Car Loan Calculator
Planning to buy a new or used car? One of the most important first steps is understanding how much it will truly cost you each month. Our free and easy-to-use car loan calculator helps you see the complete financial picture before you even step into a dealership.
By calculating your estimated monthly payment, you can shop with confidence, stay within your budget, and negotiate a better deal. This calculator provides a detailed estimate by including key factors like your down payment and interest rate, giving you the knowledge you need to make a smart financial decision.
Understanding the Calculator Fields
To get the most accurate estimate, it helps to understand what each input means.
- Loan Amount
- This is the total price of the vehicle you wish to purchase. It's sometimes called the "sticker price" or the negotiated price before any down payment.
- Down Payment
- This is the initial amount of money you pay upfront. A larger down payment reduces the amount you need to borrow, which can lower your monthly payment and the total interest you pay.
- Annual Interest Rate (APR)
- This is the cost of borrowing the money, expressed as a yearly percentage. Your credit score is the biggest factor that determines your interest rate. A higher score typically means a lower rate.
- Loan Term
- This is the length of time you have to repay the loan, typically in years. A shorter term (like 3 or 4 years) means higher monthly payments but less interest paid overall. A longer term (like 6 or 7 years) lowers your monthly payment but means you'll pay more in total interest.
Frequently Asked Questions
How much should I put down on a car?
Financial experts often recommend a down payment of at least 20% for a new car and 10% for a used car. A larger down payment helps reduce your monthly payments, builds equity faster, and minimizes the risk of being "upside down" on your loan (owing more than the car is worth).
What is a good interest rate for a car loan in 2025?
Interest rates vary based on your credit score and current market conditions. As a general guide for 2025, a score of 720 or higher (excellent credit) might get you an APR of 5-7%. A score between 660-719 (good credit) might see rates of 7-9%. Rates for scores below 660 will typically be higher.
Can I get a car loan with bad credit?
Yes, it is possible to get a car loan with a low credit score. However, you should expect to pay a significantly higher interest rate. Lenders may also require a larger down payment or a co-signer to approve the loan. It's important to use the calculator to see how a higher APR affects your total cost.
Does this calculator work for all car types?
Absolutely. You can use this calculator for any type of vehicle, whether it's a new or used sedan, SUV, truck, or an electric vehicle (EV). The loan principles are the same regardless of the car's fuel type.