Updated: December 2, 2025
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Estimate the monthly payment for your car loan.
Updated: Dec 10, 2025
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An auto loan affects your budget for years. Monthly payments are only the start: you'll pay interest, fees and potentially thousands more than the sticker price.
Our calculator breaks down these costs in seconds. Enter your loan details, and you'll see exactly what you're paying each month and over the life of the loan.
Input the total you're borrowing. This number shapes everything else.
Pick your repayment timeline. A 60-month loan means lower monthly payments but higher total interest. A 36-month loan costs more each month but saves you money overall.
Enter your lender's APR. Don't have a rate yet? Use the average for your credit score as a starting point. A difference of just 1% can add hundreds to your total cost.
Add what you're paying upfront. Most experts recommend 20% down for new cars, 10% for used vehicles. More money down means less borrowed and less interest paid.
The calculator instantly shows:
Monthly payment: Your regular payment amount for the loan term.
Total interest paid: The extra money you'll pay beyond the car's price—this reveals the true cost of borrowing.
Total loan cost: Your complete financial obligation, including principal, interest and fees.
An auto loan calculator helps you understand what your loan will actually cost. Our tool shows you more than just monthly payments:
An auto loan calculator lets you enter different loan terms and interest rates to compare several offers side by side. This helps you see which loan option is the most affordable over time.
See how different loan terms affect your payments. For instance, shorter terms increase monthly payments but save money on interest over time. This helps you choose a term that fits your budget and financial goals.
Experiment with different variables like down payments and see how each change affects your monthly payment and total loan cost.
An auto loan calculator can help you plan your finances over the long term. Knowing the total cost of your loan and how it fits into your budget allows you to make smarter choices about future expenses and financial goals.
Based on Federal Reserve data, as of August 2023, the average interest rate for auto loans in the U.S. is 7.88% for a 60-month term and 8.12% for a 72-month term. You can use these average rates as a guide to see if you’re getting a fair deal or if there’s still room to negotiate.
Your credit score plays the biggest role in securing a good auto loan rate. Loan duration, down payment and vehicle type also matter. Lenders offer better rates for new cars than used ones.
Lower car payments free up money in your budget, which helps when you're managing multiple bills. You can reduce your monthly payment through refinancing, extending your loan term or making a larger down payment.
Refinancing replaces your current loan with a new one at a lower interest rate. You'll get better rates if your credit score has improved since you bought your car. Check for prepayment penalties on your current loan and origination fees on the new one before refinancing.
Extending your loan term spreads out payments, lowering your monthly amount. However, you'll pay more in total interest with this approach. It's a trade-off that could make sense if you need immediate budget relief but understand the long-term implications.
If you receive extra money, like a tax refund or bonus, consider making a large payment toward your loan principal. This will not only reduce the amount you owe but could also allow you to renegotiate for lower monthly payments. Just check with your lender first to ensure there are no prepayment penalties.
Driving a luxury model with expensive payments? Trade it for something cheaper. Your monthly payment drops immediately, and you might eliminate your loan entirely if the trade-in value covers the new car's cost.
Call your lender and ask for better terms. This works especially well if you've paid on time or if rates have dropped since you borrowed. Bring proof of your payment history and current market rates. Many lenders will negotiate rather than risk losing you to refinancing.
We answered some frequently asked questions about auto loans to help you gain valuable insight and make an informed decision.
An auto loan is an installment loan used to purchase a vehicle. You borrow money from a lender and repay it with interest over a set period. The loan is secured by the vehicle itself, meaning the lender can repossess the car if you fail to make payments.
A down payment is the cash you pay upfront when buying a car, which lowers the amount you borrow. Most experts recommend putting down 20% for new cars and 10% for used cars. Larger down payments mean lower monthly payments and better interest rates.
Auto loan interest rates are expressed as APR (annual percentage rate). Your rate depends on your credit score, loan term, vehicle type and down payment.
Your loan term is how long you take to repay the loan, which affects your monthly payment and total interest. Shorter terms (36 or 48 months) offer lower interest rates but higher monthly payments.
Longer terms (60 or 72 months) reduce your monthly payment but cost more in interest overall. Choose a term you can afford without straining your budget.
Monthly car payments are determined by dividing the total loan and interest amount by the loan term. For instance, the total interest for a $30,000, 72-month loan at 6% is $5,797. So the monthly payment would be $497.18 (($30,000 + $5,797) ÷ 72 = $497.18).
Yes, but expect higher rates and stricter terms. Some lenders work specifically with bad credit borrowers. You'll pay more, sometimes double the interest rate of borrowers with good credit. If you can wait, spend a few months improving your score. Even a 50-point increase can save you thousands over the loan term.
About Christopher Boston
Christopher (Croix) Boston was the Head of Loans content at MoneyGeek, with over five years of experience researching higher education, mortgage and personal loans.
Boston has a bachelor's degree from the Seattle Pacific University. They pride themselves in using their skills and experience to create quality content that helps people save and spend efficiently.
The content on this page is accurate as of the posting/last updated date; however, some of the rates mentioned may have changed. We recommend visiting the lender's website for the most up-to-date information available.
Editorial Disclosure: Opinions, reviews, analyses and recommendations are the author’s alone and have not been reviewed, endorsed or approved by any bank, lender or other entity. Learn more about
our editorial policies and expert editorial team.
