Auto Loan Calculator
Our car loan calculator estimates a monthly car payment and total loan cost based on vehicle price, interest rate and loan length. Try different calculator scenarios to determine the best auto loan for you.
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Find a good loan based on current rates
Once you’ve determined the loan amount and term, add a few more details to search for lenders that meet your criteria. You’ll also see their current interest rate ranges.
About our car loan interest & payment calculator
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NerdWallet’s auto loan calculator goes beyond basic inputs such as loan amount, term and rate. You can also include a down payment amount, the value of a trade-in, any amount still owed on a trade-in, a sales tax percentage rate, the cost of title, registration and other fees — plus whether you want to finance these fees into the loan amount.
The goal is to give you a realistic, detailed view of what financing a car will cost, including an amortization schedule that breaks down how you’ll pay off the loan over time.
What to know about borrowing for a car
If you can’t or don’t want to pay cash for a new car or truck, you can borrow money to pay for it. Your approved auto loan pays for the vehicle upfront, so you can drive it while making monthly payments to repay the loan.
Basically, here’s how it works:
1. You apply for a car loan.
You may apply in person or online, usually at a bank, credit union, online lender or a car dealership.
2. The lender considers your application.
Lenders will take into account your credit score, credit history, car age and other factors when deciding whether to approve a car loan and at what rate.
3. You are approved or denied.
A lender might make an approval decision within minutes, or, if additional information is needed, it could take hours or days.
4. The lender issues your loan.
If your loan is approved, paperwork is finalized and funds provided to pay for the vehicle. You take possession and make monthly payments, with interest, to pay off the loan and officially own the car.
» MORE: How to get a car loan
Factors that affect your car loan
Several aspects of a loan contribute to what you’ll pay monthly and in total. Our car financing calculator collects these values, so you can plan for what you’ll be spending:
🏷️ Vehicle price
The final price of a new car won’t be the same as its MSRP (or sticker price), but this is a good place to start if you need to estimate. Subtract any manufacturer rebates or savings from dealer negotiations. Then add extra costs, such as vehicle options and the “destination fee" charged on new cars.
Estimating a used car’s sale price is a bit trickier. You could start with the seller’s asking price, but it’s possible you’ll be able to negotiate lower. You can also get an idea of a fair price for comparable cars through online pricing guides.
% Interest rate
If you get prequalified or preapproved for a loan, enter the rate you’re offered. Otherwise, you can estimate using the current average interest rate for your credit score. This table provides Experian average car loan APRs by credit score (based on the VantageScore credit scoring model):
Credit score | Average APR, new car | Average APR, used car |
|---|---|---|
Superprime: 781-850. | 5.25%. | 7.13%. |
Prime: 661-780. | 6.87%. | 9.36%. |
Nonprime: 601-660. | 9.83%. | 13.92%. |
Subprime: 501-600. | 13.18%. | 18.86%. |
Deep subprime: 300-500. | 15.77%. | 21.55%. |
Source: Experian Information Solutions, 2nd quarter 2024. | ||
🗓️ Loan term
Enter the number of months you want to pay off the loan. Car loans are usually in 12-month increments, with common terms being 24, 36, 48, 60, 72 or 84 months. NerdWallet recommends trying to go no more than 60 months, if possible. Longer terms will lower your monthly payment, but as the calculator's results will show, you’ll pay much more in total interest.
💰 Down payment
Not all lenders require a down payment, but NerdWallet suggests putting down at least 20% of a new car's purchase price, or 10% for a used car. If you can't afford this amount, put down as much as you can without draining your savings or emergency funds. Putting any amount down will help lower what you finance and the total cost of the loan.
🔄 Trade-in value
If you’ll be trading in a vehicle, enter its value. You can use online sites for appraisals and pricing help. When using a pricing guide, make sure you check the trade-in value and not the retail cost (the price at which the dealer sells the car). You can also get cash purchase offers from online retailers such as CarMax or Carvana to use as a baseline.
🫴 Amount owed on trade-in
If you’re still paying on a loan for the vehicle you plan to trade in, enter the remaining balance here. This is the payoff amount, which can be provided by your lender.
Tips for using an auto loan calculator
An auto loan calculator is a powerful tool that can help you plan and possibly save thousands of dollars. Here are some ways you can use a calculator to reduce car-financing costs:
To find the lowest-cost loan. Apply to several lenders for preapproved loan offers, but do it within a two-week timeframe to lessen any impact to your credit score. Using this auto loan calculator, enter interest rates and terms from the loan offers to narrow down your best option. If you’re buying a car from a dealership or online car retailer, you can use your own financing from a bank, credit union or other lender. If you’re buying from a dealership, take the lowest-rate loan offer with you, to see if the dealer can beat it.
To decide on a loan term. Sometimes lenders and car dealers will reduce a monthly car payment by lengthening the loan term, which will increase what you pay overall. With this calculator, you can clearly see your total loan cost — not just the monthly payment — with various loan terms. You may decide a shorter term is the better choice.
To figure in additional expenses. Car buyers often don’t anticipate certain costs on top of a car’s price— such as state and local taxes, dealer documentation fee (which can vary widely) and registration fees. This calculator enables you to capture these costs under Add Advanced Info. To obtain estimates, you can search online, call your Department of Motor Vehicles or contact a dealership to ask for average costs in your area.
An example of the difference a loan's term can make: If you take out a $40,000 new car loan with an 84-month term at 9% APR, you would pay about $623 monthly and $12,369 in total interest over seven years. Shortening the term to 60 months would increase the monthly payment to $811, but it would reduce your total interest paid to $8,600.
Different types of auto financing
You can use this auto loan calculator for nearly all types of car financing, with one exception. Here are the different types of car financing you might encounter.
Purchase loans are self-explanatory — enabling you to borrow money to buy a new or used car. Lenders usually define a new car as one that has never been titled and is the current or previous model year. Used cars are usually defined as being older than the previous model year.
Refinance loans enable you to replace your current auto loan with a new one, usually with a lower interest rate or payment. While NerdWallet has an auto refinance calculator, you can use the calculator on this page to compare your current loan with an auto refinance loan.
Leasing is an agreement that enables you to drive a car for a specified amount of time and miles. Monthly lease payments are for car usage and not to eventually own the car, unless you decide to buy it at the end of the lease. Since leases are structured differently, you’ll want to use our car lease calculator to estimate monthly payments.
