Auto Loan Calculator 2026
Enter your vehicle details to see monthly payments, total cost, and compare loan terms.
Vehicle Details
Monthly Payment
$628
60 months at 6.5% APR
Loan Amount
$32,100
Total Interest
$5,584
Total Cost
$42,684
Cost Breakdown
Term Comparison
| Term | Monthly | Total Interest | Total Cost |
|---|---|---|---|
| 36 mo (3yr) | $984 | $3,318 | $40,418 |
| 48 mo (4yr) | $761 | $4,440 | $41,540 |
| 60 mo (5yr) | $628 | $5,584 | $42,684 |
| 72 mo (6yr) | $540 | $6,751 | $43,851 |
| 84 mo (7yr) | $477 | $7,940 | $45,040 |
Disclaimer
- Actual rates depend on credit score, lender, and market conditions.
- Depreciation estimates are simplified averages.
- Sales tax rates vary by state and locality.
How Auto Loans Work
An auto loan is a secured installment loan where the vehicle serves as collateral. You borrow a set amount and repay it in fixed monthly installments over 36 to 84 months. The interest rate (APR) depends on your credit score, loan term, vehicle age, and the lender.
Average Auto Loan Rates by Credit Score (2026)
| Credit Score | New Car APR | Used Car APR |
|---|---|---|
| Excellent (750+) | 4.5-5.5% | 5.5-7.0% |
| Good (700-749) | 5.5-7.0% | 7.0-9.0% |
| Fair (650-699) | 8.0-11.0% | 10.0-14.0% |
| Poor (below 650) | 12.0-18.0% | 15.0-22.0% |
The 20/4/10 Rule for Car Buying
Financial advisors recommend:
- 20% down payment minimum
- 4-year (48-month) loan term maximum
- 10% of gross income for total transportation costs (payment + insurance + gas)
Short vs Long Loan Terms
A 36-month loan has higher monthly payments but saves thousands in interest. A 72 or 84-month loan has lower payments but you pay much more in total — and risk being "underwater" (owing more than the car is worth) for longer.
What Is Negative Equity?
Negative equity occurs when your loan balance exceeds the car's value. This is common with long-term loans and small down payments because cars depreciate fast — especially new cars, which lose about 20% of value in the first year. If you need to sell or trade in, you'd have to pay the difference out of pocket.
CFPB Auto Loan Guide→Frequently Asked Questions
Should I finance or pay cash?
If your auto loan rate is lower than what your money earns invested (after tax), financing may make sense — you keep your cash working. But if the rate is 8%+, paying cash (or putting more down) usually wins.
Lease vs buy — which is better?
Leasing offers lower monthly payments and a new car every few years, but you build no equity and face mileage restrictions. Buying costs more monthly but is cheaper long-term, especially if you keep the car 5-10 years after paying off the loan.
Can I refinance my auto loan?
Yes. If your credit score has improved or rates have dropped since you took out the loan, refinancing can lower your rate and monthly payment. Most lenders allow it after 6-12 months.
Need to factor car payments into your budget? Check our Debt Payoff Calculator to see how auto loan payments fit into your overall debt strategy.