Skip to Main Content

Auto Loan Calculator

Mar 03, 2026

On This Page

How to use this calculator

Bankrate's auto loan calculator can help determine how much it will cost to buy a car, including the monthly payments and the total cost of the loan. By playing with the numbers, you can see how a lower interest rate or a longer loan term will impact your loan costs. By using the calculator to look at different borrowing scenarios, you can decide which makes the most sense for your budget and goals.

Factors that affect your auto loan

  1. Principal amount

    The principal is the amount of money you are planning to borrow to purchase your vehicle. Keep in mind how much car you can afford when searching for cars and comparing loans, and compare the cost of your loan when you make larger or smaller down payment. A larger down payment can shorten the loan term and therefore reduce the total amount of interest you'll pay over time. A smaller down payment will result in a longer loan term and more interest payments.

    You can also check how much you might save by opting out of unnecessary dealer fees and paying taxes (and other costs) upfront rather than rolling them into your loan principal. The same goes for add-ons the dealer may try to temp you with, so crunch the numbers to find out how much they increase the loan balance and whether it makes sense to say no.

  2. Interest rate

    The interest rate is the amount you pay per month to borrow a loan, expressed as a percent. Entering different interest rates in this calculator can help you determine how much an auto loan will actually cost. While calculating the interest rate of a loan is helpful, comparing the annual percentage rate (APR) of loans is a more accurate way to look at total loan cost since a loan's APR includes both fees and interest.

    Try entering rates from different lenders to see how their costs compare. It's also helpful to calculate the interest charges of buying a new car versus a used car or by raising your credit score before buying.

  3. Loan term

    A loan term is the amount of time you take to repay the loan. Auto loan terms are expressed in months, with most auto loans between 24 and 84 months.

    Choosing shorter or longer terms can affect how much you pay per month as well as the total cost of your loan. Longer terms spread out your repayment over more months, leading to smaller monthly payments. However, that means paying interest for longer. Shorter terms save you money on interest, but require larger monthly payments. 

  4. Vehicle condition

    Whether you choose a new or used vehicle will affect the cost of your loan. The MSRP of new vehicles is higher than used vehicles, resulting in a higher loan principal but a lower APR than you would receive with a used vehicle. Used vehicles depreciate more slowly than new ones, but may have higher maintenance costs.

  5. Amortization schedule

    The amortization schedule is a chart that shows:

    • When each payment is due
    • How much of each payment goes to the loan's principal
    • How much of each payment goes to interest
    • The loan's remaining balance
    • The loan's payoff date

Understanding your results

Consider the results the calculator provides carefully. While monthly payment is a critical consideration, other factors like loan amount, repayment term and interest rate also impact how much a car purchase will ultimately cost you.

To decide on a loan amount

While an affordable monthly payment is important, it's also important to keep an eye on the total loan amount. While long terms can help you spread out a big cost, spending too much — and taking too long to pay it off — puts you at risk of being upside-down on your loan. Do the math before you hit the lot and commit to a loan amount that fits your financial goals.

To chose the best repayment term

With your monthly budget in mind, decide the maximum monthly auto loan payment you can comfortably afford. Your repayment term can be more important than the interest you're charged. For example, you'll have a higher monthly payment but pay over $1,000 less in interest on a $30,000 if you choose a shorter term — even with a slightly higher interest rate. 

Interest rate Term Monthly payment Total interest
7.02% 48 months $719 $4,496
6.94% 60 months $593 $5,591

Owning a vehicle comes with hidden costs such as fuel, insurance and maintenance, so work those into your monthly budget, too. You'll feel more confident negotiating your car price at the dealership when you already know what you're willing to pay. 

To compare interest rates

Even a slightly higher interest rate can translate to hundreds of dollars more over the life of an auto loan. Use this calculator to compare offers from different lenders and see what you can save.

You can also use data on the average auto loan interest rates to estimate what your interest rate could be if you paid down debt or raised your credit score before taking out your auto loan or if you need a cosigner. 

To determine your down payment

Ideally, the down payment you make on a car should be between 15% to 20% of the car’s total cost. Making a larger down payment means you'll borrow less overall, which will reduce the total cost of your loan. For example, a larger down payment on a car with a $45,000 MSRP will save you money every month and cost you less overall. 

Down payment Principal Interest rate Term Monthly payment Total interest
$9,000 $36,000 6.40% 60 months $703 $6,162
$12,000 $33,000 6.40% 60 months $664 $5,648

Current auto loan rates

When comparing auto loans, keep an eye on current auto loan rates. Borrowers with excellent credit can expect rates around 4.88% for new car loans, while those with lower credit scores should expect rates around 15.85%, according to Experian's most recent State of the Automotive Finance Market report.
Credit score New car loans Used car loans
781 to 850 (super prime) 4.88% 7.43%
661 to 780 (prime) 6.51% 9.65%
601 to 660 (near prime) 9.77% 14.11%
501 to 600 (subprime) 13.34% 19.00%
300 to 500 (deep subprime) 15.85% 21.60%
Source: Experian State of the Automotive Finance Market, Q3 2025

Next steps for auto loans

Ready to find your auto loan? Tap into Bankrate's expertise with these links and start your car-buying journey like a pro.

Related calculators and resources