Used Car Loan Calculator
Used-car loans often carry higher rates than new-car loans, and lenders may limit the age or mileage of the vehicle. Enter the actual quote you were given; the sample numbers are only a starting point.
Used Car Loan calculator
Move the sliders or type your own numbers. Sample amounts and rates are placeholders — enter the figures from your lender’s Loan Estimate or offer.
📊 Principal and interest by year
Early payments are mostly interest; the principal share grows every year. Hover or tap a bar for details.
📅 Amortization schedule
Year-by-year summary — tap “+” to see every month. Download the full monthly schedule as a spreadsheet.
⚡ Extra payments — how much can you save?
Test a one-time extra payment, a fixed extra amount each month, or a yearly lump sum. Extra principal payments cut the balance that interest is charged on, so earlier ones save the most.
🔄 Refinance break-even
Enter a new rate, term and closing costs to see the new payment and how many months it takes to recover the costs.
⚖️ Compare loan offers side by side
Enter up to three offers. The best deal has the lowest total cost (interest plus fees), not necessarily the lowest rate or payment.
🏡 Affordability — how much can you borrow?
Lenders compare your monthly debt payments to your gross monthly income (debt-to-income, or DTI). This shows the payment your income supports at the DTI you choose.
ℹ️ About used car loan payments
Used-car loans often carry higher rates than new-car loans, and lenders may limit the age or mileage of the vehicle. Enter the actual quote you were given; the sample numbers are only a starting point.
| Topic | Details |
|---|---|
| Rates | Usually higher than new-car loans; your credit profile has a large effect |
| Vehicle limits | Lenders may cap vehicle age or mileage |
| Before you buy | Get a vehicle history report and an independent inspection |
Tips to lower your used car loan cost
- Get pre-approved so you know your rate before negotiating the price.
- Keep the term short enough that the loan ends well before major repairs are likely.
- Compare a credit-union quote with dealer financing.
📝 Documents you need and how to apply for a used car loan
- Verifiable income and acceptable credit for the lender
- A vehicle within the lender’s age and mileage limits
- Proof of insurance
- Driver’s license and Social Security number
- Proof of income and residence
- Vehicle details (VIN, mileage, seller information)
- A vehicle history report and inspection results, which help you decide before buying
- Proof of insurance
How to apply, step by step
- Get pre-approved before you shop.
- Get a vehicle history report and an independent inspection.
- Compare the dealer’s financing with your pre-approval and a credit-union quote.
- Choose a term that ends before major repairs are likely.
- Review the contract, then complete title and registration.
Private-party purchases may need the lender’s approval before you pay the seller; ask your lender. Every lender sets its own requirements, so confirm the list with the lender before you apply.
🧮 How a loan payment is calculated
Worked example
| Step | Value |
|---|---|
| Loan amount (P) | $22,000 |
| Monthly rate (r) | 9% ÷ 12 = 0.007500 |
| Payments (n) | 5 × 12 = 60 |
| (1 + r)n | 1.5657 |
| Monthly payment (principal & interest) | $456.68 |
| Total interest | $5,401 |
| Total of payments | $27,401 |
How the term changes the payment ($22,000 at 9%)
| Term | Payment | Total interest | Interest vs loan |
|---|---|---|---|
| 1 year | $1,923.93 | $1,087 | 5% |
| 2 years | $1,005.06 | $2,122 | 10% |
| 3 years | $699.59 | $3,185 | 14% |
| 4 years | $547.47 | $4,279 | 19% |
| 5 years | $456.68 | $5,401 | 25% |
| 7 years | $353.96 | $7,733 | 35% |
How the rate changes the payment ($22,000 for 5 years)
| Rate | Payment | Total interest |
|---|---|---|
| 8% | $446.08 | $4,765 |
| 8.5% | $451.36 | $5,082 |
| 9% | $456.68 | $5,401 |
| 9.5% | $462.04 | $5,722 |
| 10% | $467.43 | $6,046 |
Loan calculator FAQs
Can I refinance a car loan later?
Often yes — if your credit improves or rates fall, use the refinance tool below to check the break-even point.
What is amortization?
Amortization is paying off a loan with fixed payments over time. Each payment covers that month’s interest and reduces the principal; over time a larger share goes to principal.
Is the result exactly what my lender will charge?
It is a close estimate. Lenders may calculate interest daily, use a different first-payment date or round differently. Your loan documents and repayment schedule are final.
What is APR?
The annual percentage rate expresses the yearly cost of a loan, including interest and certain fees. Lenders must show it in their Truth in Lending disclosures.
Should I make extra payments?
Extra payments toward principal reduce total interest and can shorten the loan. Check that there is no prepayment penalty and that extra money is applied to principal.
What happens if I miss a payment?
You may owe a late fee, and lenders can report late payments to the credit bureaus, which can lower your credit score. Contact your lender early if you expect trouble paying.
Results are illustrations based on the numbers you enter, not a loan offer, pre-approval or financial advice. Loan terms, rates and fees vary by lender and borrower.