Car loan interest rate calculator based on credit score

Use this auto loan calculator when comparing available rates to estimate what your car loan will really cost. Simply enter the amount you wish to borrow, the length of your intended loan, vehicle type and interest rate. The calculator will estimate your monthly payment to help you determine how much car you can afford.

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Prepare for additional costs

Unfortunately, the final price you pay will be higher than the sticker that you see on the car window. You must factor in expenses such as taxes, title fees and even future vehicle maintenance when calculating vehicle cost.

A longer-term loan might not be worth it

Loan repayment terms can range from 24 to 84 months. While a longer-term loan will mean a lower monthly cost, the longer the lifetime of the loan is the more that you will pay in interest. Also, consider that a longer term means that you could be stuck with that vehicle for up to seven years.

Consider refinancing your current car loan

Refinancing your current loan can be a great option to save money while keeping your vehicle. Consider this option if you first signed off at a dealership or if you have improved credit and can likely receive a better rate and term.

Buying vs. leasing

Determining if you want to buy or lease your new car requires consideration of the number of miles you plan to clock on the vehicle odometer as well as how much you can afford each month.

What leasing is

When you lease a car you have the right to use the vehicle but do not have full ownership. Think of it as borrowing the car for a set amount of time, usually three or four years, but not holding complete rights to the car. Leasing also carries specific restrictions in terms of use. With a lease, you will be restricted to a certain number of miles driven and the expectation to return the vehicle in mint condition — or incur fees.

You likely will find leasing options through dealerships, and it can be a great option if you have your sights set on a specific model. Leasing is worth exploring if you are interested in driving several, more expensive vehicles every few years rather than signing off on just one. Leasing also carries incentives, such as the ability to drive a higher-end vehicle, cash rebates, manufacture warranty and subsidized residual values.

How to decide between buying and leasing

To decide if you should lease or buy your next vehicle you should consider three main factors: the amount you drive, the purpose of the vehicle and how much you can afford to spend. Buying is best if you want full ownership of the vehicle and can afford a higher monthly cost. Leasing is right for you if you appreciate the flexibility in vehicle types and can stick to the mileage restriction.

Just as with buying a vehicle, you will have a monthly payment over the life of your lease. But when it comes to buying there is light at the end of the tunnel in terms of ownership. Leasing on the other hand, unless you plan for a lease buyout, you will simply have the vehicle for a set time with no sole possession in sight.

Leasing comes with quite a few caveats that can lead to a damaged credit report or money loss. If leasing is the right route for your needs, consider common pitfalls before signing off.

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Length of loan(months) 12

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New Loan Terms in Months 12

A car loan calculator can help you estimate the monthly payment, interest rate and loan term you can afford before you purchase a new or used car. Getting these estimates can give you a good idea of how much you’d pay overall for an auto loan. It can also help you negotiate with loan providers for more favorable terms.

We at the Home Media reviews team will explain why an auto loan calculator is important and how to use one. We’ll also discuss providers that are worth considering and ranked high in our reviews of the best auto loan rates and best auto refinance rates of 2022.

Car Loan Calculator: Overview

A car loan calculator is a tool you can use to analyze your car loan options before making a purchase. With a calculator, you can determine how large a loan you can afford to take on and, as a result, how much car you can afford. It can also be used to ensure the dealership or lender you finance your new or used car with isn’t trying to inflate your monthly payment.

Most auto loan calculators ask for standard information, such as:

Price of the car you wish to purchase
Down payment (if any)
Credit score
Interest rate
Loan term

Keep in mind that an auto loan payment calculator likely can’t tell you what loan terms you qualify for based on this information. You may or may not find similar terms from the dealership, bank or credit union you finance your car purchase with.

Factors That Affect Car Loan Rates

Several factors will impact your auto loan rate from a dealership or third-party lender, including:

Credit history
Loan term
Loan amount
Debt-to-income ratio
Age of the vehicle you wish to purchase
Down payment amount
Lender
Current market rates
Current dealership promotions

Note that new cars typically have lower rates than used cars because they are less risky for lenders. Making a larger down payment may also get you a lower auto loan rate.

How to Use a Car Loan Calculator

An auto loan calculator considers the car price, loan term and interest rate to tell you what your monthly payment would be. You can adjust factors in the calculator, such as how many months you want to pay your car loan, to see how your monthly payment would change. We explain the parts of a car loan calculator in further detail below.

Car price: With some calculators, you’ll only enter the amount you want to borrow. If a calculator also asks for the purchase price of the vehicle, subtract the value of any down payment, trade-in or manufacturer or dealer discounts and rebates. This will determine the total loan amount.

Loan term: This is the number of months you have to repay your car loan. In general, choosing a longer term will lower your monthly payment, but you’ll pay more in interest. Having a shorter loan term means a higher monthly payment but less interest paid overall.

Interest rates: Some auto loan calculators ask for your credit score to help determine what interest rate you may qualify for. If the calculator you’re using doesn’t include this feature, you can check online lenders and banks for rates.

Trade-in value and down payment: Enter the total cash value of your current vehicle or the amount of your down payment in these fields. You can use reputable websites like Kelley Blue Book or CarMax to find your vehicle’s trade-in or resale value.

After you input the details above, the auto loan calculator will typically display the following results:

Monthly payment: This is the amount you would pay each month for the duration of your car loan. Part of each monthly payment goes toward the actual amount owed, called principal, and the other part goes toward interest.

Principal amount: This is the amount of money you’ll borrow to finance your auto purchase.

Total interest paid: This is the total amount of interest you’ll pay over the life of the loan. The longer the loan term or the higher the interest rate, the more you’ll pay.

What are Average Auto Loan Rates?

The auto loan rates you’re offered depend largely on your credit score. Borrowers with credit scores higher than 660 tend to receive lower interest rates than those who have credit scores below that number.

The graph below shows average interest rates for new and used cars, according to Experian’s Q2 2022 State of the Automotive Finance Market report.

Explanation of Auto Loan Terms

Here are explanations of some popular auto loan terms you may see when using a car loan calculator or shopping around for auto loan rates:

Purchase price: This is the actual amount you pay to purchase your vehicle, after any discounts or rebates. This differs from your loan amount. To help you figure out how much you can spend on your vehicle purchase, our experts recommend that your monthly auto loan payment be no more than 10% to 15% of your take-home pay. Your total monthly costs for your vehicle, including insurance, should total no more than 20% of your monthly income.
Down payment: Saving more money before purchasing a car can make the overall cost more affordable. Placing a down payment on your new or used car will allow you to have a lower interest rate, reduced monthly payments and a shorter loan term.
Interest rate vs. annual percentage rate (APR): The interest rate is the percentage the lender charges for the loan, while the APR combines the interest rate with any up-front fees.

What a Car Loan Calculator Can Tell You

A car loan calculator can show you your potential monthly payment, as well as the bigger picture of how much you’ll pay for your new or used car overall. However, there are other costs beyond simply your interest rate.

How to Calculate APR on a Car Loan

In many cases, car loan calculators don’t reflect state and local sales taxes or registration fees. Remember, your APR is a combination of your interest rates and any fees or discounts your lender includes. Other variables often left out of car loan calculators include:

Application fee: Some lenders may charge a fee for submitting a loan application.
Origination fee: This is a flat fee or a percentage of the loan amount that the lender charges for processing a loan.
Payment-related fees: This includes late fees, returned-check fees and fees for certain payment methods.
Prepayment penalty: Some lenders charge a fee if you pay your car loan off early. It’s meant to give the lender some of the money it would lose out on by not collecting interest for the duration of your original loan term.
Discounts: Your lender may offer a discount, such as for setting up automatic payments. This is included in your APR.

You can search online to find out about lenders’ fees or contact them directly to learn about costs in your area.

An auto loan calculator can also be used to compare lender offers and try different interest rates and loan terms. The knowledge you gain from using this tool can help you negotiate a fair deal with a lender or dealership to get the best auto loan rate for your situation.

Our Recommendations for Auto Loans

When you want the best auto loan rates, a car loan estimator is a great resource for making comparisons. We recommend checking out Auto Approve and myAutoloan, both of which ranked high in our review of the best auto loan rates of 2022.

Auto Approve: Top Choice for Refinancing

Auto Approve is one of our top choices for the best auto loan rates. It has a strong reputation among industry organizations as a refinance auto loan specialist. The company’s lease buyout option makes it a viable choice for people looking to purchase vehicles. Auto Approve rates start at 2.94% APR for refinancing, though only borrowers with high credit scores can access these rates.

myAutoloan: Most Popular Marketplace

Acting as an online marketplace, myAutoloan lets you comparison shop for the best auto loan rates from many lenders. You can enter your personal information into its online form and receive instant loan offers. Borrowers can find APRs as low as 3.99% for new auto loans, 4.24% for used auto loans and 2.49% for refinancing. The company has strong customer service ratings, earning an A+ rating from the Better Business Bureau and a 4.2-star rating out of 5.0 from Trustpilot.

Keep reading: myAutoloan review

Frequently Asked Questions

Our Methodology

Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best auto loan companies. We collected data on dozens of loan providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the companies that scored the most points topping the list.

Here are the factors our ratings take into account:

Reputation (25% of total score): Our research team considered ratings from industry experts and each lender’s years in business when giving this score.
Rates (25% of total score): Auto loan providers with low APRs and high loan amounts scored highest in this category.
Availability (25% of total score): Companies that cover a variety of circumstances are more likely to meet consumer needs.
Customer Experience (25% of total score): This score is based on customer satisfaction ratings and transparency. We also considered the responsiveness and helpfulness of each lender’s customer service team.

*Data accurate at time of publication.

How do I find out my interest rate for a car loan?

You can usually find the interest rate at the top or bottom of the statement along with your car loan number, address, name, and other information. Your original car loan statement should also have the interest rate. Usually, at the beginning of the document, you should find your repayment terms.

Is interest rate based on credit score?

“Your credit score is one factor that can affect your interest rate,” according to the CFPB. “In general, consumers with higher credit scores receive lower interest rates than consumers with lower credit scores.”