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.
Calculated locally. Share links keep values after #.
These calculators provide estimates for educational purposes only. Results are not guaranteed and should not be treated as financial advice. Always consult a qualified professional before making major financial decisions.
The average new car loan in 2026 is $40,000 at 7.5% APR. Over a 72-month term, you pay $9,700 in interest -- enough for a second vacation. The bigger problem is loan churn: 38% of buyers roll negative equity into the next loan, burying the old debt under the new one. A $40,000 car at 7.5% costs $49,700 financed. At 15% (subprime), it costs $58,500.
Read more - how it works, tips & FAQs
How to use this calculator
- Enter the car price, down payment, and trade-in value to find your net loan amount.
- Choose your loan term (36 to 84 months) and APR based on your credit tier.
- Add an optional extra monthly payment to see how much interest you save.
- Review the amortization table showing each month: principal, interest, and remaining balance.
How to calculate this by hand
M = P × [r(1+r)ⁿ] / [(1+r)ⁿ – 1]
M = monthly payment, P = principal (loan amount), r = monthly interest rate (APR ÷ 12), n = total number of payments (loan term in months). The same amortization formula used for mortgages — just applied to a depreciating asset.
True Cost of a $35,000 Car
- Loan amount: $35,000 after $5,000 down
- APR: 6.5% (good credit, 2026 rate)
- Term: 60 months vs. 72 months
- 60-month: $684/month, $6,060 total interest
- 72-month: $587/month, $7,270 total interest
- Extra $50/month on 72-month: saves $1,240 and pays off 10 months early
Result: Paying over 72 months costs $1,210 more in interest than 60 months, even though the payment is $97 less.
Tips
- Put 20% down to avoid negative equity: Cars depreciate 20-30% in year one. Without 20% down, you owe more than the car is worth the moment you drive off the lot. That locks you into the loan and makes trade-in toxic.
- Shop APRs before shopping cars: Dealership financing marks up the rate 1-3% above what you qualify for. Get pre-approved at a credit union or online lender. Walk in with your own rate and let the dealer beat it.
- Check the money factor on leases: Leases hide the interest rate as a "money factor." Multiply by 2,400 to get the APR. A money factor of 0.0025 is 6% APR. Dealers often inflate this by 0.5-1% on customers who do not ask.
- Never finance add-ons: Extended warranties, gap insurance, and paint protection rolled into the loan cost you interest for 5-7 years. Pay for them upfront or skip them. They are highly profitable for dealers because they are heavily marked up.
Common mistakes to avoid
- Focusing only on monthly payment - Dealers love the monthly payment question because they can stretch the term to make any price affordable. Always negotiate the out-the-door price first, then discuss financing separately.
- Ignoring total loan cost - A $35,000 car at 7% for 72 months costs $42,820. The same car at 7% for 48 months costs $38,870. The 48-month buyer pays $3,950 less. Total cost matters more than monthly cash flow.
- Rolling negative equity - If you owe $5,000 more than the car is worth, rolling it into a new loan means paying 7% interest on $5,000 of nothing. Pay down the negative equity first before trading in.
2026 Average Auto Loan APRs by Credit Tier
| Credit Tier | Avg APR | $30K Loan (60 mo) | Total Interest | vs. Prime Cost |
|---|---|---|---|---|
| Super Prime (780+) | 5.24% | $569/mo | $4,140 | Baseline |
| Prime (660-779) | 7.35% | $597/mo | $5,820 | + $1,680 |
| Non-Prime (600-659) | 11.42% | $651/mo | $9,060 | + $4,920 |
| Sub-Prime (500-599) | 15.88% | $720/mo | $13,200 | + $9,060 |
| Deep Sub-Prime (< 500) | 19.99% | $789/mo | $17,340 | + $13,200 |
FAQ
What is a good APR for a used car loan?
In 2026, used car APRs run 1-3% higher than new. Excellent credit gets 6-8%, good credit 8-11%, and subprime 14-20%. The rate on a 3-year-old car is usually 1% higher than a new car.
Should I take dealer financing or my own bank loan?
Get pre-approved at a credit union or online lender before you shop. Let the dealer try to beat it. If they cannot match it, do not take their offer. A 1% rate difference on $35,000 over 60 months is $885.
How does my credit score affect my car payment?
A 100-point score difference can change your APR by 3-5%. On a $35,000 loan, that is $50-80/month and $3,000-5,000 in extra interest over the term. Check your score 6 months before buying.
Related resources
- Mortgage Prepayment Calculator Guide - See how extra payments save thousands in mortgage interest.