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Car loan calculator
See your monthly payment, the total interest and the real out-the-door cost before you talk to a dealer.
How to use the car loan calculator
Enter the car price, your down payment, the APR you were offered and the loan length in months. The calculator shows your monthly payment and how much interest you pay over the life of the loan.
A few tips for accurate results:
- Use the APR, not a teaser rate. The APR includes most lender fees.
- Add taxes and fees to the price if you plan to finance them, because they raise the amount you borrow.
- Try two or three loan lengths. The payment difference is usually smaller than people expect, and the interest difference is larger.
As a test, enter Experian’s Q2 2026 averages. A $43,610 new car loan at 6.35% over 70 months comes to about $747 a month and about $8,688 in total interest. A $27,852 used car loan at 11.19% over 68 months comes to about $555 a month and about $9,883 in interest (our calculation). Even though the used loan is about $15,800 smaller, the higher rate means it costs more in interest.
Average car loan rates by credit score
Your credit score has more effect on your rate than almost anything else. These are average APRs from Experian for loans made in the second quarter of 2026.
| Credit tier | Score range | New car APR | Used car APR |
|---|---|---|---|
| Super prime | 781-850 | 4.41% | 6.29% |
| Prime | 661-780 | 6.15% | 8.81% |
| Near prime | 601-660 | 9.71% | 13.93% |
| Subprime | 501-600 | 13.52% | 19.10% |
| Deep subprime | 300-500 | 16.11% | 21.62% |
| All borrowers | 6.35% | 11.19% |
Source: Experian, Q2 2026, via Experian and Bankrate, Sep 2026.
To see what that means in dollars, we ran a $30,000 new car loan over 60 months at each tier’s average rate. A super prime borrower pays about $558 a month and $3,484 in total interest. A deep subprime borrower pays about $731 a month and $13,878 in interest (our calculation). Used car rates are higher at every tier.
Average car loan amounts and payments
| New car | Used car | |
|---|---|---|
| Average loan amount | $43,610 | $27,852 |
| Average APR | 6.35% | 11.19% |
| Average monthly payment | $765 | $542 |
| Average loan term | 69.5 months | 67.9 months |
| Average credit score | 751 | 688 |
Source: Experian, Q2 2026, updated Sep 2026.
Edmunds tracks new car loans a little differently and found similar numbers for the same quarter: an average of $44,156 financed, a $777 monthly payment and a $5,815 down payment. Edmunds also found that 20.3% of new car buyers signed up for payments of $1,000 or more a month, and that the average buyer will pay $9,811 in interest over the loan.
How loan length changes what you pay
Loans keep getting longer. In Q2 2026, Edmunds found 36.5% of new car loans ran 72 months or more, a record, and 23.9% ran a full 84 months.
A longer loan lowers the payment, but you pay interest for more months. Here is a $30,000 loan at the 6.35% new car average.
| Loan length | Monthly payment | Total interest |
|---|---|---|
| 36 months | $917 | $3,027 |
| 48 months | $709 | $4,050 |
| 60 months | $585 | $5,093 |
| 72 months | $502 | $6,155 |
| 84 months | $443 | $7,238 |
Source: our calculation, using Experian’s Q2 2026 average new car APR.
Going from 48 to 84 months cuts the payment by about $266 but adds about $3,188 in interest. Long loans also raise the chance that you owe more than the car is worth for several years, which hurts if you sell or trade it in early.
The 20/4/10 rule: how much car can you afford?
The 20/4/10 rule is a common rule of thumb. As Chase and LendingTree describe it:
- 20: Put at least 20% of the purchase price down.
- 4: Finance for no more than four years (48 months).
- 10: Keep total monthly transportation costs at or below 10% of your gross monthly income. That includes the loan payment, insurance, fuel and maintenance, not only the payment.
Here is how it works for a household earning $6,000 a month before taxes. Ten percent is $600 for all car costs. If insurance runs the national full coverage average of about $197 a month from our car insurance cost guide, that leaves about $403 for the payment, before fuel and upkeep. At 6.35% over 48 months, $403 a month repays about $17,000. With 20% down, that points to a car price around $21,300 (our calculation). Fuel and maintenance would lower it further.
That is far below today’s average new car loan, which is why many buyers stretch the term instead. The rule is a guideline, not a requirement, but it is a useful check before you sign. For a fuller picture of running costs, see the true cost of owning a car.
Ways to get a lower payment
- Check your credit first. Moving up one credit tier can cut several points off your APR.
- Get preapproved by a bank or credit union before visiting the dealer, so you have a rate to compare against the dealer’s offer.
- Put more down. A bigger down payment shrinks the loan and the interest.
- Consider a slightly used car. The average used car loan in Q2 2026 was $27,852, about $15,800 less than the new car average, though used car rates are higher at every credit tier.
- Compare leasing. A lease often has a lower payment, but you do not own the car. Our lease vs buy guide runs the numbers.
See how we research every number on our method page, or browse more car costs.
Common questions
What is a good APR for a car loan right now?
It depends mostly on your credit. In Q2 2026, Experian data shows super prime borrowers (781 and up) averaged 4.41% on new cars, while the overall new car average was 6.35% and deep subprime borrowers averaged 16.11%.
What is the average car payment?
Experian reports an average of $765 a month for new cars and $542 for used cars in Q2 2026. Edmunds puts the new car average slightly higher at $777, and 20.3% of new car buyers pay $1,000 or more a month.
Is a 72 or 84 month car loan a bad idea?
A longer loan lowers the payment but raises the total interest. In our calculation, a $30,000 loan at 6.35% costs about $4,050 in interest over 48 months and about $7,238 over 84 months.
What is the 20/4/10 rule?
It is a guideline described by Chase and LendingTree. Put at least 20% down, finance for no more than four years, and keep total car costs (payment, insurance, fuel and maintenance) at or below 10% of your gross monthly income.
Sources
Every number above comes from these pages. We list the date each page showed when we checked it.
- Experian, Average Car Payment
- Bankrate, Average Car Loan Interest Rates by Credit Score
- Ford Authority, More New Car Shoppers Took Out Long Loans in Q2 Than Ever Before (Edmunds data)
- Chase, What Is the 20/4/10 Rule for Car Buying?
- LendingTree, What Is the 20/4/10 Rule for Car Buying?
Estimates are for general information only. Get written quotes from licensed local pros before you decide.
- Passed Level II of the CFA® Program
- Canadian Securities Course (CSC)
- Conduct and Practices Handbook (CPH)
Sepehr Parsa is a financial planner and the founder and editor of DollarMap. He has passed Level II of the CFA Program and completed the Canadian Securities Course (CSC) and the Conduct and Practices Handbook (CPH) course. He writes and edits our guides on cars, home repairs, budgeting, saving and investing, and checks that every number has a source.
“In a slowing economy, a budget is what keeps you afloat.”
How we check every number
