Car Loan Calculator
Enter the vehicle price, your down payment or trade-in, the rate, and term. See the real monthly payment and what the car costs by the final payment.
| Amount financed | — |
| Total interest | — |
| Total cost of the car | — |
Full payment schedule (year by year)
How a car payment is calculated
Payment = Loan × r ÷ (1 − (1 + r)−n)
where the loan is price plus sales tax minus your down payment and trade-in, r is the monthly rate, and n the number of payments. A $32,000 car with 6% tax and $5,000 down at 7% for 60 months runs about $566/month — and about $5,300 of total interest.
The term-length trap
| Term | Monthly (same example) | Total interest |
|---|---|---|
| 48 months | ≈ $684 | ≈ $4,270 |
| 60 months | ≈ $566 | ≈ $5,340 |
| 72 months | ≈ $487 | ≈ $6,450 |
| 84 months | ≈ $431 | ≈ $7,600 |
Dealers sell the monthly payment; the 84-month loan "saves" $135/month but costs $2,260 more — and cars depreciate faster than long loans amortize, leaving many borrowers underwater (owing more than the car is worth) for years. Rule of thumb: if you need more than 60 months to afford the payment, the car is too expensive — check the car affordability calculator.
Frequently asked questions
What is the monthly payment on a $32,000 car?
With $5,000 down, 6% sales tax, 7% APR over 60 months: about $566/month, with roughly $5,300 total interest. Enter your numbers above for exact figures.
Should sales tax be financed?
Most buyers roll it into the loan (as this calculator does), which adds interest on the tax. Paying tax and fees in cash keeps the loan smaller and shortens the underwater period.
What is a good car loan rate in 2026?
Strong credit gets roughly 5–7% on new cars and 6–9% used; weaker credit can see 12%+. Credit unions frequently beat dealer financing — get pre-approved before visiting the lot.
Is a 72 or 84 month car loan bad?
Longer terms mean more total interest and years of owing more than the car is worth. They make sense only at very low promotional rates — otherwise they are a sign the purchase price is too high.
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Last updated: 2026-07-07