Car Payment Calculator
Calculate your monthly car payment, total interest, and out-the-door cost. Includes trade-in equity, sales tax, dealer fees, GAP insurance, and extended warranty. Compare new vs used car rates.
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Total Interest Paid —
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Extended More scenarios, charts & detailed breakdown ▾
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Professional Full parameters & maximum detail ▾
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Purchase Price Breakdown
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Loan Summary
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Total Cost (all-in) —
How to Use This Calculator
- Enter the vehicle price, down payment, trade-in value, APR, and loan term to get your monthly payment instantly.
- Use the New Car tab for typical new vehicle rates and terms.
- Use the Used Car tab — used car rates are 2–4% higher than new car rates.
- Use the With Trade-In tab to calculate your trade-in equity and how it reduces the amount financed.
- Use the Professional tab to see the full out-the-door price including sales tax, dealer fees, registration, GAP insurance, and extended warranty.
Formula
Monthly Payment = P × r × (1+r)^n / ((1+r)^n − 1)
where P = loan amount, r = APR/12, n = term months
Loan Amount = Vehicle Price − Down Payment − Trade-In Value
where P = loan amount, r = APR/12, n = term months
Loan Amount = Vehicle Price − Down Payment − Trade-In Value
Example
Example: $32,000 vehicle, $5,000 down, 6.5% APR, 60 months. Loan = $27,000. Monthly rate = 0.5417%. Payment = $528/month. Total interest = $4,680. Total cost = $31,680.
Frequently Asked Questions
- Your monthly car payment is calculated using the loan amount (vehicle price minus down payment and trade-in), the APR divided by 12, and the loan term in months. The formula is: Payment = P × r × (1+r)^n / ((1+r)^n − 1), where P is the loan amount, r is the monthly interest rate, and n is the number of months.
- As of 2026, a good APR for a new car loan is below 6% for borrowers with excellent credit (750+). Used car rates are typically 2–4% higher. Average new car rates run 6–8% and used car rates 8–12% for good credit. Buyers with poor credit may see rates of 15–25%.
- Financial experts recommend a down payment of at least 20% for new cars and 10% for used cars. This reduces your loan amount, lowers monthly payments, and helps avoid being "underwater" (owing more than the car is worth) due to rapid depreciation.
- GAP (Guaranteed Asset Protection) insurance covers the difference between your loan balance and the car's actual cash value if your vehicle is totaled or stolen. It is most valuable in the first 2–3 years of a loan, when cars depreciate fastest. If you put less than 20% down, GAP insurance is generally recommended.
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Sources & References (5) ▾
- CFPB — Auto Loans Guide — Consumer Financial Protection Bureau
- Federal Reserve — Consumer Credit Auto Loan Rates (G.19) — Federal Reserve
- FTC — Buying a New Car — Federal Trade Commission
- Truth in Lending Act (Regulation Z) — Consumer Financial Protection Bureau
- FDIC — Vehicle Loan Resources — Federal Deposit Insurance Corporation