Auto loan calculator
Calculate your monthly car payment, total interest, and compare loan terms before you sign.
Vehicle and loan details
Loan term (months)
Frequently asked questions
Common questions about auto loans and car financing.
- How does an auto loan work?
- An auto loan is a secured loan used to purchase a vehicle. The car itself serves as collateral. You borrow a set amount from a lender and repay it in fixed monthly installments over a predetermined term (typically 36 to 84 months). Each payment consists of principal (paying down the loan balance) and interest (the cost of borrowing). The interest rate depends on your credit score, loan term, and whether the vehicle is new or used.
- What factors affect my auto loan interest rate?
- Several factors influence your rate: credit score (higher scores get lower rates), loan term (shorter terms usually have lower rates), new vs. used vehicle (new cars typically qualify for lower rates), down payment size (larger down payments reduce lender risk), and the lender you choose. Shopping around and getting pre-approved from multiple lenders can help you secure the best rate.
- How much should I put down on a car?
- Financial experts recommend the 20/4/10 rule: put at least 20% down, finance for no more than 4 years, and keep total transportation costs under 10% of gross income. A larger down payment reduces your loan amount, monthly payment, total interest paid, and the risk of being "upside down" (owing more than the car is worth).
- Is it better to buy a new or used car financially?
- Used cars generally offer better value because new cars depreciate roughly 20% in the first year alone. However, new cars come with manufacturer warranties, potentially lower interest rates, and the latest safety features. A 2-3 year old certified pre-owned vehicle often strikes the best balance between value and reliability.
- What is GAP insurance and do I need it?
- Guaranteed Asset Protection (GAP) insurance covers the difference between what you owe on your loan and your car's actual cash value if it's totaled or stolen. It is especially important if you made a small down payment, have a long loan term (60+ months), or drive a vehicle that depreciates quickly. Without GAP coverage, you could owe thousands even after an insurance payout.
Disclaimer
This calculator provides estimates for informational purposes only and does not constitute financial advice. Actual loan terms, interest rates, and payments may vary based on your credit profile, lender policies, and other factors. Sales tax calculations are simplified and may not reflect your exact local tax situation. Always consult with a qualified financial advisor or lender before making financing decisions. Warren AI is not a lender and does not guarantee any loan terms or rates.
By the numbers
What the data says
- Q2 2025
$1.21 trillion
Outstanding credit card balances in the US
5.9% higher than a year earlier
Source: Federal Reserve Bank of New York, Household Debt and Credit Report - February 2026
21.52%
Average interest rate on credit card accounts that carry a balance
Commercial bank cards assessed interest
Source: Federal Reserve, G.19 Consumer Credit - Q2 2025
4.4%
Share of all household debt in some stage of delinquency
Source: Federal Reserve Bank of New York, Household Debt and Credit Report
National figures from the sources shown, as of the period on each card. They are context, not a forecast or advice for your situation.
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