then let the dealer try to beat it.
Can I pay off my car loan early?
Most car loans have no prepayment penalty. Paying extra goes directly to principal, reducing total interest. Some lenders apply extra payments to future months by default – specify "apply to principal" in writing.
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