Your monthly car payment depends on the loan amount, interest rate, and loan term. Here’s how to estimate what you’ll pay and how to get the best deal.
Auto Loan Payment Quick Reference
New Car ($35,000 Loan)
| Term | 5% APR | 7% APR | 10% APR | 15% APR |
|---|---|---|---|---|
| 36 months | $1,049 | $1,081 | $1,129 | $1,213 |
| 48 months | $805 | $838 | $887 | $974 |
| 60 months | $660 | $693 | $743 | $832 |
| 72 months | $564 | $598 | $650 | $743 |
| 84 months | $496 | $530 | $583 | $680 |
Used Car ($20,000 Loan)
| Term | 7% APR | 10% APR | 13% APR | 18% APR |
|---|---|---|---|---|
| 36 months | $617 | $645 | $674 | $723 |
| 48 months | $479 | $507 | $537 | $587 |
| 60 months | $396 | $425 | $456 | $508 |
| 72 months | $341 | $371 | $405 | $460 |
Current Auto Loan Rates by Credit Score (2026)
| Credit Score | New Car APR | Used Car APR |
|---|---|---|
| 780+ (Excellent) | 4.8% | 5.9% |
| 740-779 (Very Good) | 5.5% | 7.0% |
| 670-739 (Good) | 6.8% | 9.0% |
| 580-669 (Fair) | 10.5% | 14.5% |
| 300-579 (Poor) | 15.0% | 20.0%+ |
How Much Car Can You Afford?
The 20/4/10 Rule
| Rule | What It Means |
|---|---|
| 20% down payment | Reduces loan amount and risk of being underwater |
| 4-year (48-month) loan max | Limits interest costs |
| 10% of gross income for payment | Total car costs stay manageable |
Affordability by Income
| Gross Annual Income | Monthly Income | Max Car Payment (10%) | Affordable Car Price* |
|---|---|---|---|
| $40,000 | $3,333 | $333 | $15,000-$18,000 |
| $60,000 | $5,000 | $500 | $23,000-$27,000 |
| $80,000 | $6,667 | $667 | $31,000-$36,000 |
| $100,000 | $8,333 | $833 | $39,000-$45,000 |
| $125,000 | $10,417 | $1,042 | $49,000-$56,000 |
*Assumes 20% down, 48-month term, 7% APR
Impact of Down Payment on Monthly Costs
$35,000 Car, 7% APR, 60-Month Loan
| Down Payment | Loan Amount | Monthly Payment | Total Interest | Total Cost |
|---|---|---|---|---|
| $0 (0%) | $35,000 | $693 | $6,580 | $41,580 |
| $3,500 (10%) | $31,500 | $624 | $5,922 | $40,922 |
| $7,000 (20%) | $28,000 | $554 | $5,264 | $40,264 |
| $10,500 (30%) | $24,500 | $485 | $4,606 | $39,606 |
A 20% down payment saves $1,316 in interest and reduces the monthly payment by $139 compared to zero down.
True Cost of a Longer Loan Term
$30,000 Loan at 7% APR
| Loan Term | Monthly Payment | Total Interest | Total Cost | Savings vs. 84-month |
|---|---|---|---|---|
| 36 months | $926 | $3,350 | $33,350 | $5,160 |
| 48 months | $719 | $4,491 | $34,491 | $4,019 |
| 60 months | $594 | $5,657 | $35,657 | $2,853 |
| 72 months | $511 | $6,909 | $36,909 | $1,601 |
| 84 months | $454 | $8,510 | $38,510 | $0 |
Choosing 48 months over 84 months costs $265 more per month but saves $4,019 in interest.
Tips for Getting the Best Auto Loan
- Get preapproved before visiting the dealer—gives you negotiating leverage
- Check credit unions—rates are often 1-2% lower than banks or dealers
- Negotiate the total price, not the monthly payment—dealers stretch terms to hit any monthly number
- Avoid dealer add-ons—extended warranties, paint protection, and gap insurance are usually overpriced
- Consider certified pre-owned—manufacturer warranty at used car prices
- Make a down payment of 20%+—reduces interest and prevents being underwater
The Bottom Line
Aim for a 48-60 month loan with at least 20% down. Get preapproved from a bank or credit union before visiting a dealer, and negotiate the out-the-door price rather than a monthly payment. On a $30,000 loan, choosing a 48-month term over 84 months saves over $4,000 in interest.
Related Calculators & Guides
- Car Affordability Calculator — Find out how much car you can afford based on your income
- Cost of Owning a Car — Full breakdown of car ownership costs
- Average Car Payment by State — See typical car payments across the US
- Personal Loan Calculator — Compare personal loan vs auto loan rates
- Debt-to-Income Ratio Calculator — Check how a car payment affects your DTI
- Credit Score Guide — How your score affects auto loan rates