Auto Loan Calculator
See the true cost of that car loan. How long until you own it outright, and how extra payments save you hundreds in interest.
Frequently Asked Questions
How is auto loan interest calculated?
Auto loan interest uses simple interest (not compound). Your monthly payment is fixed, but the portion going to interest declines each month as the principal shrinks. A lower APR or shorter term both reduce total interest paid.
What is a good APR for a car loan right now?
As of 2026, borrowers with excellent credit (740+) can expect 4–6% APR on new cars and 6–9% on used. Good credit (680–739) typically sees 6–10%. Subprime borrowers often face 12–18%+.
Does a longer loan term mean lower payments?
Yes, but you pay far more interest overall. A 72-month loan might save $100/month vs. a 48-month term, but costs $2,000–$4,000 more in interest. You also risk being underwater on the loan longer.
Can I pay off my auto loan early without penalty?
Most lenders allow it, but check your contract. Some states ban prepayment penalties on auto loans, while others allow a small fee (typically 1–2% of remaining balance). Paying early saves all future interest.
What credit score do I need for the best car loan rates?
To qualify for top-tier rates (under 5%), you typically need a credit score of 740 or higher. Scores 680–739 still get competitive offers. Improving your score by 50 points can save thousands over the loan term.
Why this matters
On a $25,000 loan at 7% APR: 6-year payoff costs $3,200 in interest. Adding $100/month extra cuts it to 46 months and $2,200 total interest. That's $1,000 saved and 18 months sooner. Used cars carry higher rates — 10–15% APR is common.