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Enter the price and financing terms to see your monthly car payment and what the loan costs in total.

What goes into the loan

Amount financed = price − down payment − trade-in + sales tax (sales tax is charged on price minus trade-in in most US states). The monthly payment then comes from the amortized-loan formula using your APR and term. Total interest is the sum of the interest portion of every payment.

Worked example

A $35,000 car, $4,000 down, no trade-in, 7% sales tax, 7% APR over 60 months: tax is $2,450, so $33,450 is financed, and the payment is about $662/month. Total interest over the five years is roughly $6,300. Stretching the same loan to 72 months drops the payment to about $570 but adds around $1,400 in interest — and leaves you underwater longer.

How term changes the picture

TermPaymentTotal interest
36 months~$1,033~$3,730
48 months~$801~$4,990
60 months~$662~$6,270
72 months~$570~$7,590

Figures for the $33,450 financed at 7% APR in the example above.

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Frequently asked questions

Does this include sales tax?
Yes. Sales tax is calculated on the price minus any trade-in (in most US states) and added to the amount financed unless you pay it up front.
What loan term should I pick for a car?
Shorter is cheaper overall. Terms beyond 60 months lower the payment but you can end up owing more than the car is worth ('underwater') for years. 36 to 60 months is the common range.
How much should I put down?
Enough to keep the loan under the car's value as it depreciates — often 10 to 20 percent. A larger down payment lowers both the payment and total interest.
Is APR the same as the interest rate?
APR includes the interest rate plus certain lender fees, so it is the better number for comparing offers. This tool treats the rate you enter as the APR.
What credit score do I need for a good auto rate?
Rates are heavily tiered. Prime borrowers (roughly 660+) see the advertised rates; scores in the 600s pay several points more; below 580 rates can exceed 15 to 20 percent. It's often worth delaying a purchase a few months to raise your score first.
Should I take the dealer loan or get pre-approved?
Get pre-approved by a bank or credit union first, then let the dealer try to beat it. Dealers earn a markup on the financing they arrange, so their first offer is rarely their best, and a pre-approval gives you a real number to negotiate against.
Is 0% financing always the best deal?
Not necessarily. A 0% offer is often an either/or against a cash rebate. If the rebate is large, taking it and financing elsewhere at a low rate can cost less overall. Run both scenarios.
What's wrong with a 72- or 84-month car loan?
The payment looks affordable, but cars depreciate faster than the loan amortizes early on, so you spend years 'underwater' — owing more than the car is worth. If it's totalled or you need to sell, you owe the gap. Keep the term at 60 months or less if you can.

Last reviewed: September 2026. Figures and formulas are checked against their published sources; see the site's data notes.