🚗 Auto Loan · US 2026
Auto Loan Calculator 2026
That $30,000 car doesn't cost $30,000. Depending on your rate and term, you'll pay $3,000–$8,000+ in interest on top. Enter your numbers on the left to see the full picture.
2026 Auto Loan Rates by Credit Score
| Credit Score | New Car | Used Car |
|---|---|---|
| 750+ | 5.5–6.0% | 6.5–7.5% |
| 700–749 | 6.5–7.5% | 8–9% |
| 650–699 | 8.5–10% | 10–13% |
| Below 650 | 12–18%+ | 14–20%+ |
Loan Term Comparison ($30K @ 7%)
| Term | Monthly | Total Interest | Total Cost |
|---|---|---|---|
| 36 months | $926 | $2,336 | $32,336 |
| 48 months | $718 | $3,187 | $33,187 |
| 60 months | $594 | $5,640 | $35,640 |
| 72 months | $513 | $6,640 | $36,640 |
| 84 months | $453 | $8,052 | $38,052 |
💡 The 84-month trap: Going from 48 to 84 months saves $265/month — but costs $4,865 more in interest. You also risk owing more than the car is worth as it depreciates.
Down Payment Impact ($35K @ 7%, 60mo)
| Down Payment | Loan Amount | Monthly | Total Interest |
|---|---|---|---|
| $0 (0%) | $35,000 | $693 | $6,580 |
| $3,500 (10%) | $31,500 | $624 | $5,240 |
| $7,000 (20%) | $28,000 | $554 | $4,240 |
| $10,500 (30%) | $24,500 | $485 | $3,910 |
How to Pay Less on Your Auto Loan
| Strategy | Potential Saving |
|---|---|
| Get pre-approved before dealership | 0.5–1.5% lower rate |
| Use a credit union vs dealer | 1–2% lower rate |
| Improve credit score 50 pts | 1–2% lower rate |
| Choose 48mo vs 84mo | $4,865 less interest |
| Put 20% down vs 0% | $2,340 less interest |
📖 Want the full breakdown? Read our Auto Loan Guide 2026 — covers rates, terms, credit scores, and when to pay cash vs finance.
Frequently Asked Questions
How is my monthly car payment calculated?▼
Your monthly payment is calculated using the formula: P × [r(1+r)^n] / [(1+r)^n - 1], where P is the loan principal, r is the monthly interest rate (APR ÷ 12), and n is the number of months. For example, a $25,000 loan at 6% APR for 60 months works out to $483/month.
What is a good interest rate for a car loan in 2026?▼
In 2026, a good auto loan rate is anything below 6.5% for a new car if you have a credit score of 700+. For used cars, below 8% is considered competitive. Rates above 12% are generally high — improving your credit score before applying can save you thousands.
Is a 72-month or 84-month car loan a bad idea?▼
Longer loan terms lower your monthly payment but dramatically increase total interest. On a $30,000 loan at 7%, going from 48 months to 84 months saves $265/month but costs $4,865 more in interest. You also risk being "underwater" — owing more than the car is worth as it depreciates.
How much should I put down on a car?▼
Financial advisors typically recommend at least 20% down on a new car and 10% on a used car. A larger down payment reduces your loan principal, lowers monthly payments, reduces total interest paid, and helps you avoid negative equity as the car depreciates.
How much car can I actually afford?▼
A common rule is to keep your monthly car payment under 15% of your take-home pay. Your total vehicle costs — payment + insurance + fuel + maintenance — should stay under 20% of take-home. So if you earn $5,000/month, your car payment should ideally be $750 or less.
Should I get pre-approved before visiting a dealership?▼
Yes — always. Getting pre-approved from a bank or credit union before visiting a dealership gives you a baseline rate to negotiate from. Dealer financing is often 1–2% higher than what you can get elsewhere. Knowing your rate also protects you from being focused on monthly payment instead of total loan cost.
Does a car loan affect my credit score?▼
Yes. Applying for a loan triggers a hard inquiry which can temporarily lower your score by a few points. However, making consistent on-time payments builds your credit over time. Multiple loan applications within a 14-day window are typically counted as one inquiry by credit bureaus.
What is the difference between APR and interest rate on a car loan?▼
The interest rate is the base cost of borrowing. APR (Annual Percentage Rate) includes the interest rate plus any additional fees like loan origination fees, making it a more complete picture of your true cost. Always compare APRs when shopping for auto loans, not just the stated interest rate.