Auto Loan Prequalification Calculator

Before you walk into a dealership, the Auto Loan Prequalification Calculator gives you a realistic picture of how much car financing you could be approved for based on your financial profile. Enter your annual income, credit score, monthly debt obligations (mortgage/rent, credit cards, other loans), down payment, and loan term to get your estimated loan amount and maximum car price. Secondary outputs include your estimated monthly payment, debt-to-income ratio, and estimated APR based on your credit tier.

Student loans, personal loans, etc.

Results

Estimated Loan Amount

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Estimated Monthly Payment

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Maximum Car Price

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Debt-to-Income Ratio

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Estimated APR

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Frequently Asked Questions

What is the interest rate on a car loan?

Auto loan interest rates vary based on your credit score, loan term, and lender. Rates typically range from 3% to 18%, with excellent credit scores qualifying for the lowest rates.

How does my credit score affect my auto loan?

Your credit score is one of the main factors lenders use to determine your interest rate and loan amount. A higher score can help you secure a better rate and lower monthly payments.

How much car can I afford based on my income?

Financial experts recommend keeping your total monthly car payment under 10-15% of your after-tax income. This calculator considers your debt-to-income ratio to provide a realistic estimate.

What is debt-to-income ratio and why does it matter?

Your debt-to-income ratio is the percentage of your monthly income that goes toward debt payments. Lenders typically prefer a DTI below 36% for auto loans, including the new car payment.

Should I put money down on an auto loan?

A larger down payment can reduce your monthly payment, lower your interest rate, and help you avoid being upside-down on the loan. Most experts recommend at least 10-20% down.

Does prequalification hurt my credit score?

Soft credit inquiries for prequalification typically don't affect your credit score. However, formal loan applications may result in a hard inquiry that can temporarily lower your score.

What's the difference between APR and interest rate?

The interest rate is the cost of borrowing money, while APR includes the interest rate plus additional fees and costs, giving you a more complete picture of the loan's cost.