Auto Loan Calculator

Calculate your monthly car payment, total interest, and loan cost. Compare different loan terms and see detailed amortization schedules.

Loan Details

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$5K $150K
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$0 $30K
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0% 25%
months
%

Payment Summary

Monthly Payment
$0
Loan Amount
$0
Total Interest
$0
Total Cost
$0
Payoff Date
-

Cost Breakdown

Principal
Interest
Principal: $0
Interest: $0

Additional Costs

Down Payment: $0

Compare Loan Terms

Amortization Schedule

Payment # Payment Date Payment Amount Principal Interest Balance

Typical Auto Loan APR Ranges (2024)

Excellent Credit (720-850)

4.5% - 6.5%

Best rates available. Consider negotiating for lower rates with multiple lenders.

Good Credit (690-719)

6.5% - 8.5%

Competitive rates. Shop around with credit unions and online lenders.

Fair Credit (630-689)

8.5% - 12.5%

Moderate rates. Consider improving credit score before applying.

Poor Credit (< 630)

12.5% - 20%+

Higher rates. Work on credit or consider a co-signer.

Auto Loan Tips & Strategies

Larger Down Payment

Put down at least 20% to reduce your loan amount, lower monthly payments, and potentially qualify for better interest rates. This also helps avoid being underwater on your loan.

Shop Around

Compare rates from banks, credit unions, and online lenders. Credit unions often offer lower rates. Get pre-approved before visiting dealerships to strengthen your negotiating position.

Shorter Term = Less Interest

While monthly payments are higher, shorter loan terms (36-48 months) save thousands in interest. Only extend to 72+ months if absolutely necessary.

Check Your Credit First

Review your credit report before applying. Even a small credit score improvement can significantly lower your rate. Fix any errors on your report.

New vs. Used

New cars have lower rates (0-5%) but higher prices. Used cars (2-3 years old) offer better value. Certified pre-owned vehicles often have manufacturer financing deals.

Negotiate Everything

Negotiate the vehicle price separately from financing. Don't focus only on monthly payments—dealers can extend terms to lower payments while increasing total cost.

Frequently Asked Questions

What is a good interest rate for an auto loan?

As of 2024, a good rate for excellent credit is 4-6% for new cars and 5-8% for used cars. Rates vary by credit score, loan term, vehicle age, and lender. Anything below 5% is considered excellent.

How much should I put down on a car?

Aim for at least 20% down for new cars and 10% for used cars. A larger down payment reduces your monthly payment, lowers interest costs, and helps prevent being underwater (owing more than the car's worth).

What's the best loan term for an auto loan?

36-48 months is ideal for minimizing interest. While 60-72 month loans lower monthly payments, they result in significantly more interest and keep you in debt longer. Avoid 84-96 month loans unless absolutely necessary.

Should I get pre-approved before shopping?

Yes! Pre-approval shows dealers you're a serious buyer, gives you leverage in negotiations, and lets you focus on the vehicle price rather than monthly payments. It also helps you understand your budget.

Can I pay off my auto loan early?

Most auto loans don't have prepayment penalties, allowing you to pay extra or pay off early without fees. Always verify with your lender. Paying extra toward principal saves significant interest.

How does my credit score affect my rate?

Credit score is the biggest factor. Excellent credit (720+) can get rates 5-10% lower than fair credit (630-689). A difference of just 2% on a $30,000 loan can save over $1,500 in interest.

What's better: dealer financing or bank loan?

Compare both. Dealers sometimes offer 0% promotional financing, but banks and credit unions often have better standard rates. Get quotes from multiple sources and negotiate.

Should I include taxes and fees in my loan?

While convenient, financing taxes and fees increases your loan amount and total interest paid. If possible, pay these costs upfront. Sales tax alone can add $2,000-$4,000 to your loan.