Auto Loan Calculator
Calculate monthly car loan payments for new and used vehicles. Compare financing options and understand the true cost of your car loan.
How Auto Loan Financing Works
When you finance a car, you borrow money from a lender to pay for the vehicle. You repay the loan with interest over a set period of time. Key factors that affect your monthly payment include the loan amount, interest rate, and loan term.
New Car vs Used Car
New cars typically have higher prices but lower interest rates. Used cars have lower prices but may have higher interest rates and shorter loan terms available. Use this calculator to compare both options side by side.
What Affects Your Auto Loan Rate?
- Credit score — Higher scores get lower rates
- Loan term — Longer terms = more total interest
- New vs used — New cars typically get better rates
- Down payment — Larger down payment = lower loan amount
Frequently Asked Questions
How is my auto loan monthly payment calculated?
Your monthly payment is based on the loan amount (vehicle price minus down payment), annual interest rate, and loan term (typically 36-84 months). Longer terms lower payments but increase total interest paid.
What credit score do I need for the best auto loan rates?
A credit score of 720+ typically qualifies for the best rates (as low as 5-7% APR for new cars). Scores of 660-719 may get 8-12%, while scores below 660 often see rates above 12% or may require a co-signer.
How much should I put down on a car?
A down payment of 10-20% of the vehicle's value is recommended. A larger down payment reduces the loan amount, lowers your monthly payment, and can help you qualify for better rates.
New car vs used car: which is better for financing?
New cars offer lower rates (often 0-5% promotional financing from dealers) but depreciate faster. Used cars (2-3 years old) offer better value, lower insurance costs, and similar reliability at a lower price point.
Should I get pre-approved before visiting a dealership?
Yes! Getting pre-approved by a bank or credit union before visiting dealerships gives you negotiating power, reveals your true budget, and often results in better rates than dealer financing.