Car Loan Calculator: Monthly Payment and Total Interest
This car loan calculator estimates your monthly payment and total interest, including sales tax, down payment and trade-in. It also compares 36 to 84-month terms so you can see the real cost of a longer loan.
Quick answer
A $30,000 car with 6% sales tax, $5,000 down and a 7% APR for 60 months means financing $26,800 at about $530.67 a month. On a $25,000 loan for 60 months, the payment ranges from about $472 at 5% APR to $635 at 18% APR.
How to use the car loan calculator
- Car price, down payment and trade-in: together they set how much you borrow.
- Sales tax: your state and local rate; it is added to the price.
- APR and term: from your loan offer. The chart compares total interest for 36 to 84 months.
From sticker price to monthly payment, step by step
Here is exactly what the car loan calculator does with a typical deal:
| Step | Amount |
|---|---|
| Car price | $30,000 |
| + Sales tax (6%) | $1,800 |
| + Dealer and registration fees | $500 |
| − Trade-in value | $4,000 |
| − Cash down payment | $3,000 |
| = Amount financed | $25,300 |
| Payment at 6.5% for 60 months | $495.02 |
| Total interest | $4,401 |
Fees and taxes vary by state, so ask the dealer for an “out-the-door” price and enter that. It is the most reliable starting point for the car loan calculator.
How much a down payment changes the loan
| Down payment on a $35,000 car | Amount financed | Monthly payment | Total interest |
|---|---|---|---|
| 0% | $35,000 | $693.04 | $6,583 |
| 10% ($3,500) | $31,500 | $623.74 | $5,924 |
| 20% ($7,000) | $28,000 | $554.43 | $5,266 |
A bigger down payment also protects you from owing more than the car is worth in the first years, when it loses value fastest.
How APR changes your payment
| APR | Monthly payment | Total interest |
|---|---|---|
| 5% | $471.78 | $3,307 |
| 7% | $495.03 | $4,702 |
| 10% | $531.18 | $6,871 |
| 14% | $581.71 | $9,902 |
| 18% | $634.84 | $13,090 |
Short vs long loans
Longer loans (72 or 84 months) lower the payment but raise the total interest, and cars lose value quickly, so you can end up owing more than the car is worth. At 7%, $25,000 for 72 months costs about $426 a month and $5,688 of interest, compared with $495 a month and $4,702 over 60 months.
New vs used: what the car loan calculator shows
Using the average prime-credit APRs from Experian for Q2 2026 (6.15% new, 8.81% used), here is a new $35,000 car compared with a used $22,000 car, both over 60 months:
| New car | Used car | |
|---|---|---|
| Price financed | $35,000 | $22,000 |
| APR | 6.15% | 8.81% |
| Monthly payment | $679.09 | $454.66 |
| Total interest | $5,746 | $5,279 |
| Total paid | $40,746 | $27,279 |
Pros of new: lower APR, warranty, fewer repairs early on. Pros of used: a much lower price and slower depreciation. The car loan calculator makes the trade-off concrete.
How much car can you afford?
A popular rule of thumb is 20/4/10: put at least 20% down, finance for no more than 4 years, and keep total car costs (payment, insurance and fuel) under about 10% of your gross income. On a $60,000 salary, that is about $500 a month for everything car-related.
It is a guideline, not a law, but it is a useful check. For example, a $28,000 loan at 7% for 48 months is about $670.49 a month, already above that budget before insurance.
Rolling over an old loan (negative equity)
If you owe $5,000 on a car worth $3,000, the $2,000 difference is often added to the new loan. At 7% for 60 months that adds about $39.60 a month and $376 of interest, and you start the new loan owing more than the new car is worth. If you can, pay down the old loan first or keep the car a little longer.
Tips to get a better car loan
- Check your credit score before you shop; better credit usually means a lower APR.
- Get pre-approved by a bank or credit union to compare with dealer financing.
- Negotiate the price of the car separately from the financing.
- Put more money down to borrow less.
- Avoid adding extras you do not need to the loan.
What this car loan calculator means for you
- Focus on total cost, not just the monthly payment.
- See what is a good APR for a car loan before you sign.
- Compare with saving for a car and paying cash.
Frequently asked questions
How much is a $25,000 car loan payment?
About $495 a month at 7% APR for 60 months, or about $472 at 5%.
Is sales tax included in a car loan?
It often is, if you finance it. The calculator adds it to the price.
What is the best car loan term?
The shortest term with a payment you can comfortably afford, often 36 to 60 months.
Should I finance through the dealer?
Compare it with a pre-approved offer from a bank or credit union and choose the lower APR.
Can I pay off a car loan early?
Usually yes. Many auto loans use simple interest, so early payments reduce the interest you pay.
Does the car loan calculator include insurance and gas?
No. It covers the loan only: price, tax, fees, trade-in, down payment, APR and term. Add insurance, fuel and maintenance separately to see the full monthly cost of the car.
How much is a car payment on a $35,000 car?
With no down payment at 7% APR for 60 months, about $693.04 a month. With 20% down, about $554.43.
Related guides and calculators
- What is a good APR for a car loan?
- Saving for a car: pay cash or finance?
- Loan payment calculator
- Amortization explained
Sources
- CFPB: Auto loans
- Federal Reserve: Consumer credit (G.19)
- Experian: Average car loan interest rates by credit score
- MonetaryReports: How we calculate
This guide is for educational purposes only and is not financial advice. The figures are estimates before taxes, fees and inflation, and real rates, returns and rules change over time.
