Car Payment Calculator
Calculate monthly car payments with down payment, trade-in value, and interest rates. Compare loan terms to understand the true cost of financing your vehicle.
How to Use This Calculator
Understanding your car payment before visiting the dealership puts you in control. Here's how to calculate what you'll actually pay:
- Enter the vehicle price - use the 'out-the-door' price if you know it, or the sticker price to estimate.
- Input your down payment amount - the more you put down, the lower your monthly payment and total interest.
- If you have a trade-in, enter its value. This reduces the amount you need to finance.
- Enter the interest rate (APR) you expect - this varies based on your credit score and whether it's new/used.
- Select the loan term - 36, 48, 60, or 72 months are common options.
- Click 'Calculate' to see your monthly payment and total cost of the loan.
Why This Matters
Car purchases are the second largest financial decision most people make, yet many focus only on the monthly payment without understanding total cost. Dealerships often negotiate by adjusting loan terms rather than price - extending your loan from 48 to 72 months lowers your payment but can cost thousands more in interest. Knowing your numbers beforehand helps you negotiate effectively and avoid financing traps.
- Walk into dealerships knowing exactly what payment to expect
- Compare how different down payments affect your monthly cost
- Understand the true cost difference between loan terms (48 vs 72 months)
- Factor in trade-in value to see your real out-of-pocket costs
- Avoid dealership financing tricks by knowing your numbers in advance
Worked Examples
New Car Purchase
Buying a $32,000 new car with $5,000 down, no trade-in, at 5.9% APR for 60 months.
Used Car with Trade-In
Buying a $18,000 used car with $2,000 down and a trade-in worth $4,500 at 7.9% APR for 48 months.
Comparing Loan Terms
Same $25,000 loan at 6% APR: comparing 48-month vs 72-month terms.
Common Mistakes to Avoid
- Focusing only on monthly payment - dealerships love stretching terms to lower payments while you pay more overall.
- Forgetting that trade-in value is negotiable separately from the car price - don't let them mix the two.
- Not getting pre-approved before shopping - dealership financing is often more expensive than bank/credit union loans.
- Ignoring the total cost of ownership - insurance, fuel, and maintenance vary significantly between vehicles.
- Financing for longer than you plan to keep the car - you could end up owing more than it's worth (underwater).