Car Loan Payment Calculator
Estimate a monthly car payment from price, down payment, trade-in, APR, and term, with total interest, total amount paid, payoff date, and a 60-vs-72-month tradeoff.
For the full ownership picture, pair with the Vehicle Total Cost of Ownership Calculator and the how to shop for a car loan guide.
Estimate your car loan payment
Enter the deal numbers, choose a term, and see the monthly payment, total interest, and how a 60-vs-72-month split would shake out.
$579/mo
60-month loan on $30,440 financed at 6.9% APR.
How to use this calculator
Enter the negotiated price, down payment, and trade-in value of your old vehicle. Add the APR you have been quoted (use a pre-approval rate from a credit union or bank, not a guess), the term in months, your state sales-tax rate, and any rolled-in fees. The calculator returns the monthly payment, the total interest you will pay over the life of the loan, the total amount paid, and the payoff date.
Tips for success
- Get pre-approved before the dealer. A 24-hour rate-shop window from a credit union, bank, or online lender lets you compare offers without multiple credit-score hits. Walking in pre-approved also shifts the negotiation from "what monthly payment can you afford" to "what is the actual price."
- Negotiate price separately from financing. Dealers profit from APR markup as well as the markup on the car. Settle the out-the-door price first, then ask if their financing beats your pre-approval. Often it does not.
- Aim for a 10% down payment minimum. Less than that and you start the loan underwater because new cars depreciate roughly 15 to 20 percent in year one. Underwater is fine if you keep the vehicle to payoff; it is brutal if your circumstances change.
- Default to 60-month terms on new cars. 72 and 84-month loans cut the monthly but cost 50 to 80 percent more in total interest, and you stay underwater on the loan for most of the term.
- Roll fees in only if you can swing the math. Doc fee, registration, and title are real costs. Rolling them into the loan adds 5 to 10 dollars per month and a sliver of interest, but keeps your out-of-pocket close to the down payment alone.
Common mistakes
- Shopping by monthly payment instead of total cost. A 600 dollar payment at 84 months is not better than a 700 dollar payment at 60 months. The 84-month version costs thousands more in interest and keeps you upside-down on the loan twice as long.
- Accepting dealer financing without comparing. Dealers receive a kickback on the APR markup. Even with the same lender behind the scenes, the dealer rate is often 1 to 2 points above what your credit union offers directly.
- Stretching the term to make a too-expensive car fit. If a 60-month loan does not fit your budget, the answer is a less expensive vehicle, not a 72-month loan on the same one.
- Skipping the trade-in negotiation. Trade-in offers vary by 500 to 2,000 dollars between dealers. Get a quote from CarMax or an online instant-cash-offer service first, then use it as the floor at the dealer.
- Adding gap insurance and extended warranties without checking prices. Both are real products but the F&I office marks them up 200 to 400 percent. A 1,500 dollar gap policy at the dealer is often 250 dollars from your auto insurer.
FAQ
How is the monthly car loan payment calculated?
The calculator uses the standard amortization formula: M = P times r times (1 + r) to the n, divided by (1 + r) to the n minus 1. P is the financed amount (price minus down payment minus trade-in plus tax and fees), r is the monthly interest rate (APR divided by 12), and n is the term in months. The result is your fixed monthly payment for the life of the loan.
Should I take a 60-month or a 72-month loan?
60 months is the standard recommendation for a new vehicle. The 72-month option drops the monthly payment by roughly 15 to 20 percent, but you pay 50 to 80 percent more in total interest and stay underwater on the loan (owing more than the car is worth) for most of the term. Take 72 only if 60 is genuinely unaffordable and you intend to keep the vehicle through the end of the loan.
Does sales tax get rolled into the loan?
In most US states yes. Sales tax is typically calculated on the price minus any trade-in credit, then added to the financed amount. A few states tax the full price and a few exempt private-party trade-ins entirely. Check your state DMV rules before assuming the rate. The calculator assumes tax applies to (price minus trade-in) which is the most common rule.
What APR should I expect for my credit score?
As of 2026, typical new-car APRs by Experian credit tier: 750+ runs 5.5 to 6.5 percent, 700 to 749 runs 6.5 to 7.5, 670 to 699 runs 7.5 to 9.5, 620 to 669 runs 9.5 to 13, and below 620 runs 13 to 19. Used-car APRs typically run 1.5 to 2.5 points higher per tier. Pre-approval from a credit union or bank usually beats dealer financing by 1 to 2 percentage points.
When is refinancing a car loan worth it?
Refinance when your APR can drop by 1 percentage point or more AND you have at least 18 months remaining on the loan. Below those thresholds, fees and the time value of money usually erase the savings. Improved credit, broader market rate cuts, and switching from dealer financing to a credit union are the most common refi triggers. Run the math both ways before signing anything.
Does this calculator include insurance and registration?
No. This calculator focuses on the loan itself. For full ownership cost (insurance, fuel, maintenance, depreciation, registration), use the Vehicle Total Cost of Ownership Calculator. The two paired together give you both the financing math and the lifetime cost of the vehicle.