Auto Loan Calculator
Calculate your monthly car payment, total interest, and payoff cost for a new or used vehicle loan.
What this calculator does
Calculates your monthly car payment, total interest paid, and total amount repaid over the life of a new or used auto loan, based on the vehicle price, down payment, interest rate, and loan term.
Who this is for
Anyone shopping for a new or used car who wants to know their real monthly payment before visiting a dealership, or comparing a pre-approved bank/credit union rate against dealer financing.
How this calculator works
Loan amount = vehicle price minus down payment. Monthly payment uses the standard amortization formula, spreading principal and interest across your loan term so each payment is the same size, with more going toward interest early on and more toward principal later.
Worked example
$30,000 vehicle, $3,000 down payment, 6.9% APR, 60-month term: loan amount = $27,000. Monthly payment ≈ $533. Total repaid over 5 years ≈ $32,002, meaning total interest ≈ $5,002 on top of the $27,000 borrowed.
2026 Average Auto Loan Rates by Credit Tier
| Credit Tier | New Car APR | Used Car APR |
|---|---|---|
| Excellent (750+) | ~4.5-6% | ~6.3-8% |
| Good (700-749) | ~6-8% | ~8-10% |
| Fair (650-699) | ~8-12% | ~10-14% |
| Poor (below 650) | ~14-16%+ | ~18-22%+ |
Used car loans consistently carry meaningfully higher rates than new car loans across every credit tier — roughly 4-5 percentage points higher on average, per Experian's Q1 2026 data (6.39% new vs. 11.43% used, averaged across all credit tiers). Credit unions typically offer rates 1-2 percentage points below banks and 2-4 points below dealer financing, so getting pre-approved before shopping is one of the highest-leverage things you can do.
Where your payment goes
Run the calculator above to see the principal vs. interest split.
Common mistakes
- Focusing only on the monthly payment. A longer term lowers your monthly payment but almost always increases total interest paid — always check the total repaid figure too.
- Not getting pre-approved before visiting the dealership. Without a baseline offer to compare against, you have no leverage against a dealer marking up your rate.
- Forgetting sales tax and fees aren't in the loan estimate. This calculator estimates the loan itself — actual out-the-door cost includes sales tax, registration, and any dealer fees layered on top.
- Assuming a small rate difference doesn't matter. On a typical $25,000, 5-year loan, each 1 percentage point of APR difference changes total interest by roughly $500-$1,000.
- Rolling negative equity from a trade-in into the new loan. This increases the loan amount beyond the new car's value, extending how long you're financially "underwater" on the vehicle.
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Frequently Asked Questions
What is the average auto loan interest rate in 2026?
Around 6.4-7.0% for new cars and 11.3-11.4% for used cars on average, per Experian's Q1 2026 data and Bankrate's ongoing surveys. Rates vary significantly by credit score, from about 4.5% (excellent credit, new) to 16%+ (poor credit, new), and higher still for used vehicles.
Should I get pre-approved before visiting a dealership?
Yes — getting pre-approved by a bank or credit union gives you a baseline rate to negotiate against. Dealer financing often marks up the rate they can actually get you by 1-3%, and having your own offer in hand is the main leverage against that markup.
Do credit unions really offer better auto loan rates than banks?
Generally yes — credit unions tend to offer rates roughly 1-2% lower than banks and 2-4% lower than typical dealer financing, though it's still worth comparing actual offers rather than assuming.
Is a longer loan term always a worse deal?
Not automatically worse, but almost always more expensive in total interest — a longer term lowers your monthly payment but extends how long you're paying interest, and increases the risk of being underwater (owing more than the car is worth) for longer.
How much does a 1% rate difference actually matter?
More than most people expect — on a $25,000, 5-year loan, each 1 percentage point of APR difference typically changes total interest paid by roughly $500-$1,000 over the life of the loan.