Auto Loan Calculator

FINANCE & LOANS · FREE TOOL

Use this auto loan calculator to find your exact monthly car payment in seconds. Enter the vehicle price, down payment, trade-in value, and interest rate and get your full payment breakdown, total interest, and amortization schedule instantly. Works for new cars, used cars, and refinancing.

  • Covers new, used & refinanced vehicles
  • Includes sales tax, fees & trade-in value
  • Full amortization schedule included
  • No sign-up. No cost. Ever.
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Auto Loan Calculator

Find your exact car payment, total cost, and interest breakdown instantly.

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+ Include Fees & Other Costs

Results are estimates for educational purposes only. Actual loan terms, taxes, and fees vary by lender, state, and dealership. Always confirm with your lender before signing.

How to Use This Auto Loan Calculator

  1. Select your vehicle type: New Car, Used Car, or Refinance. Each mode pre-fills a typical APR for that category.
  2. Enter the vehicle price:  use the dealer’s asking price or your negotiated out-the-door price.
  3. Add your down payment: the higher your down payment, the lower your loan and monthly cost.
  4. Enter trade-in value: if you’re trading in a vehicle, its value reduces your loan amount.
  5. Set the interest rate (APR):  use your lender’s quoted rate, or the current averages below.
  6. Choose your loan term: 60 months is most common; shorter terms cost less in interest.
  7. Click “+ Include Fees”: to add sales tax, doc fees, title/registration, extended warranty, and rebates for a true out-the-door cost.
  8. Click “Calculate My Car Payment”:  results appear instantly.

Average Auto Loan Rates (2026)

Credit ScoreNew Car APRUsed Car APR
Excellent (750+)5.0% – 6.5%7.0% – 8.5%
Good (700–749)6.5% – 8.0%8.5% – 10.5%
Fair (650–699)8.0% – 12.0%11.0% – 15.0%
Poor (below 650)12.0% – 18.0%15.0% – 22.0%

Source: Experian State of Automotive Finance, 2025/2026. Rates vary by lender.

What Is an Auto Loan and How Is Your Payment Calculated?

An auto loan is a secured loan used to finance the purchase of a vehicle. The lender typically a bank, credit union, or dealership’s financing arm provides the money to buy the car, and the borrower repays the amount in monthly installments over an agreed-upon term, with interest.

Unlike a mortgage, auto loans are relatively short-term, typically running 24 to 84 months. The vehicle itself serves as collateral, which means the lender can repossess it if you stop making payments.
Your monthly auto loan payment is calculated using three variables:

  • Loan amount: the vehicle price plus any financed fees and taxes, minus your down payment and trade-in credit
  • Interest rate (APR): the annual percentage rate the lender charges for borrowing
  • Loan term: the number of months over which you’ll repay the loan

The formula is identical to a mortgage calculation: M = P × [r(1+r)^n] / [(1+r)^n – 1], where P is the loan amount, r is the monthly rate (APR ÷ 12), and n is the number of payments. Our calculator handles all of this automatically just enter your numbers and get your answer.

Auto Loan Stats

AVG New Car Price. U.S
$ 0 K
Most Used Auto Loan Term
0 Mos
Average New Car APR
0 %
Average New Car Payment
$ 0


*Based on Experian. Your number will vary.

Understanding Every Part of Your Auto Loan

Vehicle Price
The starting point of every auto loan calculation is the vehicle’s purchase price. For new cars, this is typically the MSRP (Manufacturer’s Suggested Retail Price) or your negotiated deal price. For used cars, it’s the seller’s asking price or your negotiated amount. Always negotiate the vehicle price separately from monthly payment discussions a dealer can make a bad deal look affordable by simply stretching the loan term.
A down payment is the cash you pay upfront, directly reducing your loan amount. Most financial advisors recommend at least 20% down on a new car and 10% on a used car. A larger down payment means a smaller loan, lower monthly payment, less interest paid over time, and a reduced risk of going “underwater” (owing more than the car is worth). If you can’t afford 20%, put down as much as possible without draining your emergency savings.
If you’re replacing a vehicle, its trade-in value acts like a down payment it reduces the amount you need to finance. Before visiting a dealership, research your car’s trade-in value using Kelley Blue Book (KBB) or Edmunds to know your baseline. Dealers often undervalue trade-ins, especially during negotiation. In most U.S. states, the trade-in value is also deducted from the taxable purchase price, saving you additional money on sales tax.
Your Annual Percentage Rate (APR) is the most impactful variable in your loan calculation after the vehicle price. Even a 2% difference in APR on a $35,000 loan over 60 months can mean over $2,000 in additional interest paid. Your APR is determined primarily by your credit score, loan term, vehicle age (used cars carry higher rates), and the lender. Always get pre-approved by your bank or credit union before visiting a dealership it gives you a benchmark and negotiating power.
Auto loan terms range from 24 to 84 months. While longer terms like 72 or 84 months produce lower monthly payments, they significantly increase total interest paid and put you at higher risk of negative equity. NerdWallet and most financial advisors recommend no longer than 60 months for new cars and 36 months for used cars. A shorter term costs more per month but saves substantially on total interest and builds equity in the vehicle faster.
The true cost of a vehicle includes more than the sticker price. Sales tax, which varies by state (0% in some states, up to 10%+ in others), is typically applied to the vehicle price. Dealer documentation fees average $300–$600 nationally. Title and registration fees vary by state. Extended warranties and add-ons are often pushed at signing. Our calculator lets you include all of these for a complete picture of what you’re actually financing.

New car manufacturers frequently offer cash rebates direct price reductions from the automaker to move inventory. These typically range from $500 to $5,000 or more, especially at model year-end or on slow-selling vehicles. Rebates reduce your vehicle price (and therefore your loan amount), but be aware that some zero-percent financing offers require you to forfeit the cash rebate. Our calculator lets you enter rebates directly so you can see their effect on your payment.

New Car vs. Used Car vs. Refinancing: What's Right for You?

 New CarUsed CarRefinance
Typical APR5% – 8%8% – 14%5% – 10%
Depreciation RiskHigh (loses 20% year 1)LowerN/A
Best ForReliability, warrantyBudget buyersLowering existing rate
Loan Terms Available24–84 months24–72 months24–72 months
Manufacturer RebatesOften availableRarelyNo
PMI / GAP InsuranceRecommendedOptionalOptional

When to choose a new car loan: You want the latest safety technology, a full factory warranty, and access to manufacturer financing incentives. New cars have higher purchase prices and rapid early depreciation but offer more predictable reliability and often better financing terms.

When to choose a used car loan: You want more vehicle for your money and are comfortable with higher interest rates. A well-researched certified pre-owned (CPO) vehicle can offer near-new reliability with a significantly lower purchase price and loan amount.

When to refinance: Your credit score has improved since your original loan, interest rates have dropped, or you took dealer financing and now want a better rate. Refinancing can reduce your monthly payment, lower your total interest, or both but avoid extending your loan term significantly, as this increases total cost even at a lower rate.

Auto Loan Calculator: Frequently Asked Questions

How do I calculate my monthly car payment?

Your monthly car payment is calculated using the loan amount, APR, and loan term. The formula is: M = P × [r(1+r)^n] / [(1+r)^n – 1], where P is the loan amount, r is the monthly interest rate (APR ÷ 12), and n is the total number of months. For example, a $30,000 loan at 7.5% APR for 60 months equals a monthly payment of approximately $601. Use the free calculator above to get your result instantly.

At 7.5% APR for 60 months, the monthly payment on a $30,000 loan is approximately $601. At 6% APR for 60 months it is approximately $580. For 72 months at 7.5% APR the payment drops to approximately $519 but total interest increases significantly.

At 7.5% APR for 60 months, the monthly payment on a $40,000 loan is approximately $801. At 7.5% for 72 months, it is approximately $693. For 48 months at 7.5%, the payment rises to approximately $968.

At 7.5% APR for 60 months, a $50,000 loan results in a monthly payment of approximately $1,001. At 72 months and 7.5% APR, the payment is approximately $866. Use the calculator above to adjust for your exact rate and term.

You can get an auto loan with almost any credit score, but your score heavily influences your interest rate. Borrowers with scores above 750 (super prime) typically receive the lowest APRs often 5%–6.5% on new cars. Scores of 700–749 (prime) generally qualify for 6.5%–8%. Scores of 650–699 (near prime) may see rates of 8%–12%. Subprime borrowers (below 650) often face rates of 12%–22% or higher, which can dramatically increase total loan cost.

A commonly cited rule is the 20/4/10 guideline: put at least 20% down, finance for no more than 4 years, and keep your total monthly car expenses (payment + insurance) below 10% of your gross monthly income. Another approach is to limit your total monthly car costs to 15%–20% of take-home pay. Use our calculator to test different vehicle prices and terms until your payment fits comfortably within your budget.

Yes, in most cases. A larger down payment reduces your loan amount, lowers your monthly payment, reduces total interest paid, and decreases the risk of being “underwater” (owing more than the car is worth). Cars depreciate rapidly — a new car can lose 20% of its value in the first year. Without a sufficient down payment, you can quickly owe more than the vehicle is worth, which creates problems if you need to sell or if the car is totaled.

In 2026, a good interest rate for a new car loan is generally below 6.5% for borrowers with excellent credit (750+ score). For used cars, a good rate is below 9%. Average rates across all credit tiers are approximately 7.5% for new cars and 11.5% for used cars. If you’re offered a rate above these averages, it’s worth checking with your bank or credit union before accepting dealer financing.

Getting pre-approved through your bank or credit union before visiting the dealership is almost always recommended. It gives you a known interest rate to compare against the dealer’s offer, prevents the dealer from marking up your rate (a common practice), and simplifies negotiation. Dealer financing can occasionally be competitive especially during promotional 0% APR offers but always compare both options and calculate the total cost of each before deciding.

A loan term is the number of months you have to repay the loan. Common terms are 24, 36, 48, 60, 72, and 84 months. Shorter terms mean higher monthly payments but less total interest and faster equity-building. Longer terms lower the monthly payment but increase total cost and risk of negative equity. Most financial advisors recommend no more than 60 months for a new car. In 2026, the average new car loan term is approximately 69 months longer than experts recommend.

Yes, and it can save you significant interest. Most auto loans in the U.S. do not carry prepayment penalties, though you should confirm this with your lender before signing. Making extra principal payments  even $50–$100 extra per month  can shorten your loan term and reduce total interest paid. Some lenders require you to specify that extra payments should be applied to principal, not to future payments.

You are “underwater” (also called negative equity) when you owe more on your auto loan than the vehicle is currently worth. This is common in the early years of a loan on a new car, since cars depreciate faster than most loan balances decrease especially with long loan terms and small down payments. Being underwater becomes a problem if you want to sell the car, trade it in, or if it’s totaled and your insurance payout is less than your remaining loan balance. GAP insurance covers the difference in that last scenario.

GAP (Guaranteed Asset Protection) insurance covers the difference between what you owe on your auto loan and the actual cash value of the vehicle if it’s totaled or stolen. Because new cars depreciate quickly, most lenders and financial advisors recommend GAP coverage for the first two to three years of a loan, especially with a down payment under 20% or a loan term over 60 months. It typically costs $200–$400 as a one-time purchase or $20–$40/year added to your auto insurance policy.

Refinancing an auto loan means replacing your current loan with a new one typically from a different lender at a lower interest rate, different term, or both. The process involves applying for a new loan, which is used to pay off your existing balance. Refinancing makes the most sense if your credit score has improved since your original loan, market interest rates have dropped, or you took high-rate dealer financing and now qualify for better terms. There are usually no closing costs for auto refinancing, making it a low-risk move if the rate improves.

Documentation fees (doc fees) are charged by dealerships to cover the administrative cost of preparing your paperwork. They range from about $100 in some states to $800+ in others. Some states cap doc fees by law; others do not. Doc fees are largely non-negotiable, but knowing the average in your state helps you spot inflated fees. Always ask for a breakdown of all fees before signing this is your right as a buyer.

Quick Answers: Auto Loan at a Glance

How do you calculate a monthly car payment?

Monthly car payment = Loan Amount × [r(1+r)^n] / [(1+r)^n – 1], where r = APR ÷ 12 and n = loan term in months. Example: $30,000 loan at 7.5% APR for 60 months = $601/month

What is the car payment on a $45,000 loan?

At 7.5% APR for 60 months: approximately $901/month. At 7.5% APR for 72 months: approximately $780/month.

What is the car payment on a $25,000 loan?

At 7.5% APR for 60 months: approximately $501/month. At 6% APR for 60 months: approximately $483/month. Total interest paid at 7.5%/60 months: approximately $5,060.

How much income do you need for a $40,000 car?

Using the 10% gross income rule for total monthly car expenses: if a $40,000 car costs approximately $700–$800/month (payment + insurance), you’d want a gross monthly income of at least $7,000–$8,000, or approximately $84,000–$96,000/year. Using the 15% take-home pay guideline, you’d want at least $4,700–$5,300 in monthly take-home pay.

What is the car payment on a $35,000 loan?

At 7.5% APR for 60 months: approximately $701/month. At 7.5% APR for 72 months: approximately $607/month. Total interest at 7.5%/60 months: approximately $7,080.

What credit score do I need for an auto loan?

You can get an auto loan with almost any credit score, but your score heavily influences your interest rate. Borrowers with scores above 750 (super prime) typically receive the lowest APRs — often 5%–6.5% on new cars. Scores of 700–749 (prime) generally qualify for 6.5%–8%. Scores of 650–699 (near prime) may see rates of 8%–12%. Subprime borrowers (below 650) often face rates of 12%–22% or higher, which can dramatically increase total loan cost.

TIPS TO SAVE MONEY ON YOUR AUTO LOAN

7 Ways to Pay Less on Your Next Car Loan

  1. Get pre-approved before you go to the dealership.
    Knowing your rate in advance prevents dealers from marking up your financing. Banks and credit unions typically offer better rates than dealer captive lenders. Apply to two or three lenders to compare offers  multiple loan inquiries within a 14–45 day window count as a single hard pull on your credit.
  2. Improve your credit score before applying.
    Even moving from 680 to 720 can save you 1–2% on your APR, which translates to hundreds or thousands of dollars over the loan term. Pay down credit card balances, correct any errors on your report, and avoid opening new accounts in the 90 days before applying for an auto loan.
  3. Make a larger down payment.
    Every dollar you put down is a dollar you don’t pay interest on. A 20% down payment on a new car significantly reduces your loan balance, monthly payment, and risk of negative equity  and often qualifies you for a better rate.
  4. Choose the shortest term you can afford.
    The difference in total interest between a 48-month and a 72-month loan at the same rate is significant. On a $35,000 loan at 7.5%, a 48-month term costs approximately $5,600 in total interest; a 72-month term costs approximately $8,500.
  5. Negotiate the vehicle price separately from the monthly payment.
    Dealers prefer to talk about monthly payments  it obscures the total cost. Always negotiate the out-the-door price first, then discuss financing. Agreeing on a $40,000 price at 7% for 60 months is a very different deal than agreeing to “$700/month for 72 months.”
  6. Watch out for add-ons at signing.
    Extended warranties, paint protection packages, tire and wheel coverage, and gap insurance are commonly pushed at the finance office often at inflated prices. Research each item beforehand, and buy gap insurance through your auto insurance provider if you need it (it’s usually cheaper than through the dealer).
  7. Refinance if your situation improves.
    If your credit score improves after your original loan or market rates drop, refinancing can save you real money. There are typically no prepayment penalties and no closing costs on auto refinancing, making it one of the easiest ways to reduce your borrowing cost.

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A Brief History of the Auto Loan in America

The auto loan as we know it was born in 1919, when General Motors created the General Motors Acceptance Corporation (GMAC)  one of the first dedicated vehicle financing companies in the world. Before GMAC, buying a car meant paying cash upfront, which put automobiles out of reach for most Americans.

GMAC’s installment plan was revolutionary. Buyers could put 35% down and pay the rest in monthly installments over 12 months. Within three years, more than half of all GM vehicles were being sold on credit. Ford, initially resistant to the idea, eventually followed suit and created its own financing arm.

By the 1950s and 1960s, auto financing had become standard across the industry. The post-war economic boom, the rise of suburbs, and the construction of the Interstate Highway System all supercharged vehicle demand and auto lending grew with it.

The 1970s and 1980s saw interest rates swing dramatically, with auto loan rates peaking above 17% during the Federal Reserve’s inflation-fighting campaign in the early 1980s. When rates fell, demand for auto loans surged again.

The modern auto lending market is dominated by four types of lenders: manufacturer captive finance companies (Ford Credit, Toyota Financial Services, etc.), commercial banks, credit unions, and online lenders. The rise of subprime auto lending in the 2010s drew scrutiny similar to the pre-2008 mortgage market, with concerns about loan terms extending beyond the useful life of vehicles.

Today, with the average new car price exceeding $48,000 and loan terms stretching to 84 months, understanding exactly what you’re committing to using a tool like our auto loan calculator  has never been more important.

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