Estimate your potential auto loan interest rate based on your credit score and other factors.
36 months
48 months
60 months
72 months
84 months
700
Excellent (781-850)
Very Good (700-780)
Good (620-699)
Fair (580-619)
Poor (300-579)
Your Estimated Monthly Payment: $0.00
Estimated Interest Rate: N/A
Understanding Your Auto Loan Estimate
This calculator provides an estimate of your monthly auto loan payment and the potential interest rate you might qualify for based on your credit score and other crucial factors. Auto loan approval and the interest rate offered are heavily influenced by your creditworthiness, the loan amount, the loan term, and the vehicle's price.
How the Calculation Works
The core of this estimation relies on a standard auto loan payment formula, but the key variable is the interest rate, which is dynamically adjusted based on the provided credit score and its corresponding range.
Loan Amount Calculation: The initial loan amount is determined by subtracting your down payment from the vehicle's price. Loan Amount = Vehicle Price - Down Payment
Interest Rate Estimation: This is the most dynamic part. Based on the credit score range selected, a baseline Annual Percentage Rate (APR) is assigned. Lenders use credit scores to gauge risk; higher scores indicate lower risk, thus generally leading to lower interest rates. The typical APRs used here are illustrative and can vary significantly by lender and market conditions.
Monthly Payment Calculation: Once the loan amount, estimated APR, and loan term are established, the monthly payment is calculated using the standard loan amortization formula:
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1]
Where:
M = Monthly Payment
P = Principal Loan Amount (Vehicle Price – Down Payment)
i = Monthly Interest Rate (Annual Rate / 12)
n = Total Number of Payments (Loan Term in Months)
Credit Score Impact on Auto Loans
Your credit score is a three-digit number that represents your credit risk to lenders. For auto loans, it plays a pivotal role in determining:
Loan Approval: A higher credit score significantly increases your chances of loan approval.
Interest Rate: This is where the biggest savings can occur. Even a small difference in interest rate can save you thousands of dollars over the life of the loan. For example, a 1% difference on a $25,000 loan over 60 months can mean saving over $1,500.
Loan Terms: Lenders might offer more flexible repayment terms to borrowers with excellent credit.
Poor (300-579): May face very high rates, potentially 20.0% APR and above, or may require a co-signer or a down payment.
Please note: These APR ranges are general guidelines and can vary widely based on the lender, the specific vehicle (new vs. used), market conditions, your income, employment history, and other lending criteria. This calculator provides an *estimate* for educational purposes only.
Using the Calculator Effectively
1. Enter Vehicle Details: Input the price of the car you're interested in and how much you plan to put down.
2. Select Loan Term: Choose the number of months you prefer to repay the loan. Shorter terms mean higher monthly payments but less total interest paid. Longer terms mean lower monthly payments but more total interest.
3. Identify Your Credit Score Range: Select the range that best fits your credit score. This is the primary driver for the estimated interest rate.
4. Calculate: Click the button to see your estimated monthly payment and the corresponding interest rate.
By using this tool, you can get a clearer picture of your potential auto loan costs and understand how vital a good credit score is in securing favorable financing.
var creditScoreSlider = document.getElementById("creditScore");
var creditScoreValueSpan = document.getElementById("creditScoreValue");
var creditScoreRangeSelect = document.getElementById("creditScoreRange");
// Update slider value display and sync with select
creditScoreSlider.oninput = function() {
creditScoreValueSpan.innerHTML = this.value;
updateCreditScoreRangeFromSlider(this.value);
}
// Update slider and value display when select changes
creditScoreRangeSelect.onchange = function() {
updateSliderFromCreditScoreRange(this.value);
}
function updateCreditScoreRangeFromSlider(score) {
var rangeSelect = document.getElementById("creditScoreRange");
if (score >= 781) {
rangeSelect.value = "excellent";
} else if (score >= 700) {
rangeSelect.value = "very-good";
} else if (score >= 620) {
rangeSelect.value = "good";
} else if (score >= 580) {
rangeSelect.value = "fair";
} else {
rangeSelect.value = "poor";
}
creditScoreValueSpan.innerHTML = score; // Ensure the displayed score is always the slider value
}
function updateSliderFromCreditScoreRange(range) {
var score;
if (range === "excellent") {
score = 781; // Set slider to the lower bound of excellent
} else if (range === "very-good") {
score = 700; // Set slider to the lower bound of very good
} else if (range === "good") {
score = 620; // Set slider to the lower bound of good
} else if (range === "fair") {
score = 580; // Set slider to the lower bound of fair
} else { // poor
score = 300; // Set slider to the lower bound of poor
}
creditScoreSlider.value = score;
creditScoreValueSpan.innerHTML = score;
}
function calculateAutoLoan() {
var vehiclePrice = parseFloat(document.getElementById("vehiclePrice").value);
var downPayment = parseFloat(document.getElementById("downPayment").value);
var loanTermMonths = parseInt(document.getElementById("loanTerm").value);
var creditScoreRange = document.getElementById("creditScoreRange").value;
var estimatedAPR = 0;
var monthlyPayment = 0;
var estimatedRateDisplay = "N/A";
// — Input Validation —
if (isNaN(vehiclePrice) || vehiclePrice <= 0) {
alert("Please enter a valid Vehicle Price.");
return;
}
if (isNaN(downPayment) || downPayment vehiclePrice) {
alert("Down payment cannot be greater than the vehicle price.");
return;
}
var loanAmount = vehiclePrice – downPayment;
// — Estimate APR based on credit score range —
switch (creditScoreRange) {
case "excellent":
estimatedAPR = 0.055; // 5.5%
estimatedRateDisplay = "5.5% – 7.0%";
break;
case "very-good":
estimatedAPR = 0.085; // 8.5%
estimatedRateDisplay = "7.0% – 10.0%";
break;
case "good":
estimatedAPR = 0.125; // 12.5%
estimatedRateDisplay = "10.0% – 15.0%";
break;
case "fair":
estimatedAPR = 0.175; // 17.5%
estimatedRateDisplay = "15.0% – 20.0%";
break;
case "poor":
estimatedAPR = 0.225; // 22.5%
estimatedRateDisplay = "20.0%+";
break;
default:
estimatedAPR = 0.085; // Default to very good if somehow unset
estimatedRateDisplay = "7.0% – 10.0%";
break;
}
// — Calculate Monthly Payment using Amortization Formula —
// Ensure loan amount is positive
if (loanAmount > 0) {
var monthlyInterestRate = estimatedAPR / 12;
var numberOfPayments = loanTermMonths;
// Handle cases where monthly interest rate is very close to zero to avoid division by zero or precision issues
if (monthlyInterestRate < 1e-9) { // Effectively 0% interest
monthlyPayment = loanAmount / numberOfPayments;
} else {
monthlyPayment = loanAmount * (monthlyInterestRate * Math.pow(1 + monthlyInterestRate, numberOfPayments)) / (Math.pow(1 + monthlyInterestRate, numberOfPayments) – 1);
}
} else {
monthlyPayment = 0; // If loan amount is 0 or less, monthly payment is 0
}
// — Display Results —
var resultMonthlyPayment = document.querySelector("#result p:first-child span");
var resultInterestRate = document.querySelector("#result p:nth-child(2) span");
resultMonthlyPayment.innerHTML = "$" + monthlyPayment.toFixed(2);
resultInterestRate.innerHTML = estimatedRateDisplay;
}
// Initialize the calculator on load
document.addEventListener('DOMContentLoaded', function() {
// Trigger the update function once to set initial values if needed
updateCreditScoreRangeFromSlider(parseInt(creditScoreSlider.value));
calculateAutoLoan(); // Calculate initial estimate based on default values
});