Answer: Enter the amount, rate, and term and the Auto Loan Calculator returns your exact periodic payment with a full amortization breakdown of principal versus interest.
Calculate your monthly car payment
Your monthly car payment depends on the loan amount (price minus down payment and trade-in, plus fees and taxes where financed), the interest rate, and the loan term. Payments follow the standard amortization formula used for most installment loans: each month's payment covers the interest accrued on the outstanding balance, and the remainder reduces principal. Early payments are mostly interest; later payments are mostly principal. Longer terms mean lower monthly payments but more total interest paid.
The table shows a $30,000 loan at 7.5% APR across common terms, computed with the standard amortization formula. The pattern to notice: each step longer in term lowers the payment by less and less while adding more and more interest.
| Term | Monthly payment | Total paid | Total interest |
|---|---|---|---|
| 36 months | $933.19 | $33,594.72 | $3,594.72 |
| 48 months | $725.37 | $34,817.62 | $4,817.62 |
| 60 months | $601.14 | $36,068.31 | $6,068.31 |
| 72 months | $518.70 | $37,346.64 | $7,346.64 |
| 84 months | $460.15 | $38,652.46 | $8,652.46 |
Verification for one cell: at 7.5% APR, 60 months, the payment on $30,000 is 30,000 × (0.00625 × 1.00625^60) ÷ (1.00625^60 − 1) ≈ $601.14, and 60 × 601.14 − 30,000 ≈ $6,068 in interest. Doubling the term from 36 to 84 months cuts the payment roughly in half but more than doubles the interest.
Three levers dominate. Credit score: lenders price by credit tier, and the spread between superprime and deep-subprime borrowers is wide — single-digit APRs at the top versus high-teens-plus at the bottom. New versus used: used-car loans typically carry APRs one to three points higher than new-car loans at the same credit tier, partly because the collateral depreciates from a lower base. Term: longer terms often price slightly higher because default risk grows with duration. Down payment size and debt-to-income also matter. Manufacturer-subsidized promotions — 0.9% or similar on select models — are real but usually exclude cash rebates, so compare which is worth more on the specific deal.
Experian's State of the Automotive Finance Market puts hard numbers on the tiers. Here are the Q1 2026 average new- and used-car APRs by credit score band, with the payment and total interest each tier produces on the same $30,000, 60-month loan:
| Credit tier | Score band | Avg new APR | Avg used APR | Payment on $30k/60mo | Total interest |
|---|---|---|---|---|---|
| Super prime | 781+ | 4.55% | 6.30% | $559.97 | $3,598 |
| Prime | 661–780 | 6.23% | 8.77% | $583.20 | $4,992 |
| Near prime | 601–660 | 9.67% | 14.03% | $632.55 | $7,953 |
| Subprime | 501–600 | 13.44% | 19.42% | $689.37 | $11,362 |
| Deep subprime | 300–500 | 16.01% | 21.77% | $729.70 | $13,782 |
Read the bottom line twice: the same loan costs a deep-subprime borrower $10,184 more in interest than a super-prime one — $169.73 a month, every month, for five years. That is the strongest financial argument for spending a few months repairing a marginal score before buying, and it is why a pre-approval letter matters: it tells you your tier before a dealer's finance office does.
Manufacturers often make you choose, and the answer is arithmetic, not taste. A worked comparison on a $30,000 truck over 72 months:
| Deal | Amount financed | Monthly payment | Net outlay over 72 months |
|---|---|---|---|
| 0.9% factory financing | $30,000 | $428.17 | $30,829 |
| $2,000 rebate + 6.5% financing | $28,000 | $470.68 | $31,889 |
The promo rate wins this one by $1,060, even though the rebate shrank the balance. On this specific deal the rebate would need to reach roughly $2,500 before it beats the 0.9% — smaller rebates lose, bigger ones win, and your own rate offer moves the break-even. Run both options through the calculator above before you sign anything at the dealership.
A new car commonly loses a large share of its value in the first years of ownership — a frequently cited industry figure is that a new vehicle may lose roughly 20% of its value in the first year and a larger fraction over five years, varying by model. That matters for loans because a small down payment plus a long term plus rapid early depreciation can leave you owing more than the car is worth ("underwater"). Gap insurance covers the difference between the loan balance and the car's actual-cash-value if the car is totaled, and lenders frequently require it on long-term or low-down-payment loans. A larger down payment or shorter term shrinks the underwater window from both directions.
Trade-ins interact with tax in most states: when you trade in a vehicle, the taxable price of the new car is reduced by the trade-in value in the majority of states, which lowers sales tax — a genuine advantage over selling privately in those states, worth the tax rate times the trade value.
Refinancing is the other lever worth knowing. If rates fall or your credit improves after purchase, replacing the loan at a lower APR reduces either the payment or the term — and sometimes both. The usual guidance is to refinance when you can cut the APR meaningfully (a point or more) and avoid extending the term back out, which can erase the savings. Watch prepayment terms too: most auto loans today are simple-interest contracts with no prepayment penalty, meaning extra principal payments save interest directly, but a few legacy contracts carry rule-of-78s or prepayment charges that change the math. Reading the contract's prepayment clause before signing, and asking whether extra payments are applied to principal automatically, takes a minute and prevents an expensive surprise later.
One budgeting rule keeps the whole decision honest: the 20/4/10 guideline — at least 20% down, a term no longer than 4 years, and total vehicle costs (payment, insurance, fuel, maintenance) under about 10% of gross income. It is conservative by modern standards, where the average term now exceeds 60 months, which is exactly the point: it exists to prevent the loan from crowding out the rest of the budget. Where the full rule is impossible in your market, treat the total-cost cap as the non-negotiable part and let down payment and term flex around it.
Recent 60-month new-car bank loan averages have run around 7-8% APR; prime borrowers pay less, subprime more. Always compare a bank or credit-union pre-approval against dealer financing.
20% on new, 10% on used is the common guideline — enough to offset first-year depreciation and cut interest costs.
It lowers the payment but roughly doubles total interest versus 36 months on the same amount; choose it for cash flow, not to buy more car.
Coverage for the gap between what you owe and what the car is worth if it's totaled — often required on low-down, long-term loans.
In most states yes — the trade-in value reduces the taxable price on the new vehicle.
Super prime territory, roughly 781 and above, where the average new-car APR was 4.55% in Q1 2026 (6.30% used). Prime borrowers (661-780) averaged 6.23% new; below 660 pricing climbs through 9.67% near prime, 13.44% subprime, and 16.01% deep subprime, per Experian's State of the Automotive Finance Market.
Run both through the calculator. On a $30,000 truck at 72 months, 0.9% factory financing costs $428 a month and $829 in total interest. A $2,000 rebate with 6.5% financing on the remaining $28,000 costs $471 a month — $31,889 out of pocket net of the rebate versus $30,829 for the promo rate, so the rebate would need to be about $2,500 to match. Smaller rebates lose, bigger ones win; the math is always deal-specific.