How to Use the Car Loan Calculator
Enter the vehicle price, your down payment, any trade-in value, your state's sales tax rate, the interest rate offered by your lender, and the loan term. The calculator computes your exact monthly payment, total interest you'll pay over the life of the loan, and a full month-by-month amortization schedule showing how much of each payment goes to principal vs. interest.
Frequently Asked Questions
For new vehicles in 2025, borrowers with excellent credit (750+ FICO) can expect rates of 5–6.5% APR at banks and credit unions. For used vehicles, rates are typically 1–2% higher. Dealership financing can vary widely — always compare with your bank or credit union first. Rates above 10% on a car loan are considered high.
A 60-month (5-year) loan has higher monthly payments but you pay significantly less interest and own the car sooner. A 72-month (6-year) loan lowers your monthly payment by about $80–120 but adds $1,500–3,000 in total interest and increases the risk of being "underwater" (owing more than the car is worth) for a longer period. Use the amortization table above to compare both terms.
The 20/4/10 rule is a common guideline: put 20% down, finance for no more than 4 years, and keep total vehicle expenses (payment + insurance + gas) under 10% of gross monthly income. For a $7,000/month income, that's $700/month max for all vehicle costs. At current rates, that supports roughly a $28,000–$32,000 vehicle with a solid down payment.