New Car Loan
Estimate your monthly car payment including interest and loan term. Compare new vs. used car financing.
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Quick Examples
Estimates only. Not financial advice. Actual terms depend on lender underwriting, credit profile, and market conditions. Full disclaimer →
Estimated Monthly Payment
$2,178/mo
Total Interest
$141,998
Total Months
180
Total Cost
$391,998
Payoff Date
May 2041
How we calculate this
We use the standard amortization formula:
M = P × [r(1 + r)n] / [(1 + r)n − 1]
- P
- Principal — the loan amount you entered
- r
- Monthly interest rate — your annual rate divided by 12
- n
- Number of monthly payments — your loan term in months
This uses the standard PMT formula used by banks, credit unions, and federal student loan servicers. Results are estimates — actual payments may vary with lender-specific rounding, taxes, insurance, and fees.
Read full disclaimer →DTI Estimator
Lenders typically verify income via paystubs, W-2s, or tax returns. Self-employed borrowers may need 2 years of tax returns.
Compare Scenarios
Compare your current inputs against a second scenario side-by-side to see how changes in loan terms affect your total cost.
Based on national averages • Not financial advice
Reviewed by the LoanVerity Financial Content Team
Every calculator on LoanVerity is built using standard financial formulas (PMT amortization, compound interest) and reviewed for mathematical accuracy by our editorial team. We're an independent educational platform — not a lender, broker, or financial advisor.
Methodology & Sources
Our calculator formulas are based on publicly documented financial methodologies and validated against the following authoritative sources:
- CFPB — Loan Basics Guide
Federal guidance on interpreting loan estimates, APR, and total cost disclosures
- Federal Reserve — Consumer Credit Data (G.19)
National average auto loan and personal loan APRs, updated monthly
- Investopedia — Amortization & PMT Formula
Standard amortization methodology used in all LoanVerity calculators
- CFPB — Debt Collection & Payoff Guidance
Federal guidance on debt payoff strategies and consumer rights
- Behavioral Finance Research — Debt Repayment Adherence
Peer-reviewed study on snowball vs. avalanche adherence rates
Frequently Asked Questions
- What's a good APR for an auto loan?
- For new cars, APRs typically range from 4-8% for borrowers with good credit. Used car loans are generally 1-3% higher. Shop around with credit unions, banks, and dealer financing.
- How much should I put down on a car?
- A 20% down payment is recommended for new cars. For used cars, aim for at least 10%. A larger down payment reduces your monthly payment and total interest.
- Should I finance a new or used car?
- New cars depreciate 20-30% in the first year, but offer lower APRs and warranties. Used cars have higher rates but lower purchase prices. Run the numbers on both scenarios.
- What credit score do I need for a new car loan?
- Most lenders require a minimum score of 660 for prime rates. Subprime lenders may approve scores as low as 500, but at significantly higher APRs (15-25%). The best rates (4-6%) go to borrowers with 720+ scores.
- Is dealer financing better than a bank loan?
- Dealers often offer promotional rates (0-3% APR) on new cars, which can beat bank rates. However, always get pre-approved from a bank or credit union first so you can negotiate. Dealers may inflate the rate to earn commission.
Related Tools
Understanding Your Auto Loan Estimate
Auto loan rates vary substantially between new and used vehicles. New car APRs typically range from 4% to 8% for borrowers with good credit, while used car loans are generally 1% to 3% higher. Certified pre-owned vehicles often qualify for rates closer to new car financing. The length of your loan term is a critical factor: a 72-month loan carries a lower monthly payment than a 36-month loan, but you will pay significantly more in total interest.
If you have a trade-in vehicle, subtract its value from the vehicle price before calculating. A larger down payment — ideally 20% for new cars and 10% for used — reduces both your monthly payment and total interest. Use the Extra Monthly Payment field to model accelerated payoff strategies and see how much you can save.
This calculator does not account for sales tax, registration fees, dealer documentation fees, or extended warranties. Contact your state DMV or the dealership for a complete out-the-door price. All estimates are educational — not a financing offer.
All results are educational estimates. Not financial advice. Full disclaimer
Content reviewed by financial education specialists. Editorial policy •