Auto Loan Calculator — Monthly Car Payments
Estimate your monthly car payment, total interest, and see a full amortization schedule. Includes trade-in value, sales tax, and loan term comparison.
| Term | Monthly Payment | Total Interest | Total Cost |
|---|---|---|---|
| Enter vehicle details above to see comparison | |||
| Year | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| Enter details above — amortization schedule will appear here | ||||
What Is an Auto Loan?
An auto loan is a secured loan used to purchase a vehicle. The car itself acts as collateral — meaning if you default on payments, the lender can repossess it. Auto loans typically run 36 to 84 months, and interest rates depend on your credit score, loan term, and lender type.
The monthly payment formula is: M = P × [r(1+r)^n] / [(1+r)^n – 1], where P is the loan principal, r is the monthly interest rate (APR ÷ 12), and n is the number of monthly payments.
Auto Loan Rates by Credit Score (2026)
| Credit Score | Rating | New Car APR | Used Car APR |
|---|---|---|---|
| 720+ | Excellent | 5.0 – 6.5% | 6.5 – 8.0% |
| 660 – 719 | Good | 6.5 – 9.0% | 8.5 – 11.0% |
| 620 – 659 | Fair | 9.0 – 13.0% | 11.0 – 16.0% |
| 580 – 619 | Poor | 13.0 – 18.0% | 16.0 – 21.0% |
| Below 580 | Very Poor | 18.0%+ | 21.0%+ |
Buying a Car: Key Financial Strategies
Direct Lending vs Dealership Financing
Direct lending — from a bank, credit union, or online lender — gives you pre-approval and negotiating power before you enter the dealership. Dealership financing is convenient and sometimes offers manufacturer promotions (0% APR), but may carry higher rates for routine financing.
Always get pre-approved first, then compare with the dealer's offer. Even a 1% difference in APR on a $30,000 loan over 60 months saves over $900 in total interest.
Cash Back vs 0% APR: Which Wins?
Manufacturers often offer either a cash rebate OR special low-APR financing. The better option depends on your loan amount and alternative rate. Use the calculator above to test both — enter the vehicle price minus the rebate with your bank's APR, then compare against the 0% offer with full price.
Should You Pay Cash or Finance?
Paying cash eliminates interest entirely and simplifies ownership. However, if you can get a low APR (under 4%), financing may make sense if you can invest the cash elsewhere at a higher return. At 0% APR, financing is clearly beneficial. At higher rates (7%+), cash wins unless you have higher-interest debt to pay down first.