Work out your monthly car payment with tax, fees, down payment and trade-in included. Compare 3 to 7-year terms and see how much interest a longer loan really costs.
Enter the price you agreed on, before tax. Works for new and used cars.
Same car and rate. A longer loan lowers the payment but costs more interest, and you owe more than the car is worth for longer.
| Term | Monthly | Total interest |
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How to use the car loan calculator
- Enter the agreed price of the car before tax. Negotiate this number first, not the monthly payment.
- Add your down payment and trade-in. If you still owe money on your trade-in, subtract it from the trade-in value.
- Set your sales tax and fees. Most states charge tax on the price minus your trade-in. Doc, title and registration fees often add $500 to $2,000.
- Enter your APR and term. Use a pre-approval from your bank or credit union if you have one.
The table shows how the same loan looks over 3 to 7 years, so you can see how much a longer term really costs.
What is a good car loan term?
Four years or less is ideal, and five years is common. Loans of 72 or 84 months keep payments low, but you pay much more interest and stay “upside down”, owing more than the car is worth, for years. If you need a 7-year loan to afford the payment, the car is probably too expensive. See how much car you can afford for the 20/4/10 rule by salary.
How to get a lower car payment
- Raise your credit score before applying. Rates rise quickly below about 660. Start with how to raise your credit score fast.
- Get pre-approved by a bank or credit union, then let the dealer try to beat it.
- Put more down. Every $1,000 down lowers a 60-month payment at 7% by about $20.
- Skip add-ons you do not need, like paint protection or overpriced extended warranties.
- Consider a lease if you want a new car every few years. Compare both in lease vs buy.
- Live prices and sentiment on every ticker page
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Frequently asked questions
Is the payment exact?
It is a close estimate. Your lender’s numbers may differ slightly because of the exact start date, rounding and how your state taxes the purchase.
Does this include insurance?
No. Get an insurance quote for the exact car before you buy. It can add $150 to $300 or more a month.
Is 0% financing worth it?
Often, yes, but dealers sometimes offer either 0% or a cash rebate, not both. Run both options here: the rebate with your bank’s rate versus 0% with no rebate.
This calculator is for general information, not financial advice.
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