What is a good interest rate on a car loan?

For new cars, 5–7% APR is competitive. For used cars, 7–12% is normal. Credit score below 600 may push rates to 15%+.

Finance

Auto Loan Calculator

Calculate your monthly car payment including sales tax, registration fees, and trade-in equity. See total cost and total interest over the life of the loan.

How to calculate a car payment

The financed amount equals: Vehicle Price + Sales Tax + Fees − Down Payment − Trade-in. Then the standard amortization formula applies to that financed amount over the loan term.

Tips for cheaper auto financing

Get pre-approved from your bank or credit union before visiting the dealer — dealer financing usually marks up the rate.
A 60-month term is a sweet spot; longer terms (72-84 months) put you underwater on the car.
A larger down payment lowers both your payment and your total interest.
Trade-in equity directly reduces the amount you finance.

Frequently asked questions

How is car loan payment calculated?

Standard amortization on the financed amount: price + tax + fees − down − trade-in.

Should I include sales tax?

Yes — sales tax is part of what you finance. Typical US range is 4–10%.

What is a good APR?

New cars 5–7%, used cars 7–12%. Below 600 credit can mean 15%+.