Car loan interest rate (APR) calculator
Finance offers are often shown as a monthly payment. Enter the amount financed, the payment and the term from your offer and we work out the yearly interest rate behind it, so you can compare offers on the same footing. The numbers shown are an example.
From the dealer's offer
These are example numbers. Use the figures from your contract or quote.
What the contract says you borrow, with tax and fees rolled in, after your down payment and trade-in.
Interest rate in this offer
9.82% a year
You would pay $10,480.00 in interest over 72 months.
What a lower rate would do
- Your offer
- $590.00 a month at 9.82%
- At 7.82% (2 points lower)
- $558.33 a month
- Saved over the loan
- $2,280.24
Rates depend on your credit, the term and the market. A pre-approval from your bank or credit union gives you a figure to compare, and dealerships can often show you options from several lenders.
If the amount financed is more than the price plus tax and fees, ask what else it includes, such as a protection plan.
Keep going with Uobo
Uobo is your personal car agent. Text it what you need and it does the research and the checks, asks dealerships about availability, condition and price for you, and helps you decide. This is the text you would send:
On a computer? Text (289) 819-4586 from your phone and paste what you copied. Standard message rates apply. Reply STOP any time to stop.
How it works
A loan payment is set by three things: the amount borrowed, the term and the interest rate. If you know the first two and the payment, only one rate fits. We find it by testing rates until the payments exactly repay the amount financed.
Then we show what the same loan would cost at a rate 2 points lower, to put a number on why it is worth comparing offers. We do not call any rate good or bad, because that depends on your credit and the market at the time.
Example: $32,000 over 72 months
A payment of $590 a month for 72 months on $32,000 works out to about 9.8% a year and $10,480 in interest. At about 7.8% (2 points lower), the payment would be $558.33, about $32 a month less, saving around $2,280 over the loan.
What this does not cover
- Use the amount the contract says is financed. If it includes the price of add-ons, the rate shown is the rate on everything, not only the car.
- It assumes equal monthly payments and monthly interest. Contracts with fees, skipped payments or a balloon at the end work differently.
- It is not the lender's official APR figure. Lenders must disclose their own, which can include certain fees.
Common questions
How do I find the interest rate on a car loan?
Your contract must state the rate. If you only have a payment quote, enter the amount financed, the payment and the term here to find the rate they imply, then confirm it with the dealership's finance team.
What is the amount financed?
It is what you actually borrow: the price plus tax and fees, less your down payment and trade-in. It is on the contract, and it can include the cost of extras you agreed to add.
Is my rate good?
That depends on your credit, the term and the market. A pre-approval from your bank or credit union gives you a figure to compare, and dealerships often work with several lenders and can show you other options.
Why might the rate be higher than I expected?
Long terms, lower credit scores and rolled-in extras all raise the rate or the amount financed. Compare the same car and term across offers.