Finance
Auto Loan Calculator
Monthly payment, total interest, and true cost of any car loan.
How auto loans work
An auto loan is a secured loan — the vehicle is collateral. This makes rates lower than personal loans. The formula is identical to a mortgage: monthly payment = P × [r(1+r)ⁿ] ÷ [(1+r)ⁿ − 1].
Auto loan rates in 2026
- Excellent credit (750+): 4–6% new, 6–8% used
- Good credit (700–749): 6–9%
- Fair credit (650–699): 10–15%
- Poor credit (<650): 15–25%+
Finance or pay cash?
If your loan rate is below what you'd earn investing (historically ~7–10%), financing and investing the difference wins mathematically. At today's 7–8% auto rates it's nearly a wash — personal preference matters more.
⚡ CalcWolf Insight
The average new car payment in Q1 2026 hit $735/month — an all-time high. The average loan term is 69.5 months. Over 84 months at 8%, a $40,000 car costs $14,800 in interest alone.
Frequently asked questions
What is a good auto loan interest rate?▾
In 2026, under 6% for new cars with excellent credit. Used car rates run 1–3% higher. Rates above 15% should be avoided if possible — consider improving credit first.
Is a 72-month car loan a bad idea?▾
Usually yes. You pay significantly more interest and risk being "underwater" (owing more than the car is worth) for most of the loan. Stick to 48–60 months if possible.
Tested & Verified
Validated against Edmunds and Bankrate auto loan calculators across 40 test cases.
✓ Math logic verified against primary sources
→ See our verification process