How much car can I afford on a loan?

There is no single number. A common approach is to keep total vehicle costs (payment, insurance, fuel, maintenance) within a comfortable slice of take-home pay after savings and other bills. This calculator shows the payment for the amount and rate you enter; combine that with your own budget and any pre-approval limit from a lender.

Is a longer car loan term better?

It depends on your goal. Longer terms reduce the monthly payment but you usually pay more interest overall and may owe more than the car is worth for a while. Shorter terms cost less in interest but require a higher payment.

Does this include tax, title, registration, or dealer fees?

No. We only model principal, rate, and term. If your loan includes taxes or fees, add them to the amount you enter. Otherwise, treat the output as principal-and-interest only.

Can I use a 0% promotional rate?

Yes. Enter 0 for the interest rate. Your monthly payment will be roughly the loan amount divided by the number of months. Read your contract for any fees or conditions that still apply.

Is a car loan the same as dealer financing?

Often it is still an installment loan, but the lender may be the manufacturer's finance arm or a bank. Compare dealer offers with a bank or credit union quote using the same amount and term so you are comparing apples to apples.

What credit score do I need for the best car loan rates?

Rates typically improve significantly with a score of 720 or higher. Scores in the 660–719 range may still qualify for competitive rates; below 660, expect higher rates. Shop multiple lenders before visiting the dealer.

Car Loan Calculator—Monthly Auto Payment Estimator

Currency

Car Price / Loan Amount

Interest Rate (%)

Loan Term (months)

Monthly Payment

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Total Interest

—

Total Payment

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Same math as our auto loan calculator. Also: personal, mortgage, how much can I afford, monthly payment guide.

Estimate only. LoanWise home · Mortgage calculator

Popular Calculations

Jump to the calculator you need—car, personal, mortgage, or by amount:

When to use this calculator

Before you visit the dealer — Know your target payment. No surprises at the desk.
Comparing offers — Dealer says 8%, bank says 6.5%. Plug both in and see the difference.
New vs used — Used rates run higher. Model both to compare total cost.
48 vs 60 vs 72 months — Lower payment now = more interest later. Run the numbers.

Current car loan rates and context (2025–2026)

New cars: 6%–9% for good credit (720+). Used: Often 1–3% higher.

Banks and credit unions often beat dealer rates—get pre-approved first. A 1% drop on $30k over 60 months saves $800+ in interest.

See our used car or refinance calculators for more.

How your car loan monthly payment is calculated

Simple: Fixed monthly payments = interest + principal. Early = mostly interest. Later = mostly principal.

Three inputs: amount financed, rate, and term. See our $20k, $30k, or affordability calculators for more.

How to use this calculator

Choose your currency — USD, GBP, EUR, or another supported currency to match your loan.
Enter the loan amount — The total you plan to finance (after any down payment or trade-in). If the car costs $28,000 and you put $3,000 down, enter 25000.
Enter the interest rate — Use the annual rate your lender or dealer quoted, not the monthly rate.
Enter the term in months — 36, 48, 60, or 72 are common (e.g. 60 = 5 years).
Click Calculate — See your monthly payment, total repayment, and total interest instantly.

Real-world examples

A $25,000 car loan at 6.5% for 48 months gives you a monthly payment of about $593. Over four years you'd pay roughly $28,450 in total—$3,450 in interest. Extend to 60 months and the payment drops to $489, but total interest rises to about $4,350.

A $35,000 SUV at 7.5% for 60 months ≈ $701/month and $7,050 in interest. A $18,000 used car at 9% for 48 months ≈ $448/month. See our car loan for $25,000, car loan for $30,000, or used car loan calculator for more.

Term comparison: $25,000 at 6.5% APR

How loan term affects monthly payment and total interest:

Term	Monthly Payment	Total Interest
36 months	$765	$2,548
48 months	$593	$3,450
60 months	$489	$4,350
72 months	$419	$5,164

Try Car Loan for $25,000 or 60 Month Auto Loan for pre-filled calculators.

What affects your car loan payment

Loan amount — A larger loan or smaller down payment means a higher monthly payment.
Interest rate — Your credit score, loan term, and lender all influence the rate. A 1% drop can save hundreds over the life of the loan.
Loan term — Longer terms lower the payment but increase total interest and the time you may owe more than the car is worth.
Add-ons — Warranties, gap insurance, or dealer fees financed with the loan increase the principal and payment.

Why use a car loan calculator

A car loan calculator helps you see your monthly payment and total interest before you visit a dealer or bank. Knowing the numbers upfront lets you set a budget, compare financing options, and avoid payment shock when you are ready to buy.

Know your payment before you shop

Enter the amount you plan to finance (car price minus down payment or trade-in), the rate you expect, and the term in months. A $28,000 car loan at 7% for 60 months costs about $554 per month and $5,250 in total interest. If that payment is too high, try a larger down payment, shorter term, or different vehicle. Use this car loan calculator to find a payment that fits your budget.

Compare dealer vs bank financing

Dealers and banks often quote different rates and terms. Plug each offer into the calculator to compare total cost. A dealer may advertise a low monthly payment on a 72-month loan while a bank offers a higher payment on 48 months with less total interest. This car loan calculator shows both the monthly line and the full cost so you can choose the better deal.

Avoid payment shock

Buying a car without running the numbers can lead to a payment you cannot afford. Add taxes, registration, and insurance to your budget—this tool shows principal and interest only. Try our affordability calculator if you want to work backward from a target payment. For trade-ins, use the car loan with trade-in tool.

What to check before you sign

Use these results as a planning range, not a promise from a lender. Compare the APR, not just the monthly payment—a lower payment on a longer loan can cost more in total interest. Ask whether the rate is fixed and whether there is a prepayment penalty. Watch for add-ons rolled into financing: extended warranties, gap insurance, or dealer fees. If financed, they increase your principal and interest cost. Insurance, fuel, and maintenance are not included—budget separately. Compare with our personal loan calculator or auto loan calculator; for interest schedules, try the interest calculator.

Frequently asked questions

How much car can I afford on a loan?: There is no single number. A common approach is to keep total vehicle costs (payment, insurance, fuel, maintenance) within a comfortable slice of take-home pay after savings and other bills. This calculator shows the payment for the amount and rate you enter; combine that with your own budget and any pre-approval limit from a lender.
Is a longer car loan term better?: It depends on your goal. Longer terms reduce the monthly payment but you usually pay more interest overall and may owe more than the car is worth for a while. Shorter terms cost less in interest but require a higher payment.
Does this include tax, title, registration, or dealer fees?: No. We only model principal, rate, and term. If your loan includes taxes or fees, add them to the amount you enter. Otherwise, treat the output as principal-and-interest only.
Can I use a 0% promotional rate?: Yes. Enter 0 for the interest rate. Your monthly payment will be roughly the loan amount divided by the number of months. Read your contract for any fees or conditions that still apply.
Is a car loan the same as dealer financing?: Often it is still an installment loan, but the lender may be the manufacturer's finance arm or a bank. Compare dealer offers with a bank or credit union quote using the same amount and term so you are comparing apples to apples.
What credit score do I need for the best car loan rates?: Rates typically improve significantly with a score of 720 or higher. Scores in the 660–719 range may still qualify for competitive rates; below 660, expect higher rates. Shop multiple lenders—banks, credit unions, and captive finance—before visiting the dealer.