CAR PAYMENT
About this calculator
This car payment calculator estimates your monthly auto loan payment. Enter the vehicle price, your down payment in cash, the trade-in value of your current vehicle (if any), the loan term in months, and the interest rate. The calculator returns your monthly principal and interest payment along with the total amount financed and total interest paid over the life of the loan. Sales tax varies by state — some states tax the full price, others tax price minus trade-in. If you want to include sales tax, add it to the vehicle price.
How to use this calculator
Enter the vehicle price as listed (out-the-door price minus tax/title/registration if you want pure loan math — see common mistakes). Subtract your down payment in cash and the trade-in value of your current vehicle to get the amount actually financed. Pick a loan term in months — 60 (5 years) is the most common; 72 and 84 lower the monthly payment but extend interest payments and increase total cost. Enter the APR (annual percentage rate) the dealer or bank quoted you.
The calculator returns the monthly P&I payment plus the amount financed, total interest paid, and total cost over the loan. New-car APRs in 2026 typically run 7–9% with good credit; used-car loans run 9–12%. Subprime (sub-650 credit) can hit 18–25% — at those rates, used cars or longer terms become very expensive.
Worked example
$35,000 vehicle, $5,000 down, $3,000 trade-in, 60 months at 8.5% APR:
Amount financed: $35,000 − $5,000 − $3,000 = $27,000. Monthly payment: $554. Total paid (loan only): $33,250. Total interest: $6,250.
Total cost including down + trade: $41,250 — roughly 18% above sticker price.
Same loan at 72 months: $474/month, $34,123 total paid, $7,123 total interest. Lower payment, $873 more interest, longer underwater period (the truck is worth less than the loan balance for the first 36–48 months).
Same loan at 36 months: $852/month, $30,667 total paid, $3,667 total interest — best math, but $300/month higher payment than the 60-month term.
Common mistakes & waste factors
Focusing on monthly payment instead of total cost. Dealers will stretch any term to fit your payment goal — the result is more interest and longer underwater periods. Always compare total interest paid across term lengths.
Forgetting tax, title, registration, doc fees. These add 8–12% to the total cost and aren't included in the calculator. State tax varies; doc fees can be $300–$700.
Rolling negative equity into a new loan. If you owe more on your trade-in than it's worth, the dealer can roll the difference into the new loan — but you start the new loan already underwater, often by thousands.
Buying GAP insurance and extended warranties from the dealer. Both are profit centers — typically 50–100% cheaper from your insurer or a third party. Decline at the F&I desk and shop separately.
Rules of thumb
60 months is the sweet spot for total cost. 72–84 months minimizes monthly payment but maximizes total interest.
20% down minimum is the traditional rule — keeps you above water on depreciation. Less than 20% down + 72-month term = guaranteed to be upside-down for years.
New-car APRs (2026): 6–7% excellent credit, 8–9% average, 11–15% subprime.
Used-car APRs: typically 2–3% higher than new at the same credit tier.
Total auto cost (loan + insurance + fuel + maintenance) typically runs 15–25% of take-home pay for sustainable car ownership.