Buying a car is exciting—until you start running the numbers. This calculator takes the guesswork out of car financing by showing you exactly what you'll pay each month and over the life of your loan.

Whether you're a first-time buyer trying to figure out what you can realistically afford, someone upgrading after years in the same vehicle, or just doing homework before a dealership visit, knowing your numbers ahead of time changes the conversation. You walk in informed, not hopeful.

Enter your vehicle price, interest rate, loan term, and down payment below. The results update instantly, so you can play with different scenarios and find the sweet spot between monthly affordability and total cost.

Getting your estimate takes about ten seconds:

1. Enter the vehicle price – This is the total purchase price you're considering. If you're still browsing, try a few different price points to see how they hit your budget. That $28,000 car might feel very different from the $24,000 one once you see the monthly numbers.

2. Set your interest rate – Use the rate you've been quoted, or estimate based on your credit score (we've included current market rates below). The slider makes it easy to see how even a small rate change affects your payment.

3. Choose your loan term – This is how many months you'll take to pay off the loan. Most buyers choose between 36 and 72 months. Shorter means higher payments but less interest; longer means lower payments but more interest. We'll dig into this trade-off shortly.

4. Add your down payment – Enter what you plan to pay upfront. This reduces the amount you finance—and every dollar you put down is a dollar that won't accrue interest.

The calculator updates automatically as you adjust each field, showing your monthly payment, total cost, and how much goes to interest.

The calculator gives you four numbers. Here's what each one actually tells you:

Monthly Payment – What you'll owe every month until the loan is paid off. This is the number most people focus on, but it's not the whole picture. When budgeting, remember that owning a car costs more than just the payment—insurance, gas, maintenance, and registration add up.

Loan Amount – The principal you're borrowing: vehicle price minus your down payment. This is the amount that accrues interest, so keeping it lower saves you money twice—once on the payment, once on interest.

Total Amount Paid – Everything you'll hand over by the time you own the car free and clear. This number is humbling. It's also the most honest measure of what your financing choices actually cost.

Total Interest Paid – The pure cost of borrowing money. It's the gap between what the car costs and what you'll actually pay. When comparing loan options, this is the number to watch. A lower rate or shorter term can shrink it by thousands.

Your monthly payment comes down to four things. Understanding how each one moves the needle helps you make trade-offs that fit your situation.

This is your starting point, and it has the most straightforward impact: higher price, higher payment. Every $1,000 added to the purchase price increases your monthly payment by roughly $18-25, depending on your rate and term.

One thing to keep in mind—the sticker price isn't always the final number. Dealer fees, taxes, and add-ons can push it higher. Rebates, manufacturer incentives, and good old-fashioned negotiation can bring it down. The number you plug into this calculator should be your realistic out-the-door estimate.

Your rate determines how much you pay for the privilege of borrowing money, and the impact is larger than most people expect.

Here's a concrete example: on a $25,000 loan over 60 months, the difference between a 5% rate and a 10% rate is about $60 per month. That's $3,600 extra over the life of the loan—for the exact same car.

What determines your rate? Mostly your credit score, but also whether the car is new or used, how long you're borrowing, and which lender you use. More on all of this below.

This is where the monthly payment vs. total cost trade-off gets real.

Stretching your loan over more months lowers each payment, which feels great in the moment. But you're paying interest for longer, so the total cost climbs. Shorter terms hurt more each month but save you money overall—and you own the car outright sooner.

Here's how term length plays out on a $25,000 loan at 7%:

That 72-month loan saves you $345 a month compared to 36 months. But by the end, you've paid almost $3,000 extra for the same car. Neither choice is wrong—it depends on what you can afford and what trade-off you're comfortable with.

Putting money down does three good things at once: it lowers your monthly payment, reduces total interest, and builds instant equity so you're less likely to owe more than the car is worth.

Here's the math on a $30,000 vehicle at 7% for 60 months:

Putting 20% down instead of nothing saves you $119 per month and over $1,100 in interest. If you can swing it, it's usually worth it.

Knowing what rates look like right now helps you evaluate whether the offer you're getting is competitive—or whether you should keep shopping.

Interest rates vary significantly by credit score. Here's what the market looks like as of late 2025:

Rates based on Experian auto finance data from Q2-Q3 2025. Your actual rate depends on the lender, loan amount, term, and specifics of your credit history.

If you're quoted something well above these ranges, don't just accept it. Shop around, or ask what's driving the higher rate. Sometimes it's fixable.

You'll notice used car rates are typically 1-3 percentage points above new car rates. That's because lenders see used vehicles as riskier—their value is harder to predict, and statistically, used car loans have slightly higher default rates.

That said, a used car at a higher rate can still be a smarter financial move than a new car at a lower rate. The purchase price difference often outweighs the rate difference. Run both scenarios through the calculator and compare the total cost.

This is the question behind the question. Most people shopping for a car aren't just wondering what the payment will be—they're wondering if they can actually afford it without making life uncomfortable.

A useful framework is the 20/4/10 guideline:

• 20% down payment – Builds immediate equity and keeps your loan manageable
• 4-year term maximum – Prevents you from paying for a car long after it's lost significant value
• 10% of gross income – Your payment shouldn't eat more than this

Say your household brings in $60,000 a year, or $5,000 per month. The 10% rule suggests keeping your payment under $500.

Working backward with a 48-month term at 7% interest:

• Maximum loan amount: roughly $21,000
• With 20% down, that means a vehicle price around $26,000

Is this conservative? Absolutely—by design. Plenty of people spend more and manage just fine. But staying within these limits leaves room for life's surprises and keeps your car from crowding out other financial goals. If you decide to stretch, at least you're doing it with eyes open.

Your monthly loan payment isn't your total car cost. Before committing, factor in:

• Insurance – Can vary by hundreds of dollars depending on the vehicle. Get quotes before you buy, not after.
• Fuel – That SUV might fit your lifestyle, but calculate what you'll spend on gas given your commute.
• Maintenance – Oil changes, tires, brakes, and the occasional surprise. Budget something.
• Registration and taxes – Annual fees that vary by state and vehicle value.

A car that fits your payment budget but costs $200 more per month to insure and fuel might not be the right choice after all.

The rate you're first offered isn't necessarily the rate you're stuck with. Here's how to improve your odds of getting something competitive:

Your credit score is the biggest factor in your rate. Before you apply anywhere, pull your score and review your credit report for errors. If you're on the border between credit tiers—say, 695 when 700 gets you better rates—it might be worth a few weeks of effort to nudge it up.

Walking into a dealership with pre-approval from your bank or credit union changes the dynamic. You know what rate you qualify for, so you can evaluate dealer financing against a real alternative. It also lets you negotiate as a cash buyer, which simplifies things.

Rates vary more than you might expect. Check your bank, a credit union, and at least one online lender. When you apply to multiple auto lenders within a 14-45 day window (depends on the scoring model), the inquiries typically get bundled and treated as one. So shop around without worrying about hurting your score.

Lenders often offer lower rates on shorter loans because they're less risky. If the higher monthly payment fits your budget, a 48-month loan might come with a noticeably better rate than a 72-month loan—saving you money on both the rate and the interest.

A larger down payment means you're borrowing a smaller percentage of the car's value, which lenders like. Some offer better rates when you're financing less than 80% or 90% of the purchase price.

There's no universally "correct" loan term—it depends on your cash flow, your priorities, and how you feel about debt. Here's how to think through it:

The case for:

• You'll pay significantly less interest overall
• You build equity faster and avoid being underwater
• You own the car years sooner
• You'll often qualify for a lower rate

The case against:

• Higher monthly payments
• May force you into a less expensive vehicle than you'd prefer

Works best for: People who can handle higher payments comfortably and want to minimize what they pay in total.

The case for:

• Lower monthly payments
• Lets you afford a more expensive or newer vehicle

The case against:

• Substantially more interest over the life of the loan
• Higher risk of owing more than the car's worth
• The car may need costly repairs while you're still paying for it

Works best for: People who need the payment flexibility, but should go in understanding the trade-off.

Some lenders now offer 84-month (7-year) financing. The monthly payment looks attractive on paper, but you'll be paying interest for seven years on something that loses value every year.

Most financial guidance suggests capping terms at 60 months for new cars and 48 months for used. Beyond that, you're likely paying for the car long after the new-car feeling has worn off—and potentially long after expensive repairs start showing up.

If you're curious how the math works, here's the standard amortization formula the calculator uses:

Monthly Payment = P × [r(1+r)^n] / [(1+r)^n - 1]

Where:

• P = Principal (vehicle price minus down payment)
• r = Monthly interest rate (annual rate divided by 12)
• n = Total number of monthly payments

You don't need to know this to use the calculator—it handles everything. But if you want to double-check the numbers or build your own spreadsheet, that's the math.

This calculator provides estimates for planning and comparison purposes. Your actual loan terms will depend on the lender, your complete credit profile, the specific vehicle, and other factors. Rates and examples reflect market conditions as of late 2025.

For personalized guidance on auto financing, talk to your bank, credit union, or a financial advisor who can review your full situation.