Car Loan Calculator
Calculate your monthly new car payment, total interest, affordability check, and full amortization schedule.
| Term | Monthly Payment | Total Interest | Total Cost | Best for |
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| Month | Payment | Principal | Interest | Balance |
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What a Car Loan Really Costs — Monthly Payment vs Total Interest
Auto dealers present monthly payments because the monthly number always sounds more manageable than the total cost. A $35,000 car financed at 8% APR for 60 months is presented as “$709/month” — not as “$42,540 total” or “$7,540 in interest.” The calculator reverses this framing: it shows the total interest first, then the monthly breakdown.
| Loan Amount | APR | Term | Monthly Payment | Total Interest | Total Cost |
|---|---|---|---|---|---|
| $25,000 | 7% | 60 mo | $495 | $4,700 | $29,700 |
| $35,000 | 8% | 60 mo | $709 | $7,540 | $42,540 |
| $35,000 | 8% | 72 mo | $608 | $7,776 | $42,776 |
| $45,000 | 9% | 72 mo | $812 | $13,464 | $58,464 |
| $48,000 | 7.5% | 84 mo | $746 | $14,664 | $62,664 |
The Car Affordability Rules — How Much to Spend Based on Income
The average new car payment of $748/month in 2026 exceeds the 10% rule for anyone earning under $90,000/year. Nearly 1 in 5 new car buyers now pays over $1,000/month (Experian 2026). Financial experts consistently find that vehicle costs above 15–20% of take-home pay are a primary driver of financial stress and insufficient retirement savings. Use the car affordability calculator to find the maximum vehicle price based on your specific income before visiting any dealership.
Auto Loan Calculator — FAQ
Common questions answered with real numbers.
The average new car payment in 2026 is $748/month according to Experian Q4 2025 data — a 2.8% increase from the prior year. The average used car payment is $537/month. The average loan amount for new vehicles is $43,582. Nearly 1 in 5 new car buyers now pays over $1,000/month.
On a $50,000 salary ($4,167/month gross), the 10% rule recommends a maximum car payment of $417/month. At 7.5% APR over 60 months, $417/month supports a loan of approximately $20,500. Including a $3,000 down payment, the maximum vehicle price is approximately $23,500. A used vehicle in this range avoids the financial stress that comes with stretching to a new car payment.
A 60-month term is preferable to 72 months for most buyers. On a $35,000 loan at 8% APR: 60 months = $709/month, $7,540 total interest. 72 months = $608/month, $7,776 total interest. The 72-month loan saves only $101/month but costs $236 more in interest. More importantly, 72-month loans risk negative equity — the loan balance exceeding the car’s value — for longer, creating problems if you need to sell or trade before payoff.
A good auto loan APR in 2026 is below 6% for buyers with credit scores above 720. The national average new car APR is approximately 7–8% for prime borrowers. Credit unions consistently offer the lowest rates — often 1–2% below dealer-arranged financing for the same credit profile. Get pre-approved before visiting any dealership. On a $35,000 loan, a 2% rate difference saves approximately $1,900 in total interest.
Paying off a car loan early saves all remaining interest on the outstanding balance. Check your loan agreement for prepayment penalties — some lenders charge a fee, though most auto loans in 2026 have no prepayment penalty. Use the early payoff calculator to see exact interest saved and months eliminated by any extra monthly payment.
On a $40,000 auto loan: at 7% APR over 60 months: $792/month, $7,520 total interest. At 7% APR over 72 months: $678/month, $8,816 total interest. At 9% APR over 60 months: $830/month, $9,800 total interest. Use the auto loan calculator to get the exact payment for your specific rate and term.