Should I finance through the dealer or a credit union?

Credit unions almost always win on APR. Get pre-approved before you walk in; use the dealer’s offer only if they actually beat it.

Is 7.5% a good auto loan rate?

Depends on credit tier and year. Excellent credit typically gets rates a few points below average; subprime borrowers pay considerably more. Check current national averages before assuming your rate is good.

How much should I put down on a car?

Conventional advice: 20% on a new car, 10% on used. Real-world: 10% down on either is acceptable if your monthly payment fits the 20/4/10 rule (20% down, 4-year max term, 10% of monthly income). Less than 10% down on new cars usually means you're underwater (loan exceeds car value) for the first 1-2 years due to depreciation. Putting more down reduces interest but ties up cash that could be in higher-return investments. Don't put down so much that you drain emergency funds.

Should I buy new or used?

New car loses 20-30% of value in year 1, 50% by year 5 (depreciation). Used (2-4 years old) gets you a 30-50% discount on a car with most of its useful life remaining. Certified pre-owned (CPO) adds dealer warranty for $500-2K premium. Math favors used: a $35K new car is a $20K 4-year-old car for ~50% less. The downsides: limited inventory of specific models, slightly higher repair risk, may not include latest safety features. For long-term ownership (8+ years), the new vs. used gap narrows.

What's the longest auto loan term I should take?

60 months max for new cars; 48 months max for used. 72-month and 84-month terms are increasingly common but cost thousands more in interest and leave you underwater longer. The 'longer term, lower payment' trap costs an average buyer $1,500-3,000 in extra interest over the loan. If you can't afford the car at 60 months, you can't afford the car. Consider a cheaper vehicle or save more down payment.

How does my credit score affect my auto loan rate?

FICO 740+: 5-7% rate (prime). 670-739: 7-10% rate (good). 580-669: 11-15% rate (subprime). Below 580: 15-22% rate (deep subprime). The credit-score gap on a $30K, 5-year loan: 5% rate = $566/mo, 12% rate = $667/mo, 18% rate = $762/mo. Total interest: $3,968 vs $10,036 vs $15,720. Improving credit by 100 points before buying often saves $5K-10K. If your score is below 670, wait 6-12 months and rebuild credit before financing.

Money & Finance · Free tool

Car Loan Calculator

Free car loan calculator. Enter the vehicle price, down payment, APR, and term to see your monthly payment and total interest before signing.

Updated June 2026

Loan amount ($)

Rate (%)Term (years)

Extra monthly payment ($) (optional — pays down principal faster)

Monthly payment

$701.33

Total paid

$42,079.69

Total interest

$7,079.69

Payoff date

Jun 2031

Payoff timeline

60 mo

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What it does

A free car loan calculator tuned to the inputs actually printed on a dealer’s financing sheet: vehicle price, APR, and term in years. It returns the monthly payment and — more importantly — the total interest you’ll pay before you own the car. Knowing that number up front is the single best thing you can do to negotiate well.

A $35,000 car loan at 7.5% for 5 years costs $702/month and $7,100 in interest. Stretch that same loan to 7 years and the monthly drops to $538 — but total interest jumps to $10,200. Longer term, lower payment, more total cost. Run both before you sign. Pair with our budget guide.

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Example input & output

Input

Price: $35,000
APR: 7.5%
Term: 5 years

Output

Monthly: $701.89
Total paid: $42,113
Total interest: $7,113

A 7-year term drops the monthly to $538 but raises total interest to $10,185 — $3,072 more.

How to use it

Enter the vehicle price (after any down payment and trade-in).
Enter the APR from your lender or pre-approval.
Enter the term in years — 5 is typical, 6-7 is common but costly.
Read monthly payment and total interest; compare across terms.

When to use this tool

Any fixed-rate auto loan — new car, used car, refinance quote.
Before walking into a dealership, so you have a number in your head.

When not to use it

Leases — those use money factor and residual value, not APR.
Variable-rate or promotional APR loans where the rate changes mid-term.

Common use cases

Comparing the dealer’s financing offer vs a credit union pre-approval.
Deciding between a 60-month and 72-month loan.
Budgeting a realistic monthly car payment before shopping.

Frequently asked questions

Should I finance through the dealer or a credit union?: Credit unions almost always win on APR. Get pre-approved before you walk in; use the dealer’s offer only if they actually beat it.
Is 7.5% a good auto loan rate?: Depends on credit tier and year. Excellent credit typically gets rates a few points below average; subprime borrowers pay considerably more. Check current national averages before assuming your rate is good.
How much should I put down on a car?: Conventional advice: 20% on a new car, 10% on used. Real-world: 10% down on either is acceptable if your monthly payment fits the 20/4/10 rule (20% down, 4-year max term, 10% of monthly income). Less than 10% down on new cars usually means you're underwater (loan exceeds car value) for the first 1-2 years due to depreciation. Putting more down reduces interest but ties up cash that could be in higher-return investments. Don't put down so much that you drain emergency funds.
Should I buy new or used?: New car loses 20-30% of value in year 1, 50% by year 5 (depreciation). Used (2-4 years old) gets you a 30-50% discount on a car with most of its useful life remaining. Certified pre-owned (CPO) adds dealer warranty for $500-2K premium. Math favors used: a $35K new car is a $20K 4-year-old car for ~50% less. The downsides: limited inventory of specific models, slightly higher repair risk, may not include latest safety features. For long-term ownership (8+ years), the new vs. used gap narrows.
What's the longest auto loan term I should take?: 60 months max for new cars; 48 months max for used. 72-month and 84-month terms are increasingly common but cost thousands more in interest and leave you underwater longer. The 'longer term, lower payment' trap costs an average buyer $1,500-3,000 in extra interest over the loan. If you can't afford the car at 60 months, you can't afford the car. Consider a cheaper vehicle or save more down payment.
How does my credit score affect my auto loan rate?: FICO 740+: 5-7% rate (prime). 670-739: 7-10% rate (good). 580-669: 11-15% rate (subprime). Below 580: 15-22% rate (deep subprime). The credit-score gap on a $30K, 5-year loan: 5% rate = $566/mo, 12% rate = $667/mo, 18% rate = $762/mo. Total interest: $3,968 vs $10,036 vs $15,720. Improving credit by 100 points before buying often saves $5K-10K. If your score is below 670, wait 6-12 months and rebuild credit before financing.

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