Monthly Payment & Total Cost
Last reviewed: May 2026
Calculate the monthly payment for any vehicle loan — new or used. The total cost of a car is far more than the sticker price: factor in sales tax (6–10%), registration, documentation fees, and insurance. This calculator shows you the true monthly cost and total interest paid across different term lengths and rates.1
| Loan Amount | Monthly Payment | Total Interest | Total Cost |
|---|---|---|---|
| $15,000 | $290 | $2,400 | $17,400 |
| $25,000 | $483 | $3,999 | $28,999 |
| $35,000 | $677 | $5,599 | $40,599 |
| $45,000 | $870 | $7,199 | $52,199 |
| Term | Monthly | Total Interest | Total Paid |
|---|---|---|---|
| 36 months | $913 | $2,862 | $32,862 |
| 48 months | $704 | $3,793 | $33,793 |
| 60 months | $580 | $4,799 | $34,799 |
| 72 months | $497 | $5,788 | $35,788 |
Auto loan payments use the same amortization formula as mortgages: M = P[r(1+r)^n] / [(1+r)^n - 1]. For a $35,000 vehicle with $5,000 down payment, financed at 6.9% for 60 months: principal = $30,000, monthly rate = 0.00575, payments = 60. Monthly payment = $592. Total paid: $35,520, of which $5,520 is interest. The down payment directly reduces both the monthly payment and total interest: the same vehicle with $0 down ($35,000 financed) costs $693/month with $6,580 interest — $1,060 more in total cost. Dealers sometimes obscure the interest rate by focusing on monthly payment ("only $450/month!"), which may require extending the loan to 72 or 84 months, dramatically increasing total interest while keeping the monthly number attractive.
New car loans typically carry lower interest rates (5-7% with good credit) than used car loans (7-10%) because the newer vehicle serves as better collateral. However, the mathematical advantage of buying used often overwhelms the rate difference. A new car at $35,000 with 5.9% APR for 60 months costs $675/month ($40,500 total). A 3-year-old equivalent at $22,000 with 7.9% for 48 months costs $535/month ($25,680 total) — $14,820 less in total cost despite the higher rate, plus lower insurance premiums and registration fees. New cars depreciate approximately 20-25% in the first year and 15% in the second, meaning that $35,000 vehicle is worth roughly $23,000 after two years. Buying a 2-3 year old vehicle lets someone else absorb the steepest depreciation while you get a nearly new car at a substantial discount.
Auto loan terms have stretched from the traditional 48 months to 60, 72, and even 84 months. Longer terms reduce monthly payments but increase total cost and create negative equity risk. A $30,000 loan at 6.5%: 48 months = $712/month, $4,176 interest. 60 months = $587/month, $5,220 interest. 72 months = $505/month, $6,360 interest. 84 months = $446/month, $7,464 interest. The 84-month loan saves $266/month versus the 48-month but costs $3,288 more in total interest. Worse, the vehicle depreciates faster than the loan balance decreases during the first 2-3 years of a long-term loan, creating "negative equity" or being "upside down" — owing more than the car is worth. If you need to sell or the car is totaled, you'd owe the difference. Gap insurance covers this risk but adds to the overall cost.
Trading in a vehicle with an existing loan requires paying off the remaining balance. If your car is worth $12,000 as a trade-in but you owe $15,000, the $3,000 negative equity gets rolled into your new loan. Trading a $15,000 balance into a $30,000 vehicle means financing $33,000 (plus taxes) — starting the new loan already $3,000 underwater. This negative equity cycle traps buyers who repeatedly trade in vehicles before their loans are paid down: each trade compounds the problem. Breaking the cycle requires either keeping a vehicle until the loan is paid off (and ideally several years beyond), making a large enough down payment to offset the negative equity, or paying down the difference in cash before trading. Dealers happily roll negative equity into new loans because it increases the financed amount and their profit on financing.
Several strategies significantly reduce the total cost of vehicle financing. Get pre-approved by your bank or credit union before visiting dealers — dealer financing is often 1-2% higher, adding thousands over the loan term. A credit score above 720 qualifies for the best rates; if your score is below 680, spending 3-6 months improving it before buying can save $2,000-5,000 in interest. Make the largest down payment feasible — 20% is ideal, eliminating the negative equity window entirely. Choose the shortest term you can comfortably afford: the 48-month payment may stretch your budget, but the interest savings are substantial. Round up payments: paying $600 on a $587 payment adds $13/month to principal, saving $380 in interest and paying off 2 months early. Finally, avoid dealer add-ons financed into the loan (extended warranties, paint protection, fabric coating) — these increase the loan balance while adding minimal value.
Auto loan payments use the same amortization formula as mortgages: M = P[r(1+r)^n] / [(1+r)^n - 1]. For a $35,000 vehicle with $5,000 down payment, financed at 6.9% for 60 months: principal = $30,000, monthly rate = 0.00575, payments = 60. Monthly payment = $592. Total paid: $35,520, of which $5,520 is interest. The down payment directly reduces both the monthly payment and total interest: the same vehicle with $0 down ($35,000 financed) costs $693/month with $6,580 interest — $1,060 more in total cost. Dealers sometimes obscure the interest rate by focusing on monthly payment ("only $450/month!"), which may require extending the loan to 72 or 84 months, dramatically increasing total interest while keeping the monthly number attractive.
New car loans typically carry lower interest rates (5-7% with good credit) than used car loans (7-10%) because the newer vehicle serves as better collateral. However, the mathematical advantage of buying used often overwhelms the rate difference. A new car at $35,000 with 5.9% APR for 60 months costs $675/month ($40,500 total). A 3-year-old equivalent at $22,000 with 7.9% for 48 months costs $535/month ($25,680 total) — $14,820 less in total cost despite the higher rate, plus lower insurance premiums and registration fees. New cars depreciate approximately 20-25% in the first year and 15% in the second, meaning that $35,000 vehicle is worth roughly $23,000 after two years. Buying a 2-3 year old vehicle lets someone else absorb the steepest depreciation while you get a nearly new car at a substantial discount.
Auto loan terms have stretched from the traditional 48 months to 60, 72, and even 84 months. Longer terms reduce monthly payments but increase total cost and create negative equity risk. A $30,000 loan at 6.5%: 48 months = $712/month, $4,176 interest. 60 months = $587/month, $5,220 interest. 72 months = $505/month, $6,360 interest. 84 months = $446/month, $7,464 interest. The 84-month loan saves $266/month versus the 48-month but costs $3,288 more in total interest. Worse, the vehicle depreciates faster than the loan balance decreases during the first 2-3 years of a long-term loan, creating "negative equity" or being "upside down" — owing more than the car is worth. If you need to sell or the car is totaled, you'd owe the difference. Gap insurance covers this risk but adds to the overall cost.
Trading in a vehicle with an existing loan requires paying off the remaining balance. If your car is worth $12,000 as a trade-in but you owe $15,000, the $3,000 negative equity gets rolled into your new loan. Trading a $15,000 balance into a $30,000 vehicle means financing $33,000 (plus taxes) — starting the new loan already $3,000 underwater. This negative equity cycle traps buyers who repeatedly trade in vehicles before their loans are paid down: each trade compounds the problem. Breaking the cycle requires either keeping a vehicle until the loan is paid off (and ideally several years beyond), making a large enough down payment to offset the negative equity, or paying down the difference in cash before trading. Dealers happily roll negative equity into new loans because it increases the financed amount and their profit on financing.
Several strategies significantly reduce the total cost of vehicle financing. Get pre-approved by your bank or credit union before visiting dealers — dealer financing is often 1-2% higher, adding thousands over the loan term. A credit score above 720 qualifies for the best rates; if your score is below 680, spending 3-6 months improving it before buying can save $2,000-5,000 in interest. Make the largest down payment feasible — 20% is ideal, eliminating the negative equity window entirely. Choose the shortest term you can comfortably afford: the 48-month payment may stretch your budget, but the interest savings are substantial. Round up payments: paying $600 on a $587 payment adds $13/month to principal, saving $380 in interest and paying off 2 months early. Finally, avoid dealer add-ons financed into the loan (extended warranties, paint protection, fabric coating) — these increase the loan balance while adding minimal value.
Auto loan payments use the same amortization formula as mortgages: M = P[r(1+r)^n] / [(1+r)^n - 1]. For a $35,000 vehicle with $5,000 down payment, financed at 6.9% for 60 months: principal = $30,000, monthly rate = 0.00575, payments = 60. Monthly payment = $592. Total paid: $35,520, of which $5,520 is interest. The down payment directly reduces both the monthly payment and total interest: the same vehicle with $0 down ($35,000 financed) costs $693/month with $6,580 interest — $1,060 more in total cost. Dealers sometimes obscure the interest rate by focusing on monthly payment ("only $450/month!"), which may require extending the loan to 72 or 84 months, dramatically increasing total interest while keeping the monthly number attractive.
New car loans typically carry lower interest rates (5-7% with good credit) than used car loans (7-10%) because the newer vehicle serves as better collateral. However, the mathematical advantage of buying used often overwhelms the rate difference. A new car at $35,000 with 5.9% APR for 60 months costs $675/month ($40,500 total). A 3-year-old equivalent at $22,000 with 7.9% for 48 months costs $535/month ($25,680 total) — $14,820 less in total cost despite the higher rate, plus lower insurance premiums and registration fees. New cars depreciate approximately 20-25% in the first year and 15% in the second, meaning that $35,000 vehicle is worth roughly $23,000 after two years. Buying a 2-3 year old vehicle lets someone else absorb the steepest depreciation while you get a nearly new car at a substantial discount.
Auto loan terms have stretched from the traditional 48 months to 60, 72, and even 84 months. Longer terms reduce monthly payments but increase total cost and create negative equity risk. A $30,000 loan at 6.5%: 48 months = $712/month, $4,176 interest. 60 months = $587/month, $5,220 interest. 72 months = $505/month, $6,360 interest. 84 months = $446/month, $7,464 interest. The 84-month loan saves $266/month versus the 48-month but costs $3,288 more in total interest. Worse, the vehicle depreciates faster than the loan balance decreases during the first 2-3 years of a long-term loan, creating "negative equity" or being "upside down" — owing more than the car is worth. If you need to sell or the car is totaled, you'd owe the difference. Gap insurance covers this risk but adds to the overall cost.
Trading in a vehicle with an existing loan requires paying off the remaining balance. If your car is worth $12,000 as a trade-in but you owe $15,000, the $3,000 negative equity gets rolled into your new loan. Trading a $15,000 balance into a $30,000 vehicle means financing $33,000 (plus taxes) — starting the new loan already $3,000 underwater. This negative equity cycle traps buyers who repeatedly trade in vehicles before their loans are paid down: each trade compounds the problem. Breaking the cycle requires either keeping a vehicle until the loan is paid off (and ideally several years beyond), making a large enough down payment to offset the negative equity, or paying down the difference in cash before trading. Dealers happily roll negative equity into new loans because it increases the financed amount and their profit on financing.
Several strategies significantly reduce the total cost of vehicle financing. Get pre-approved by your bank or credit union before visiting dealers — dealer financing is often 1-2% higher, adding thousands over the loan term. A credit score above 720 qualifies for the best rates; if your score is below 680, spending 3-6 months improving it before buying can save $2,000-5,000 in interest. Make the largest down payment feasible — 20% is ideal, eliminating the negative equity window entirely. Choose the shortest term you can comfortably afford: the 48-month payment may stretch your budget, but the interest savings are substantial. Round up payments: paying $600 on a $587 payment adds $13/month to principal, saving $380 in interest and paying off 2 months early. Finally, avoid dealer add-ons financed into the loan (extended warranties, paint protection, fabric coating) — these increase the loan balance while adding minimal value.
Auto loan payments use the same amortization formula as mortgages: M = P[r(1+r)^n] / [(1+r)^n - 1]. For a $35,000 vehicle with $5,000 down payment, financed at 6.9% for 60 months: principal = $30,000, monthly rate = 0.00575, payments = 60. Monthly payment = $592. Total paid: $35,520, of which $5,520 is interest. The down payment directly reduces both the monthly payment and total interest: the same vehicle with $0 down ($35,000 financed) costs $693/month with $6,580 interest — $1,060 more in total cost. Dealers sometimes obscure the interest rate by focusing on monthly payment ("only $450/month!"), which may require extending the loan to 72 or 84 months, dramatically increasing total interest while keeping the monthly number attractive.
New car loans typically carry lower interest rates (5-7% with good credit) than used car loans (7-10%) because the newer vehicle serves as better collateral. However, the mathematical advantage of buying used often overwhelms the rate difference. A new car at $35,000 with 5.9% APR for 60 months costs $675/month ($40,500 total). A 3-year-old equivalent at $22,000 with 7.9% for 48 months costs $535/month ($25,680 total) — $14,820 less in total cost despite the higher rate, plus lower insurance premiums and registration fees. New cars depreciate approximately 20-25% in the first year and 15% in the second, meaning that $35,000 vehicle is worth roughly $23,000 after two years. Buying a 2-3 year old vehicle lets someone else absorb the steepest depreciation while you get a nearly new car at a substantial discount.
Auto loan terms have stretched from the traditional 48 months to 60, 72, and even 84 months. Longer terms reduce monthly payments but increase total cost and create negative equity risk. A $30,000 loan at 6.5%: 48 months = $712/month, $4,176 interest. 60 months = $587/month, $5,220 interest. 72 months = $505/month, $6,360 interest. 84 months = $446/month, $7,464 interest. The 84-month loan saves $266/month versus the 48-month but costs $3,288 more in total interest. Worse, the vehicle depreciates faster than the loan balance decreases during the first 2-3 years of a long-term loan, creating "negative equity" or being "upside down" — owing more than the car is worth. If you need to sell or the car is totaled, you'd owe the difference. Gap insurance covers this risk but adds to the overall cost.
Trading in a vehicle with an existing loan requires paying off the remaining balance. If your car is worth $12,000 as a trade-in but you owe $15,000, the $3,000 negative equity gets rolled into your new loan. Trading a $15,000 balance into a $30,000 vehicle means financing $33,000 (plus taxes) — starting the new loan already $3,000 underwater. This negative equity cycle traps buyers who repeatedly trade in vehicles before their loans are paid down: each trade compounds the problem. Breaking the cycle requires either keeping a vehicle until the loan is paid off (and ideally several years beyond), making a large enough down payment to offset the negative equity, or paying down the difference in cash before trading. Dealers happily roll negative equity into new loans because it increases the financed amount and their profit on financing.
Several strategies significantly reduce the total cost of vehicle financing. Get pre-approved by your bank or credit union before visiting dealers — dealer financing is often 1-2% higher, adding thousands over the loan term. A credit score above 720 qualifies for the best rates; if your score is below 680, spending 3-6 months improving it before buying can save $2,000-5,000 in interest. Make the largest down payment feasible — 20% is ideal, eliminating the negative equity window entirely. Choose the shortest term you can comfortably afford: the 48-month payment may stretch your budget, but the interest savings are substantial. Round up payments: paying $600 on a $587 payment adds $13/month to principal, saving $380 in interest and paying off 2 months early. Finally, avoid dealer add-ons financed into the loan (extended warranties, paint protection, fabric coating) — these increase the loan balance while adding minimal value.
Auto loan payments use the same amortization formula as mortgages: M = P[r(1+r)^n] / [(1+r)^n - 1]. For a $35,000 vehicle with $5,000 down payment, financed at 6.9% for 60 months: principal = $30,000, monthly rate = 0.00575, payments = 60. Monthly payment = $592. Total paid: $35,520, of which $5,520 is interest. The down payment directly reduces both the monthly payment and total interest: the same vehicle with $0 down ($35,000 financed) costs $693/month with $6,580 interest — $1,060 more in total cost. Dealers sometimes obscure the interest rate by focusing on monthly payment ("only $450/month!"), which may require extending the loan to 72 or 84 months, dramatically increasing total interest while keeping the monthly number attractive.
New car loans typically carry lower interest rates (5-7% with good credit) than used car loans (7-10%) because the newer vehicle serves as better collateral. However, the mathematical advantage of buying used often overwhelms the rate difference. A new car at $35,000 with 5.9% APR for 60 months costs $675/month ($40,500 total). A 3-year-old equivalent at $22,000 with 7.9% for 48 months costs $535/month ($25,680 total) — $14,820 less in total cost despite the higher rate, plus lower insurance premiums and registration fees. New cars depreciate approximately 20-25% in the first year and 15% in the second, meaning that $35,000 vehicle is worth roughly $23,000 after two years. Buying a 2-3 year old vehicle lets someone else absorb the steepest depreciation while you get a nearly new car at a substantial discount.
Auto loan terms have stretched from the traditional 48 months to 60, 72, and even 84 months. Longer terms reduce monthly payments but increase total cost and create negative equity risk. A $30,000 loan at 6.5%: 48 months = $712/month, $4,176 interest. 60 months = $587/month, $5,220 interest. 72 months = $505/month, $6,360 interest. 84 months = $446/month, $7,464 interest. The 84-month loan saves $266/month versus the 48-month but costs $3,288 more in total interest. Worse, the vehicle depreciates faster than the loan balance decreases during the first 2-3 years of a long-term loan, creating "negative equity" or being "upside down" — owing more than the car is worth. If you need to sell or the car is totaled, you'd owe the difference. Gap insurance covers this risk but adds to the overall cost.
Trading in a vehicle with an existing loan requires paying off the remaining balance. If your car is worth $12,000 as a trade-in but you owe $15,000, the $3,000 negative equity gets rolled into your new loan. Trading a $15,000 balance into a $30,000 vehicle means financing $33,000 (plus taxes) — starting the new loan already $3,000 underwater. This negative equity cycle traps buyers who repeatedly trade in vehicles before their loans are paid down: each trade compounds the problem. Breaking the cycle requires either keeping a vehicle until the loan is paid off (and ideally several years beyond), making a large enough down payment to offset the negative equity, or paying down the difference in cash before trading. Dealers happily roll negative equity into new loans because it increases the financed amount and their profit on financing.
Several strategies significantly reduce the total cost of vehicle financing. Get pre-approved by your bank or credit union before visiting dealers — dealer financing is often 1-2% higher, adding thousands over the loan term. A credit score above 720 qualifies for the best rates; if your score is below 680, spending 3-6 months improving it before buying can save $2,000-5,000 in interest. Make the largest down payment feasible — 20% is ideal, eliminating the negative equity window entirely. Choose the shortest term you can comfortably afford: the 48-month payment may stretch your budget, but the interest savings are substantial. Round up payments: paying $600 on a $587 payment adds $13/month to principal, saving $380 in interest and paying off 2 months early. Finally, avoid dealer add-ons financed into the loan (extended warranties, paint protection, fabric coating) — these increase the loan balance while adding minimal value.
→ Shorter terms save money. 48–60 months is the sweet spot.
→ Get pre-approved first. Know your rate before you negotiate the price.
→ Negotiate the price, not the payment. Dealers stretch terms to hide high prices.
→ Factor in total ownership cost. Insurance, fuel, maintenance add $200–$500/mo beyond the payment.
See also: Loan · Amortization · Interest Rate · Budget