Car Loan Calculator: Smart Auto Financing Made Simple
Calculate monthly payments, compare financing options, and understand the total cost of your auto loan.
Car Loan Calculator
Car Details
Loan Details
Fees & Extras
How Car Loans Work
Car loan = you borrow money to buy a car, pay it back with interest over time (usually 36-72 months). Car is collateral—if you default, lender takes it. Your credit score determines your interest rate. Higher score = lower rate. Calculate your monthly payment, total interest, and see how much you can afford.
Tips: Shop around for rates. Put down 20% if you can (avoids being underwater). Shorter loan = higher monthly payment but way less total interest. Avoid dealer add-ons unless you actually need them.
Frequently Asked Questions
Should I pay off my car loan early?
Depends. If your rate is high (>5%), yes—saves interest. If low (<3%), better to invest extra money elsewhere. Check for prepayment penalties first. Prioritize high-interest debt (credit cards) before low-interest car loans.
Pre-qualified vs. pre-approved?
Pre-qualified = soft estimate, no credit check. Pre-approved = hard credit check, specific offer with approved amount/rate. Pre-approval has more weight at dealerships.
Is 0% financing always best?
Not always. 0% requires excellent credit and you often lose cash rebates. Sometimes rebate + low rate elsewhere = better total cost. 0% offers also limit you to specific models/terms.
How much car can I afford?
20/4/10 rule: 20% down, 4 years or less, payments under 10% of monthly income. Keep total transportation costs (payment + insurance + gas + maintenance) under 15-20% of take-home pay.
Do I need GAP insurance?
Consider it if: down payment <20%, loan >60 months, car depreciates fast, or you're leasing. Shop around—dealerships charge way more than insurance companies or credit unions.
How does credit score affect my rate?
Huge impact. 750+ = 3-5% rate. Below 600 = 15-20%+. A 1% difference on a $25k loan = $1,300+ extra interest over 5 years. Check credit 3-6 months before shopping.
What's the best loan term?
48 months or less. Balances affordability with low total interest. 60-84 months = lower monthly payment but way more interest and higher risk of being underwater. 36 months = least interest but highest monthly payment.
Dealership or bank financing?
Get pre-approved from bank/credit union first (usually better rates), then compare with dealer offers. Dealers offer convenience and sometimes special manufacturer rates. Having outside approval gives you leverage.
What fees should I expect?
Origination (0.5-2%), documentation ($100-500), title/registration, maybe prepayment penalties. Credit unions often have no fees. Ask for complete breakdown before signing.
Can I refinance later?
Yes. Makes sense if rates drop, your credit improves, or you want different term. Best within first 1-3 years when you still owe a lot. Don't refinance if underwater (owe more than car's worth).
Minimum down payment?
Some lenders offer 0% down, but experts recommend 20% for used, 10% for new. Larger down = lower payment, less interest, avoid being underwater.
How do I calculate total cost?
Monthly payment × # of months + down payment + fees. Example: $400/mo × 60 = $24k + $5k down + $500 fees = $29,500 total. Compare total cost, not just monthly payment.