Enter your Annual Income, Credit Score, existing debts like Monthly Mortgage/Rent and Credit Card Payments, plus your Down Payment and preferred Loan Term to get your Estimated Loan Amount, Maximum Car Price, Monthly Payment, and the Debt-to-Income Ratio and Estimated APR a lender is likely to offer you.
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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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.
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.
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.
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.
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.
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.
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.