# Auto Loan Calculator

Use our free car loan calculator to estimate your monthly payments. See how the vehicle price, loan term, down payment, and interest rate impact how much you need to pay each month.

$3 years % Your estimated monthly payment$585
Total principal paid
$20,000 Total interest paid$1,066
Total loan payment

## How long will your loan be for?

Car loan terms are usually spoken about in terms of months — 36 months, 48 months, 60 months, etc. These correspond to 3, 4, and 5 years. Most auto loans are for 4 to 6 years or 48 to 72 months.

The average loan new for new cars is around 70 months (or 5.8 years) and around 36 months (or years 3 years) for used and leased vehicles.

With longer loan terms, you will pay less each month, but more overall as your interest payments will be greater. Shorter loan terms have bigger monthly payments, but your overall loan costs will be reduced because you will pay less in interest over the life of the loan.

## What interest rate will you pay?

The average annual interest rate for new car loans is around 5.45%, according to the U.S. Federal Reserve. Your interest rate will vary based on the lender and your credit score.