Auto Loan Calculator
Calculate your car loan payment, total interest, and true cost of the vehicle. Compare different loan terms and interest rates to find the best financing option.
Vehicle Details
Loan Terms
Taxes & Fees
Monthly Payment
for 60 months at 6.5% APR
Cost Breakdown
| Vehicle Price | $35,000 |
| Sales Tax (7%) | $2,450 |
| Fees (Doc + Registration) | $800 |
| Less: Down Payment | -$5,000 |
| Less: Trade-In | -$0 |
| Amount Financed | $33,250 |
| Plus: Total Interest | $5,784 |
| Total Paid Over Loan | $39,034 |
Loan Term Comparison
| Term | Monthly | Total Interest | Total Paid |
|---|---|---|---|
| 36 months | $1,019 | $3,437 | $36,687 |
| 48 months | $789 | $4,599 | $37,849 |
| 60 months | $651 | $5,784 | $39,034 |
| 72 months | $559 | $6,993 | $40,243 |
| 84 months | $494 | $8,224 | $41,474 |
Interest Rate Impact
| Rate | Monthly | Total Interest |
|---|---|---|
| 4% | $612 | $3,491 |
| 5% | $627 | $4,398 |
| 6% | $643 | $5,319 |
| 7% | $658 | $6,253 |
| 8% | $674 | $7,201 |
| 10% | $706 | $9,138 |
| 12% | $740 | $11,128 |
Yearly Payment Summary
| Year | Principal | Interest | End Balance |
|---|---|---|---|
| Year 1 | $5,817 | $1,990 | $27,433 |
| Year 2 | $6,206 | $1,600 | $21,227 |
| Year 3 | $6,622 | $1,185 | $14,604 |
| Year 4 | $7,066 | $741 | $7,539 |
| Year 5 | $7,539 | $268 | $0 |
Auto Loan Tips
Shorter Terms Save Money
A 36-month loan costs much less in interest than a 72-month loan, even with the same rate. Longer terms mean more interest and risk of being "underwater" (owing more than the car is worth).
Get Pre-Approved
Get pre-approved from your bank or credit union before visiting dealers. This gives you negotiating power and a baseline rate to compare against dealer financing.
The 20/4/10 Rule
Put 20% down, finance for no more than 4 years, and keep total car costs (payment + insurance + gas) under 10% of gross income. This prevents being car-poor.
Frequently Asked Questions
What is a good interest rate for a car loan?
| Credit Score | New Car | Used Car |
|---|---|---|
| Excellent (750+) | 4-6% | 5-7% |
| Good (700-749) | 6-8% | 7-10% |
| Fair (650-699) | 9-13% | 11-15% |
| Poor (below 650) | 14%+ | 16%+ |
How long should my car loan be?
- Recommended: 48 months (4 years) or less
- Acceptable: 60 months (5 years)
- Avoid if possible: 72-84 months
Longer terms mean lower payments but much more interest. You also risk being "underwater" (owing more than the car is worth).
The 20/4/10 Rule
- 20%: Put at least 20% down
- 4: Finance for no more than 4 years
- 10%: Keep total car costs under 10% of gross income
Total car costs include payment, insurance, gas, and maintenance.
Tips for getting the best rate
- Check your credit score before shopping
- Get pre-approved from your bank or credit union
- Compare at least 3 lenders
- Negotiate the price before discussing financing
- Avoid dealer add-ons and extended warranties