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Auto Loan Calculator

Calculate your monthly car payment and total cost of financing

Results are estimates for informational purposes only — not professional financial, medical, or legal advice. See how we build and verify our calculators.

Frequently Asked Questions

What is a good car loan interest rate?

As of 2025, excellent credit (720+) typically qualifies for 5–7% APR on new cars. Average credit (660–720) sees 7–10%. Below 660 may face 10–20%+. Credit unions often offer lower rates than dealerships.

How much car can I afford?

The 20/4/10 rule: put 20% down, finance for no more than 4 years, and keep total vehicle costs (payment + insurance) under 10% of monthly gross income. For a $5,000/mo income, total auto costs should be under $500/mo.

Should I choose a shorter or longer loan term?

Shorter terms (36–48 months) save significant interest but have higher payments. Longer terms (72–84 months) lower payments but cost more overall and risk being underwater (owing more than the car is worth).

What is a trade-in and how does it help?

A trade-in is your old vehicle's value applied to the new purchase. It reduces the loan amount needed and can save on sales tax in many states (you pay tax only on the price difference, not the full price).

Is 0% financing really free?

0% APR promotions from dealers often come with a catch: you may give up a cash rebate worth more than the interest saved, or need excellent credit (750+) to qualify. Always compare 0% financing vs. taking a rebate and getting a low-rate loan.

Loan vs Lease: Which Is Better?

Buy (Loan)
✓ Build equity, no mileage limits, eventually payment-free
✗ Higher monthly payment, responsible for all repairs
Lease
✓ Lower monthly payment, always drive a new car, covered by warranty
✗ No equity, mileage limits (~12k/yr), fees for wear and tear

Tips to Get a Lower Rate

Check your credit score before shopping — above 720 gets the best rates
Get pre-approved by your bank or credit union first
Negotiate the car price separately from financing
Avoid dealer add-ons (GAP insurance, extended warranties) rolled into the loan
Make a larger down payment to reduce principal and improve loan-to-value ratio
Consider a shorter term — lenders offer lower rates for 36 vs. 72-month loans