Calculate Your Car Loan Payments
Before you sign at the dealership, know exactly what you'll pay. This calculator shows your monthly payment, total interest cost, and full payment schedule for any vehicle loan. Compare different loan terms to find the best balance between affordable payments and minimum total cost.
Car Loan Interest Rates by Type
| Loan Type | Typical Rate Range | Best For |
|---|---|---|
| New car (dealer) | 4.0% – 8.0% | Convenience, promotional rates |
| New car (bank/CU) | 5.0% – 9.0% | Pre-approved, negotiating power |
| Used car (1-3 years) | 5.5% – 10.0% | Nearly-new vehicles |
| Used car (4+ years) | 7.0% – 14.0% | Budget-conscious buyers |
| Private sale | 7.0% – 12.0% | Unsecured personal loan |
How Loan Term Affects Total Cost
The loan term has a dramatic impact on what you actually pay. Consider a $30,000 car loan at 7%:
- 3-year term: $926/month, $3,350 interest — total $33,350
- 5-year term: $594/month, $5,644 interest — total $35,644
- 7-year term: $453/month, $8,069 interest — total $38,069
The 7-year loan costs $4,719 more than the 3-year option. Lower monthly payments are attractive, but they come at a steep price.
Tips for Getting the Best Car Loan
- Get pre-approved — Apply with your bank or credit union before visiting the dealer for negotiating leverage
- Compare total cost, not just monthly payments — Dealers often extend terms to lower payments while increasing your total cost
- Make a larger down payment — 20% down reduces your loan amount and may get you a better rate
- Choose the shortest affordable term — Even 1-2 years shorter can save thousands in interest
- Check your credit score first — Know where you stand and fix errors before applying
- Negotiate the vehicle price first — Agree on price before discussing financing