Car Loan Calculator
Quick Answer: A car loan calculator estimates your monthly car payment from the price, down payment, trade-in, interest rate, and loan term. On a $35,000 car with $5,000 down at 7.06% for 60 months, the payment is about $594 a month. Enter your own numbers below to get your exact payment, total interest, and payoff date.
Estimate Your Monthly Car Payment
Enter your numbers and the results update as you type. All math runs in your browser. Nothing is uploaded or saved.
Compare loan terms (same car, same rate)
| Term | Monthly Payment | Total Interest | Total of Payments |
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Shorter terms cost more per month but save thousands in interest. A 36 month loan on this car costs about half the interest of a 72 month loan.
Amortization schedule (every monthly payment)
Each row shows how your payment splits between interest and principal, and the balance left after that payment.
| Payment | Interest | Principal | Balance |
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Yearly summary
| Year | Interest Paid | Principal Paid | Ending Balance |
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How the Car Loan Calculator Works
A car loan calculator turns five numbers into a monthly payment: the vehicle price, your down payment, any trade-in value, the annual interest rate, and the loan term in months. It first works out how much you need to borrow, then applies the standard loan formula.
The amount financed is the price minus your down payment, minus your trade-in value, plus any amount you still owe on the trade-in, minus cash incentives. Roll sales tax and fees into the loan and those are added too. The formula is M = P x r(1+r)^n / ((1+r)^n - 1), where P is the amount financed, r is the monthly interest rate (the annual rate divided by 12), and n is the number of payments. At 0%, the payment is simply the amount financed divided by the number of months. Early payments are mostly interest, and as the balance falls more goes to principal. The amortization schedule shows this shift, which is why paying extra early saves the most interest.
How to Use the Car Loan Calculator
Start with the vehicle price. Use the negotiated price, not the sticker price, if you have already haggled with the dealer. Next, enter your down payment. The calculator defaults to $5,000 on a $35,000 car. Aim for 20% down on a new car or 10% on a used car.
If you are trading in a car, enter its value and the amount you still owe on it, if any. The calculator subtracts the trade-in value and adds back what you owe. Enter your interest rate next. The default is 7.06%, the average 60-month new car loan rate from Bankrate's November 4, 2026 survey. If a lender has quoted you a rate, type it in the override box. Pick a loan term from 24 to 84 months; 60 months is the most common choice. Open the advanced options to add sales tax and fees, and choose whether to roll them into the loan or pay them upfront. The results update as you type.
What the Numbers Mean
The monthly payment is the headline number: what leaves your bank account every month until the loan is paid off. A common guideline is to keep your car payment under 10% of your monthly take-home pay, and your total car costs (payment, insurance, and fuel) under 20%. The amount financed is the actual loan. Every dollar added to it costs you interest on top.
Total interest paid is the price of borrowing. On a $30,000 loan at 7.06% for 60 months, total interest is about $5,693. Total of all payments is your monthly payment times the number of months, about $35,693 here. Total cost of the car adds your down payment and any upfront tax and fees to that figure. It is the true all-in cost, and the number to compare when you shop between lenders. The payoff date tells you when the car is fully yours. The principal versus interest bar shows the split: about 84% of what you pay is principal and about 16% is interest.
Average Car Loan Rates by Credit Score
Your credit score is the biggest factor in the rate you get. Bankrate's November 4, 2026 survey put the average 60-month new car loan rate at 7.06%, the average 48-month new car rate at 6.90%, and the average 48-month used car rate at 7.47%. Experian's data for the second quarter of 2026 shows how wide the spread is. Prime borrowers paid an average of about 6.15% on new cars and 8.81% on used cars. Subprime borrowers (scores 501 to 600) paid 13.52% on new cars and 19.10% on used cars. Deep subprime borrowers (scores 300 to 500) paid 16.11% on new cars and 21.62% on used cars.
If your score is below 660, improving it before you buy can save thousands. Paying down card balances and making every payment on time for a few months can move your score into a cheaper band. Get preapproved before you visit the dealer, so you have a baseline rate to compare.
| Credit Band | Typical Score Range | Average New Car Rate | Average Used Car Rate |
|---|---|---|---|
| Super prime | 781 to 850 | About 5% or less | About 6% or less |
| Prime | 661 to 780 | About 6.15% | About 8.81% |
| Nonprime | 601 to 660 | About 9% to 11% | About 12% to 14% |
| Subprime | 501 to 600 | About 13.52% | About 19.10% |
| Deep subprime | 300 to 500 | About 16.11% | About 21.62% |
Shorter vs Longer Loan Terms
A longer term lowers the monthly payment but raises the total cost. Take a $30,000 loan at 7.06%. Over 36 months the payment is about $927 a month and total interest is about $3,377. Over 60 months the payment drops to about $595 a month but total interest rises to about $5,693. Over 84 months the payment is about $454 a month, but total interest climbs to about $8,108.
The 84 month loan looks affordable month to month, but it costs more than twice the interest of the 36 month loan, and it keeps you in debt for seven years. A new car loses 15% to 25% of its value in the first year alone, so a long loan often leaves you owing more than the car is worth for the first two years. That is called being underwater, or having negative equity. As a rule, keep the term to 60 months or less for a new car and 36 months or less for a used car.
Worked Example
Suppose you buy a $35,000 car, put $5,000 down, and take a 60 month loan at 7.06%. The amount financed is $30,000. The formula gives a monthly payment of about $595. The total of all payments is about $35,693, total interest is about $5,693, and adding your $5,000 down payment makes the all-in cost about $40,693.
Now suppose you put $7,000 down instead of $5,000. The amount financed drops to $28,000, the payment falls to about $555 a month, and total interest falls to about $5,314. That extra $2,000 upfront saves about $379 in interest and about $40 a month. Every dollar you borrow costs you interest, so a bigger down payment or a cheaper car always saves money twice, once on the payment and once on the interest.
Tips for a Lower Rate
Check your credit report before you shop. You can get free reports at AnnualCreditReport.com. Fix errors, pay down card balances, and avoid opening new credit accounts in the months before you buy. Even a small score improvement can drop your rate by a full point or more. A good target is the 20/4/10 rule: 20% down, no more than 4 years, and total car costs under 10% of gross monthly income.
Get preapproved from at least two lenders, ideally a bank and a credit union. Credit unions often beat bank rates by a point or more. Apply within a two-week window so the credit checks count as one inquiry. Watch for dealer markup: the dealer may add 1% to 2.5% above the lender's wholesale rate as profit. Ask what the buy rate is, and compare APRs, not just headline rates, because APR includes fees.
Frequently Asked Questions
How do I calculate my monthly car payment?
Use the loan formula M = P x r(1+r)^n / ((1+r)^n - 1), where P is the amount financed, r is the monthly interest rate (annual rate divided by 12), and n is the number of monthly payments. Our car loan calculator does this math for you. Enter the car price, down payment, interest rate, and loan term to get your monthly payment.
What is a good interest rate on a car loan in 2026?
Bankrate's November 4, 2026 survey put the average 60-month new car loan rate at 7.06% and the average 48-month new car loan rate at 6.90%. Borrowers with excellent credit can get much lower rates, while borrowers with poor credit may pay 13% or more. Your rate depends on your credit score, the loan term, and the lender.
How much should I put down on a car?
Aim for 20% down on a new car and 10% down on a used car. A bigger down payment lowers the amount you borrow, which lowers your monthly payment and the total interest you pay. It also protects you from owing more than the car is worth.
Is a 72 month car loan a bad idea?
A 72 month loan is not always bad, but it costs a lot more in interest and keeps you owing money long after the warranty ends. On a $30,000 loan at 7.06%, a 72 month term costs about $1,200 more in interest than a 60 month term. Shorter terms cost more per month but save money overall.
Does a trade-in lower my monthly payment?
Yes. Your trade-in value is subtracted from the price, so you borrow less and your monthly payment drops. If you still owe money on the car you are trading in, that payoff amount is added back to the new loan, which raises the payment. Enter both numbers in the calculator to see the net effect.
Should sales tax and fees be included in the loan?
You can roll sales tax, title, and registration fees into the loan, but then you pay interest on them too. Paying them upfront costs less over the life of the loan. Use the checkbox in the calculator to compare both ways.
What is the 20/4/10 rule for buying a car?
The 20/4/10 rule says to put at least 20% down, finance for no more than 4 years, and keep total car costs (payment, insurance, and fuel) under 10% of your gross monthly income. It is a conservative guideline that keeps a car loan from squeezing your budget.
Can I use this car loan calculator for a used car?
Yes. The math is the same for new and used cars. Used car loans usually carry a higher interest rate than new car loans. Bankrate's November 4, 2026 survey put the average 48-month used car loan rate at 7.47%, versus 6.90% for a new car. Enter the higher rate to get a realistic used car payment.
Reviewed by the AutoFixr Editorial Team. This calculator gives estimates for planning only and is not financial advice. Your actual rate, payment, and total cost depend on your credit, the lender, and your state. Always confirm the numbers with your lender before you sign.