What is a good interest rate for a car loan?

Good rates depend on credit score and loan term. Excellent credit (750+): 4-6%. Good credit (700-749): 6-9%. Fair credit (650-699): 9-13%. New cars typically have lower rates than used. Credit unions often offer better rates than dealers.

Should I choose a longer car loan term?

Longer terms (72-84 months) mean lower payments but much higher total interest and risk of being underwater. A $30,000 car at 7% costs $4,100 in interest over 4 years vs. $9,500 over 7 years. Keep terms at 60 months or less.

How much should my down payment be on a car?

Aim for 20% down on new cars, 10% on used. This prevents being upside-down (owing more than car value), lowers monthly payments, and may qualify you for better rates. A larger down payment is always beneficial.

Should I buy or lease a car?

Leasing offers lower payments and new cars every 2-3 years but you build no equity. Buying costs more monthly but you own an asset. Buy if you drive over 15,000 miles/year, plan to keep cars long-term, or want no payment eventually.

Is dealer financing or bank financing better?

Get pre-approved from your bank or credit union before visiting dealers. Dealer financing may beat your rate to make the sale, but knowing your rate gives negotiating power. Compare APR, not just monthly payments.

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Auto Loan Calculator

Calculate monthly car payments and total loan cost

0 calculations

Last verified: February 2026Accuracy tested

Calculated in your browser — we never store your dataIndustry-standard financial formulas

Vehicle Price

Down Payment

Trade-in Value

Interest Rate (APR)

Sales Tax (optional)

Loan Term (months)

Calculation Result

$586.98/month

Loan amount: ${amount}

Total cost: ${amount}

Total interest: ${amount}

{months} monthly payments

This calculator provides estimates for informational purposes only. Actual results may vary based on lender terms, fees, and tax situations. Consult a financial advisor for personalized advice.

Payment Breakdown

Loan Details

Vehicle Price$35,000.00

- Down Payment-$5,000.00

Amount Financed$30,000.00

Compare Loan Terms

Term	Monthly	Interest	Total
24 mo	$1,336.39	$2,073.30	$32,073.30
36 mo	$919.47	$3,100.92	$33,100.92
48 mo	$711.45	$4,149.53	$34,149.53
60 mo((selected))	$586.98	$5,219.07	$35,219.07
72 mo	$504.30	$6,309.45	$36,309.45
84 mo	$445.48	$7,420.58	$37,420.58

Sources & Methodology

Formula: M = P[r(1+r)ⁿ] / [(1+r)ⁿ-1]

Auto loan payment calculation

Source: Standard loan amortization formula

View full methodology & accuracy testing

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How to Use the Auto Loan Calculator

Estimate your monthly car payment before you visit the dealership. Enter the vehicle price, down payment, trade-in value, interest rate, and loan term to see your payment breakdown and total cost of financing.

Understanding Your Costs

Principal: The actual amount you're borrowing
Interest: The cost of borrowing money over time
Total Cost: Principal plus all interest paid

Tips for Getting the Best Deal

A larger down payment reduces your monthly payment and total interest
Shorter loan terms (36-48 months) save money on interest
Shop around for rates—credit unions often offer lower rates
Get pre-approved before visiting the dealership

Don't Forget Additional Costs

Your total cost of ownership includes insurance, maintenance, fuel, registration, and taxes. Factor these into your budget when determining how much car you can afford.

Frequently Asked Questions

Keep car expenses (payment, insurance, gas, maintenance) under 15-20% of take-home pay. A $50,000 salary with $3,500/month take-home can afford about $500-700/month total car expenses, suggesting a vehicle price of $20,000-$30,000.