Updated: October 21, 2025
Advertising & Editorial Disclosure
Estimate the monthly payment for your car loan.
Updated: Oct 31, 2025
$0/Month
$0
$0
$0
Why You Can Trust MoneyGeek
Although MoneyGeek partners with some of the companies we recommend, our content is written and reviewed by an independent team of writers, editors and licensed agents. Learn more about our editorial policies and expert editorial team.
Taking on an auto loan is a huge financial commitment that can impact your budget for years to come. Aside from the monthly payments, you also have to consider interest rates, loan terms and other factors that can affect your overall financial wellbeing.
MoneyGeek’s auto loan calculator can help you navigate this complex landscape. Here’s a step-by-step guide on how to use it:
Enter the total amount you want to borrow. This helps you understand your financial commitment.
Choose how long you'll repay the loan. Longer terms offer lower monthly payments but cost more in interest over time.
Enter the annual percentage rate (APR) your lender offered. If you don't have a specific rate yet, use the current average based on your credit score. Even a small rate difference can affect your total repayment amount.
Enter your planned down payment. Down payments vary, but experts recommend at least 20% for new cars and 10% for used cars.
After you enter this information, the calculator provides a detailed breakdown of your loan. Use this information to compare loan options and make a sound financial decision. Here's what you'll see:
You'll pay this amount each month over the loan term.
This shows the total interest you'll pay over the loan term. It reveals the cost of borrowing money beyond the car's price.
This combines your loan amount, interest and any fees. It shows your complete financial commitment and helps you evaluate whether the loan makes sense for your budget.
This table breaks down each payment into principal and interest. You'll see how much of each payment reduces your loan balance versus paying interest.
Using an auto loan calculator is a proactive approach to understanding the financial implications of your auto loan choices. Our tool offers a range of benefits that go beyond basic number-crunching:
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.
Lowering your car payments can provide much-needed financial relief, especially if you're juggling multiple financial commitments. Whether you're looking to ease your monthly budget or allocate funds to other priorities, there are several strategies you can employ to reduce your monthly car payments.
Refinancing means taking out a new loan to pay off your existing auto loan at a lower interest rate. This strategy is particularly effective if your credit score has improved since you first took out your car loan. Just make sure to read the fine print for any fees or penalties that might apply.
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.
If your current vehicle is a high-end model with hefty payments, consider trading it in for a more affordable option. This can lower your monthly payments and may eliminate the need for a loan if the trade-in value covers the cheaper car's cost.
Sometimes, a simple conversation with your lender can lead to reduced payments. If you've been a reliable borrower or if market interest rates have dropped, your lender might be willing to adjust your loan terms. Prepare for this discussion by gathering evidence of your good payment history or any changes in market rates.
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 upfront amount you pay when purchasing a car, which reduces what you need to borrow. The recommended down payment varies but is often around 20% for new cars and 10% for used cars. A larger down payment can result in lower monthly payments and a better interest rate.
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'll repay the loan. It affects both your monthly payment and total interest. Shorter loan terms, like 36 or 48 months, usually offer lower interest rates but come with higher monthly payments. Longer terms, such as 60 or 72 months, will lower your monthly payment at the cost of a higher interest rate. Choose a loan term based on your monthly budget and what you can comfortably afford.
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, you can get an auto loan with bad credit, but you'll pay higher interest rates and get less favorable terms. Some lenders also specialize in bad credit auto loans. However, it's advisable to improve your credit score if possible before applying for a loan to access better rates.
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.
