What Bankrate's auto loan calculator does
Bankrate's auto loan calculator takes three pieces of information — the loan amount, interest rate, and loan term in months — and shows you what your monthly payment will be. It also breaks down how much of each payment goes toward interest versus principal, and displays the total interest you'll pay over the life of the loan. The calculator is free to use and doesn't require you to enter personal information or create an account.
The calculator is useful before you visit a dealership or lender, because it lets you see how different loan amounts and interest rates affect your monthly budget. It's also helpful after you've received loan offers, so you can verify the payment amounts the lender quoted you are mathematically correct.
Key Takeaways
- Bankrate's calculator requires only the loan amount, interest rate, and loan term — you can experiment with different numbers to see how each one changes your payment.
- The calculator shows both your monthly payment and the total interest paid over the full loan, so you can compare the real cost of different loan offers.
- Interest rates vary by lender, credit score, and loan term, so use the calculator with a range of rates to understand what you might actually pay.
- The calculator does not factor in taxes, fees, insurance, or down payments — those are separate costs you'll need to budget for.
How to enter your loan information
Start by going to Bankrate.com and finding the auto loan calculator tool. You'll see three main input fields. In the first field, enter the loan amount — this is the total dollar amount you're borrowing, not the car's price. If you're buying a $25,000 car and putting $5,000 down, your loan amount is $20,000.
In the second field, enter the interest rate as a percentage. If a lender quoted you 6.5%, type 6.5. This is where you can experiment: try entering different rates to see how a better or worse rate would change your payment. In the third field, enter the loan term in months. A typical auto loan is 36, 48, 60, or 72 months. Once you've entered all three numbers, the calculator updates automatically to show your monthly payment.
Understanding the payment breakdown
Below the monthly payment amount, Bankrate shows an amortization table — a month-by-month or year-by-year breakdown of how much of each payment goes to interest and how much goes to principal. Early in the loan, most of your payment covers interest. As time passes, more of each payment reduces what you actually owe on the car.
The calculator also displays the total interest you'll pay across the entire loan. This number often surprises people. On a $20,000 loan at 6.5% over 60 months, you might pay roughly $3,400 in interest — meaning the car actually costs you $23,400 by the time you're done. Seeing this total helps you decide whether a longer loan term (lower monthly payment, higher total interest) or shorter term (higher monthly payment, lower total interest) makes sense for your situation.
Comparing different loan scenarios
The real power of the calculator is running multiple scenarios. Open it in one browser tab, then try different combinations: a $20,000 loan at 5% for 48 months, then the same loan at 6.5% for 60 months. Write down the monthly payments and total interest for each. This shows you concretely what you gain or lose by shopping for a better rate, or by stretching the loan longer.
You can also use it to work backward. If you know you can afford $400 a month, you can experiment with different loan amounts and terms until you find a combination that hits that payment. This helps you figure out what price range of car you can actually manage before you start shopping.
What the calculator doesn't include
Bankrate's calculator shows only the loan payment itself. It does not factor in sales tax, registration fees, insurance, maintenance, or fuel. These are real costs you'll pay on top of the monthly loan payment. In many states, sales tax on a car is 5% to 10% of the purchase price, and that amount is often rolled into the loan, raising your total loan amount.
The calculator also assumes a fixed interest rate — the rate stays the same for the entire loan. Some lenders offer variable-rate auto loans where the rate can change, but these are uncommon for new cars. If you're considering a variable-rate loan, the calculator won't show you what happens if rates rise.
How interest rates affect your payment
Interest rate is the single biggest lever on your monthly payment. On a $20,000 loan over 60 months, the difference between a 4% rate and a 7% rate is roughly $60 per month — that's $3,600 over the life of the loan. This is why shopping around with multiple lenders matters. Banks, credit unions, and online lenders often quote different rates for the same borrower.
Your credit score is the main factor lenders use to set your rate. Someone with a score above 750 might get 4.5%, while someone with a score of 650 might get 7%. If your score is lower than you'd like, you have options: wait a few months while you pay down other debts and improve your score, look for a co-signer with better credit, or accept a higher rate now and refinance later if your score improves. Use the calculator to see what different rates would cost you, so you know whether waiting or refinancing is worth the effort.
Using the calculator with real loan offers
Once you've received actual loan offers from lenders, plug those numbers into the calculator to verify the math. A lender should give you the loan amount, interest rate, and term — enter those exact figures and confirm the monthly payment matches what they quoted. If it doesn't, ask the lender to explain the difference. Sometimes the difference is a fee they're rolling into the loan, or a down payment they factored in differently than you expected.
The calculator is also useful for comparing offers side by side. If one lender quotes you $20,000 at 5.5% for 60 months and another quotes $20,000 at 6% for 48 months, the calculator shows you the monthly payment and total interest for each, making the comparison clear. The lower monthly payment isn't always the better deal if you're paying significantly more interest overall.
Frequently Asked Questions
Can I use the calculator if I don't know my interest rate yet?
Yes. Use the calculator with a range of rates to see what you might pay. If you have good credit, try 4% to 5.5%. If your credit is fair, try 6% to 7.5%. This shows you the ballpark before you talk to lenders. Once you receive actual offers, plug in the real rates.
Does the calculator include my down payment?
No. The calculator uses only the loan amount — the money you're borrowing. If you're putting $5,000 down on a $25,000 car, enter $20,000 as the loan amount. The down payment reduces what you need to borrow, but it's not part of the monthly payment calculation.
What if my interest rate changes during the loan?
Bankrate's calculator assumes a fixed rate that doesn't change. If you have a variable-rate loan, the calculator shows what your payment would be at the current rate, but it won't predict future changes. Most auto loans are fixed-rate, so this is rarely an issue.
Should I choose a shorter or longer loan term?
Use the calculator to see both options. A shorter term (36 or 48 months) means higher monthly payments but less total interest. A longer term (60 or 72 months) means lower monthly payments but more total interest. Choose based on what your budget can handle and how long you plan to keep the car.
Can I use this calculator for a used car loan?
Yes. The calculator works the same way regardless of whether the car is new or used. The only difference is that used car loans sometimes have higher interest rates and shorter maximum terms than new car loans, depending on the lender and the car's age.