Auto Loan Calculator

Use our car loan calculator to estimate your monthly payments and see if you’re getting a good deal on your loan

Updated on: June 10, 2025

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How to use our car loan calculator

Loan amount

How much you borrow

Subtract your down payment from the price of the car you want. Your down payment should be 10%-20% of the car’s total cost.

Average amount borrowed: $41,720 new, $26,144 used*

Interest rate

The cost of your loan

Your APR (interest rate plus fees) depends on your credit score and whether you’re buying a new or used car. Use the table below to estimate your interest rate.

Average car loan rates: 6.73% new, 11.87% used*

Loan term

How long you have to pay back your car loan

Choose the shortest car loan term with monthly payments you can afford. Short repayment terms mean you may spend less money on interest.

Average loan term: 69 months new, 67 months used*

*Source: Experian’s State of the Automotive Finance Market Report

When using our auto loan calculator, remember to account for taxes and dealer fees, which can add up to 8 – 10% to the cost of your car, depending on your state and dealership. Don’t forget that owning a car costs money, too. Between fuel, insurance, taxes and repairs, owning a car costs $4,507.11 every year on average.

What do you need to know about your car loan?

LendingTree auto experts know a thing or two about car loans. We’ll answer your questions and show you how to use our car payment calculator to make sure you’re getting a good deal on your new ride.

Did you know?
The most popular cars to insure in the U.S. are the Ford F-150, the Toyota Camry and the Honda Accord, according to a recent LendingTree study. Learn more about what car you should buy.

On this page

Am I getting a good deal on my car loan?
Is now a good time to get a car loan?
How much can I afford to borrow for a car?
How can I save money on a car loan?
Frequently asked questions

Am I getting a good deal on my car loan?

Unless you’re able to snag a 0% APR car deal at a dealership, it’s hard to know if you’re getting a good deal on your car loan. How do you know if your interest rates are the best you can get?

For a quick rule of thumb, compare the rates in your offers to the average rate for your credit band in the table below. Not sure what your credit score is? Check for free with LendingTree Spring.

Credit score	Average new car APR	Average used car APR
Super prime (781-850)	5.18%	6.82%
Prime (661-780)	6.70%	9.06%
Nonprime (601-660)	9.83%	13.74%
Subprime (501-600)	13.22%	18.99%
Deep subprime (300-500)	15.81%	21.58%

Source: Experian’s State of the Automotive Finance Market Report

The only surefire way to know if you’re getting a good deal is to get quotes from a few different lenders before choosing one.

In fact, you can save an average of $5,198 on your car loan by shopping for your car loan on LendingTree. Our platform lets the lenders compete for your business so you can compare rates side-by-side before choosing your loan.

Is now a good time to get a car loan?

It’s a good time to get a car loan since rates are fairly steady. But buying a car is a different story — recent tariffs drove up car prices, so your monthly payments may still be higher than you’d like.

Car loan interest rates have remained relatively stable over the past year. In fact, the average car loan APR on LendingTree’s marketplace was down by 0.5% this April compared to last, making it a great time to get a car loan.

But car prices are up, so you’ll likely pay more for the same car than you would have last year, even when you take inflation into account.

How much can I afford to borrow for a car?

If you already have a car loan offer, you can use our auto loan calculator to estimate your monthly car payment and compare that estimate to the amount you’ve budgeted for your car loan every month.

But if you’ve just started looking for a car, use our car affordability calculator. You don’t need a car offer in hand. You can just tell us what you want to spend on your monthly car payment and the trade-in value of your current car, and we’ll tell you how much you can afford to borrow.

How can I save money on a car loan?

Buy used or certified pre-owned

Potential savings: $15,104 on average (as of publication)

Since new cars lose around 20% of their value in the first year alone, you can shave thousands off your purchase price by buying a used car instead. If you’re worried you’ll end up with a lemon, consider getting a certified pre-owned car from the original manufacturer. These cars are thoroughly inspected and often come with extended warranties.

Want a new car without a long-term commitment?
Consider leasing a car for many of the same benefits you get with buying. Lease payments tend to be cheaper than new car payments, and you won’t have to deal with the hassle of selling your leased car or trading it in.

Improve your credit

Potential savings: $2,316 on average (as of publication)

When you improve your credit score from “fair” to “very good,” you’ll save an average of $2,316 on your car loan and over $39,000 across different types of credit, like credit cards, personal loans and mortgages. Lenders offer lower rates to borrowers with high scores and a history of on-time payments, which translates to thousands of dollars of savings across your lifetime.

Look for rebates and deals

Potential savings: Several thousand dollars

Manufacturers sometimes offer special car rebates or discounts to encourage people to buy their cars. Rebates are typically discounts on particular car models or for a specific group of people, like college grads or teachers.

If you have excellent credit, you may be able to snag a 0% APR deal, meaning you won’t have to pay interest on your car loan. It’s unlikely that you’ll be able to combine 0% financing with a rebate, so use our car loan calculator to see which option will help you save more money.

Make a bigger down payment

Potential savings: Hundreds of dollars

It may seem counterintuitive to spend more upfront to save money. But the more you put down for your car, the less you’ll have to borrow — and the less money you’ll pay in interest. Plus, making a larger down payment can help you qualify for a car loan with bad credit.

Frequently asked questions

Your current monthly car payments will stay the same when the Fed cuts rates because auto loans come with fixed interest rates that don’t fluctuate with the market.

But when auto loan rates start to drop, consider refinancing your car loan to get lower rates and save money on your car payments.

When you get a car loan, you’re borrowing money to pay for the total cost of the car. You’ll pay back what you borrowed plus interest in equal monthly payments. Interest and fees (otherwise known as your APR) are the cost of taking out a car loan.

Yes, you can get preapproved for a car loan with multiple lenders. Just make sure to get all of your preapprovals within the 14-day rate-shopping window so that the credit pulls count as a single hard inquiry on your credit report.

American consumers certainly think so. In fact, 72% of car buyers changed their timeline out of concern for how tariffs will affect car prices.

But LendingTree chief credit analyst Matt Schulz warns against rushing to buy a car to get ahead of tariffs. “It’s possible auto loan rates will fall in the second half of 2025, mitigating some of the pain caused by the price increases. Also, you might be able to find better deals at the end of the month or quarter as dealers work to hit sales quotas.”