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Auto loan calculator
Calculate your monthly car payment with any down payment, trade-in, and APR. See total interest paid across 3-, 4-, 5-, and 6-year terms for new or used cars.
The 20/4/10 rule
The classic affordable-car formula:
- 20% minimum down payment
- 4 years maximum loan term
- 10% maximum total transportation cost (payment + insurance + gas) as a share of gross income
Most Americans break all three of these and end up upside down (owing more than the car is worth). Following 20/4/10 guarantees you stay in equity.
$30,000 auto loan by term and APR
| Term | 5% APR | 7% APR | 10% APR |
|---|---|---|---|
| 3 yr | $899 ($2,366) | $926 ($3,346) | $968 ($4,847) |
| 4 yr | $691 ($3,159) | $719 ($4,488) | $761 ($6,529) |
| 5 yr | $566 ($3,968) | $594 ($5,652) | $637 ($8,245) |
| 6 yr | $483 ($4,793) | $511 ($6,840) | $556 ($9,996) |
| 7 yr | $424 ($5,634) | $453 ($8,053) | $498 ($11,789) |
Format: monthly payment (total interest). 84-month loans cost 2× the interest of 36-month loans.
Dealer financing vs credit union
Credit unions and online lenders (Capital One Auto, LightStream) consistently offer 1–3% lower APRs than dealer financing. Get pre-approved before stepping on a lot — it becomes your ceiling. Let the dealer try to beat it; if they can, take it. If not, use your pre-approval.
Auto Loan Calculator FAQ
How much car can I afford?
Following the 20/4/10 rule: 20% down, 4-year max term, total transportation ≤10% of gross income. On $75k gross ($6,250/mo), max ~$625/mo for car payment + insurance + gas. That maps to about a $25k–$28k vehicle.
Should I lease or buy?
Buy if you drive 12k+ miles/year, keep cars 5+ years, or modify them. Lease if you want a new car every 3 years, drive under 12k miles, and value warranty coverage. Buying is almost always cheaper over a 10-year horizon; leasing trades higher long-run cost for lower current payment.
What's a good auto loan APR in 2026?
Excellent credit (740+): 5.5–6.5% on new, 6.5–8% on used. Good credit (680–739): 7–9% new, 8.5–10.5% used. Fair (620–679): 9.5–13% new, 11–15% used. Subprime (under 620): 15–22%+ — often more cost-effective to delay and rebuild credit.
Is 0% APR a real deal?
Usually yes, but limited to top credit tiers (760+) and specific models the manufacturer is pushing. Often the 0% requires you forgo a rebate ($2,000–$5,000) — calculate which is cheaper. 0% on the sticker often costs more than 6% APR + rebate.
Should I make a large down payment?
At least 20% to avoid being underwater (loan balance > car value). Cars depreciate 20% in year one — a 0% down 7-year loan stays upside down for 4+ years. If you total it during that period, GAP insurance fills the gap; otherwise you're paying off a wrecked car.
Can I refinance my auto loan?
Yes, anytime — and you should if rates drop 1%+ or your credit score improved 50+ points since origination. Lenders like LightStream, Capital One, and PenFed make this easy. Watch for prepayment penalties on the original loan (rare but possible).