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Auto loan calculator
Estimate your monthly repayments and total interest.
Calculating your monthly auto loan payment can help you determine exactly how much car you can afford before you even set foot at the dealership. Our car loan calculator can both help you estimate your monthly payment and the total interest you’ll pay over your loan term.
How to use the loan calculator
To make the most out of our auto loan calculator, you’ll need to know your loan amount, term and potential interest rate. However, your monthly payments will also be affected by the sales tax in your state, your down payment, dealership fees, DMV fees and the trade-in value of your previous vehicle.
Current auto loan interest rates by credit score
| Credit score | Average new car rate | Average used car rate |
|---|---|---|
| Excellent (super prime): 781 to 850 | 2.51% | 3.84% |
| Very good (prime): 661 to 780 | 3.61% | 5.72% |
| Good (near prime): 601 to 660 | 6.51% | 10.13% |
| Fair (subprime): 501 to 600 | 10.36% | 16.4% |
| Poor (deep subprime): 300 to 500 | 14.01% | 20.24% |
Source: Experian’s State of the Automotive Finance Market Report — Q3 2020
How much are the payments on a car loan?
Your monthly payment depends on the total amount you borrow, your trade-in value, your loan term and your interest rate.
1. Determine your loan amount
Enter the amount you plan on financing into the auto loan calculator. To estimate how much you’ll need to finance, subtract your down payment and the current value of your trade-in from the advertised price of your car. Experts recommend a down payment of 15% to 20% of your loan amount, and you can shop Kelley Blue Book and Edmunds to see how much your trade-in is worth.
New cars have a higher purchase price, but you may be able to score a lower interest rate than you would with a used car. And lenders frequently allow you to wrap sales tax into your auto loan. Just keep in mind that this will increase your monthly payment amount — and may mean you pay more in interest.
2. Pick a loan term
Enter your preferred auto loan term in years. You can pick from 24- to 72-months when you apply for a car loan, although 84-month terms aren’t uncommon. The length of your loan will impact your monthly payments. The longer your term, the lower your monthly payments will be — but the more you’ll pay in interest. On the other hand, a shorter term means a higher monthly car payment but less paid in interest.
3. Get quotes from lenders
Once you know how much you need to borrow and how long you want to borrow for, you can apply for preapproval with a variety of lenders. This will allow you to preview potential interest rates without affecting your credit score, which in turn will help you get a better estimate of the monthly and total cost of your car.
Compare auto loans
Select your credit score and state from the table to see lenders you might qualify for.
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How do lenders determine my borrowing power?
Lenders consider your monthly living costs and weigh them against your monthly income to see if you can afford loan payments. However, it gets more involved when you factor in multiple incomes, credit card and other loan debts and financial dependents. And if this is your second vehicle, you may not qualify if you don’t have sufficient cash flow in your budget.
How can I increase my chances of approval?
If you want to qualify for a prime interest rate, you’ll need to demonstrate a strong ability to repay your loan. Here are a few tips:
- Spend less. Opting for a used car or a new car with a lower price tag will reduce the amount you need to finance. This means a lower monthly payment and may help you score a lower interest rate.
- Save for a larger down payment. Not only will a large down payment show you can handle your finances, it also helps you save on total vehicle costs.
- Pay down your debts. A lower debt-to-income ratio increases your cash flow and may improve your credit score — helping you qualify for lower rates on an auto loan.
- Add a cosigner. A cosigner can help increase your chances of qualify for an auto loan, especially if you have bad credit or insufficient income.
- Shop around. Don’t just rely on dealer financing. Get preapproved for a loan from multiple lenders to see what kind of auto loan rates you may qualify for.
Bottom line
Remember to take into account fees and sales tax when determining how much you can spend on a car. You can compare more auto loans to find the best lender to finance your next ride.
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