Car Loan Calculator
Dealers negotiate in monthly payments because it hides the total cost. This car loan calculator reverses the trick: enter the vehicle price, your down payment (including trade-in value), the rate and the term, and see the payment alongside the total interest and the real cost of the car.
Test the term carefully — 84-month loans feel affordable monthly but add thousands in interest on a depreciating asset.
Enter valid values to see the results.
Formula
Standard amortization, same as any fixed-rate loan. The loan amount is the price minus down payment and trade-in; taxes and dealer fees financed into the loan should be added to the price field.
What you need
- Vehicle price: the negotiated out-the-door price, including any fees you will finance.
- Down payment: cash plus the trade-in value of your current car.
- Rate and term: from the loan pre-approval, not the dealer’s first offer — banks and credit unions usually beat dealer financing.
Worked example
Practical tips
- Get pre-approved by a bank or credit union before visiting the dealer — it turns you into a cash buyer in negotiations.
- Keep the term at 60 months or less; cars depreciate faster than long loans amortize, creating negative equity.
- A bigger down payment protects you: new cars lose ~20% of value in year one.
- Compare total interest, not monthly payments, when choosing between offers.
Monthly payment per $20,000 financed
| Rate | 36 mo | 60 mo | 84 mo |
|---|---|---|---|
| 4% | $590.48 | $368.33 | $273.38 |
| 6% | $608.44 | $386.66 | $292.17 |
| 8% | $626.74 | $405.53 | $311.66 |
| 12% | $664.29 | $444.89 | $353.06 |
Common mistakes
- 1 Negotiating the monthly payment instead of the vehicle price — dealers can hit any payment by extending the term.
- 2 Financing taxes, warranties and fees into the loan, paying interest on them for years.
- 3 Ignoring insurance costs, which rise with financed cars requiring full coverage.
Frequently asked questions
What is a good car loan rate?
It depends on your credit and the market, but as a rule: if the dealer’s rate beats your bank pre-approval, take it; otherwise use yours. Even 1% matters — on $26,000 over 60 months it is about $700.
Is a longer car loan worth it for the lower payment?
Rarely. You pay far more interest and spend years owing more than the car is worth. If you need 84 months to afford the payment, the car is too expensive.
How much should I put down on a car?
At least 10–20%. That offsets the first-year depreciation and keeps you out of negative equity.
Does this calculator include taxes and fees?
Add them to the vehicle price if you will finance them. If you pay them upfront, leave them out.