Car Loan Calculator
Calculate monthly car payments, total interest, and auto financing costs with trade-in and taxes
Car Loan Calculator
Calculate your monthly car payment
Vehicle Details
Your Results
Enter your vehicle price, loan term, and interest rate to see your monthly payment calculation.
Understanding Car Loan Calculations
Loan Amount
The total amount borrowed, calculated as vehicle price minus down payment and trade-in value, plus any taxes and fees. This is what you'll pay interest on.
Interest Rate (APR)
Annual percentage rate charged by the lender, which varies based on credit score (3-20%), loan term, and current market conditions. New cars typically get better rates than used.
Loan Term
The length of time to repay the loan, typically 36 to 84 months. Longer terms mean lower monthly payments but significantly more total interest paid.
Smart Car Buying Tips:
Before You Shop:
- ✓Check your credit score and get pre-approved
- ✓Research car values on KBB, Edmunds, or NADA
- ✓Calculate total budget including insurance and maintenance
- ✓Get trade-in value estimate for your current car
At the Dealership:
- •Negotiate car price separately from financing
- •Compare dealer financing with your pre-approval
- •Avoid extended warranties and unnecessary add-ons
- •Focus on total price, not just monthly payment
New vs Used Car Loan Comparison
| Factor | New Car | Used Car (2-3 years) |
|---|---|---|
| Purchase Price | $35,000 | $22,000 |
| Interest Rate | 5.5% | 7.5% |
| Loan Term | 60 months | 48 months |
| Monthly Payment (0% down) | $668 | $537 |
| Total Interest | $5,080 | $3,776 |
| Warranty | Full manufacturer | Limited/expired |
| Total Savings | - | Save $14,304 |
*Example comparison. Actual prices and rates vary by vehicle, credit score, and market conditions.
Car Loan Term Impact ($25,000 loan at 7% APR)
36 Months
$771
Monthly Payment
Total Interest: $2,756
48 Months
$598
Monthly Payment
Total Interest: $3,704
60 Months
$495
Monthly Payment
Total Interest: $4,700
72 Months
$426
Monthly Payment
Total Interest: $5,872
Shorter terms save money on interest but increase monthly payments. 60 months is often the sweet spot.
Car Loan Calculator FAQ
What credit score do I need for a car loan?
You can get a car loan with a credit score as low as 500, but scores above 661 qualify for the best rates. Excellent credit (781+) can get rates as low as 3-5%, while poor credit (300-500) may face rates of 15-20%. Most people qualify with scores above 600.
Should I buy a new or used car?
New cars offer warranties, latest safety features, and no prior damage, but depreciate 20-30% in the first year. Used cars cost 20-60% less but may need repairs. Certified pre-owned vehicles offer a middle ground with limited warranties.
How much should I put down on a car?
Aim for 20% down on a new car and 10% on a used car to avoid being underwater on the loan. For a $30,000 new car, put down $6,000. This reduces your monthly payment and total interest paid over the loan term.
What's the best car loan term length?
36-60 months is typically best for balancing monthly payments and total interest. Longer terms (72-84 months) lower payments but cost more in interest and increase the risk of being underwater on the loan.
Should I get financing from the dealer or my bank?
Compare both options. Banks and credit unions often offer better rates, while dealers may have promotional rates or convenience. Get pre-approved from your bank for negotiating power, then compare with dealer financing.
How much car payment can I afford?
Keep total vehicle costs (payment, insurance, gas, maintenance) under 20% of take-home pay. For $5,000 monthly income, spend no more than $1,000 on all car expenses, with payments around $400-600.
Is it worth trading in my car vs selling privately?
Private sales typically get 15-25% more money but require time and effort. Trade-ins are convenient and reduce sales tax on your new purchase. Calculate the tax savings when comparing options.
Can I negotiate car loan rates?
Yes! Shop around with multiple lenders and use competing offers to negotiate. Credit unions often have the best rates. Even a 1% rate reduction can save thousands over the loan term.
What happens if I'm upside down on my car loan?
Being underwater (owing more than the car's worth) is common early in the loan. Make extra principal payments, avoid extending the loan term, and consider gap insurance to protect against total loss.