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Car Payment Calculator

Estimate your monthly auto loan payment, total interest paid, and true cost of ownership in seconds.

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Enter your vehicle and loan details to see your payment.

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APR Impact

On a $25,000 loan over 60 months, going from 5% to 8% APR costs you an extra $2,000+ in interest. A good credit score can save you thousands.

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Loan Term Trap

A 72 or 84-month loan lowers your payment but dramatically increases total interest paid — and you risk being "underwater" (owing more than the car is worth).

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20/4/10 Rule

Aim for 20% down, a loan term of 4 years or less, and keep total car expenses (payment + insurance) under 10% of your gross monthly income.

Common Questions

What APR can I expect with my credit score?

Excellent credit (750+): 4–6% APR. Good credit (700–749): 6–9%. Fair credit (650–699): 10–15%. Poor credit (below 650): 15–25%+. Improving your credit score before buying can save thousands over the loan term.

Should I put more money down?

Yes — a larger down payment lowers your loan amount, reduces monthly payments, decreases total interest, and helps you avoid being upside-down on the loan. Aim for at least 10–20% down on a new car.

Is dealer financing or bank financing better?

Always get pre-approved from your bank or credit union before visiting a dealership. This gives you a baseline rate to compare against dealer offers. Credit unions typically offer the lowest rates for auto loans.

What is a good monthly car payment?

Financial experts recommend keeping your total car expenses (loan payment + insurance + gas + maintenance) under 15–20% of your take-home pay. For a $4,000/month take-home, that's about $600–$800 total for all car costs.

How to Calculate Your Car Payment

Your monthly car payment depends on four main factors: the vehicle price, your down payment, the loan term, and your interest rate (APR). A higher down payment and shorter loan term mean higher monthly payments but less total interest paid. Use our car payment calculator above to instantly see your estimated monthly payment and total cost of ownership.

For example, on a $30,000 car with $3,000 down, financed over 60 months at 6.5% APR, your monthly payment would be about $526. Over the life of the loan you would pay approximately $3,576 in interest on top of the purchase price.

What Is a Good APR for a Car Loan in 2025?

Car loan rates in 2025 vary significantly based on your credit score. Borrowers with excellent credit (750+) can typically qualify for rates of 4-6% APR on new cars. Good credit (700-749) typically sees rates of 6-9%. Fair credit (650-699) may face rates of 10-15% or higher. Credit unions typically offer lower auto loan rates than traditional banks or dealer financing.

The 20/4/10 Rule for Car Buying

Financial experts recommend the 20/4/10 rule: put at least 20% down, finance for no more than 4 years, and keep total car expenses (payment plus insurance) under 10% of your gross monthly income. This rule helps you avoid being upside-down on your loan and keeps car costs from straining your budget.

New vs Used Car: Which Is the Better Deal?

New cars come with full warranties, the latest safety features, and lower financing rates — but they depreciate roughly 20% in the first year alone. Used cars cost less upfront and depreciate more slowly, but may have higher maintenance costs and carry more risk. A certified pre-owned vehicle from a dealership offers a middle ground with inspection and limited warranty coverage.

From a pure financial standpoint, buying a 2-3 year old used car that has already taken the biggest depreciation hit is often the smartest move. You can get a nearly-new vehicle at a significantly lower price and still qualify for good financing rates if your credit is strong.

Should I Pay Cash or Finance a Car?

If you can get a low interest rate — say under 4% — financing can actually make financial sense even if you have the cash available, because you could invest that cash and potentially earn more than your loan interest rate. However, financing at higher rates of 8-15% or more makes paying cash the smarter choice if you have the funds.

Always get pre-approved for financing from your bank or credit union before visiting a dealership. This gives you a baseline rate to compare against dealer financing offers, and prevents the dealership from manipulating the monthly payment to obscure the true cost of the vehicle.