Car loan calculator
Free car loan calculator. See exact monthly payment, total interest paid, and how fast you can pay off with extra monthly payments.
Typical car loan costs
A $30,000 car loan at 8.5% APR for 5 years costs about $616/month with $6,958 total interest. Extending to 7 years drops the payment to $474 but adds $10,500 more in interest and leaves you upside-down for years.
Average auto loan rates by credit score
- 720+ (excellent): 6-8% on new, 8-10% on used
- 660-719 (good): 8-11% new, 10-13% used
- 620-659 (fair): 12-16% new, 14-18% used
- Under 620 (subprime): 16-22%+ — consider fixing credit first
Credit union rates are typically 1-2% lower than banks or dealer financing. Always get pre-approved from a credit union before visiting a dealer — gives you leverage and a baseline.
Why shorter terms save more than you think
Same $30,000 loan at 8.5%:
- 3 years: $947/mo, $4,093 interest
- 5 years: $616/mo, $6,958 interest
- 7 years: $474/mo, $9,799 interest
Going from 3 to 7 years nearly doubles the total interest and keeps you in debt twice as long — for a car that's depreciating the whole time.
Upside-down car loans: the trap
Cars depreciate 15-25% in the first year and 50-60% by year 5. If your loan balance exceeds the car's value, you're "upside-down." Problems:
- Can't sell without writing a check
- If totaled, insurance payout leaves you owing the gap (GAP insurance helps)
- Can't easily refinance or trade-in
Avoid upside-down by: 20%+ down payment, 4-year or shorter term, buying slightly used instead of new.
Extra payments on auto loans
Most car loans use simple interest, calculated daily. Extra payments apply directly to principal, reducing the base interest accrues on. On a $30,000/8.5%/5-year loan: an extra $100/month saves $850 in interest and pays off 9 months early.