Your car payment is the amortized payment on the price minus your down payment and trade-in. A $30,000 car with $3,000 down leaves $27,000 to finance. Financing a bike instead? Use the motorcycle loan calculator for the same comparison. At 6.5% APR for 60 months that is $528.29 a month and $4,697.16 in total interest. Stretching the same loan to 84 months lowers the payment to $400.93 but raises interest to $6,678.52. Motorhomes and travel trailers often run 10 to 20 years, so price those on the RV loan calculator.
Shoppers use this car loan calculator at the dealership or online before signing, so payment targets stay tied to the real cash due at signing. For a plain principal only loan estimate, the loan calculator is a useful companion.
How the payment is calculated
Financed principal equals price minus down payment minus trade-in. Payment equals PMT on that principal, annual rate, and months.
Worked example
Price $30,000, down payment $3,000, trade-in $0, rate 6.5 percent, term 60 months. Financed amount is $27,000. Monthly payment is about $528.29.
| Input | Value |
|---|---|
| Price | $30,000 |
| Down payment | $3,000 |
| Trade-in | $0 |
| Rate | 6.5% |
| Term | 60 months |
| Monthly payment | ~$528.29 |
- Rolling sales tax in: if 8% tax on the $30,000 price ($2,400) is financed, the amount financed becomes $29,400 and the 60-month payment at 6.5% is $575.24. Enter $32,400 as the price to model it. (The 8% is an example rate, not a specific state.)
- Negative equity: a $5,000 trade-in with a $7,000 payoff adds $2,000 to the loan. Financing $29,000 at 6.5% for 60 months is $567.42. Enter trade-in as 0 and add the $2,000 shortfall to the price.
How to use the fields
- Price should match the amount you agree to finance before cash down and trade credit.
- Down payment is cash paid at signing that reduces the loan.
- Trade-in is the credit applied after any payoff on the traded vehicle.
- Rate and months come from the finance offer you are testing.
Taxes, fees, and add ons
Sales tax, title, registration, and dealer add ons can raise the amount financed. If those items will be rolled into the loan, increase the price input so the payment reflects them (see the sales tax example above). Extended warranties and GAP should be judged on value, not only on how small they make the payment look when stretched over more months. If you pay the loan off early, you can usually cancel GAP insurance and get a refund of the unused part. Interest on new-car loans may be deductible for 2025–2028; the car loan interest deduction calculator shows the yearly interest.
Term length tradeoffs
Longer terms lower the monthly payment and raise total interest. Cars also depreciate. A payment that fits the budget but lasts longer than you will keep the car can leave you upside down. Compare 48, 60, and 72 month quotes with the same down payment. The table below shows how term changes the payment on the default loan.
Car payment by loan term ($27,000 at 6.5%)
| Term | Monthly payment | Total interest |
|---|---|---|
| 36 months | $827.52 | $2,790.83 |
| 48 months | $640.30 | $3,734.58 |
| 60 months | $528.29 | $4,697.16 |
| 72 months | $453.87 | $5,678.50 |
| 84 months | $400.93 | $6,678.52 |
Going from 36 to 84 months cuts the payment by $426.59 but adds $3,887.69 in interest.
Car payment by APR ($27,000, 60 months)
| APR | Monthly payment | Total interest |
|---|---|---|
| 0% | $450.00 | $0.00 |
| 4% | $497.25 | $2,834.77 |
| 6.5% | $528.29 | $4,697.16 |
| 7.54% | $541.54 | $5,492.28 |
| 9% | $560.48 | $6,628.54 |
| 12% | $600.60 | $9,036.01 |
For reference, the Federal Reserve’s G.19 release reports an average commercial bank rate of 7.54% on 60-month new-car loans in August 2026 (72 months: 7.17%). Your rate depends on credit and lender. If you are weighing a lease instead, estimate the payment with the auto lease calculator. Source: Federal Reserve G.19.
72-month car loan payment table
Monthly payment for a 72-month (6-year) loan. 7.17% is the average commercial bank rate for 72-month new-car loans in August 2026 (Federal Reserve G.19). The other columns show stronger and weaker credit.
| Amount financed | 5% APR | 7.17% APR | 9% APR | 12% APR |
|---|---|---|---|---|
| $10,000 | $161.05 | $171.31 | $180.26 | $195.50 |
| $20,000 | $322.10 | $342.62 | $360.51 | $391.00 |
| $30,000 | $483.15 | $513.92 | $540.77 | $586.51 |
| $40,000 | $644.20 | $685.23 | $721.02 | $782.01 |
How the 7.17% row is calculated: monthly rate r = 7.17% ÷ 12 = 0.5975%. Payment = P × r ÷ (1 − (1 + r)−72). With (1.005975)72 = 1.5356, $30,000 × 0.005975 × 1.5356 ÷ 0.5356 = $513.92 a month. Over 72 months, you pay $37,002.43 in total, of which $7,002.43 is interest.
Total interest over 72 months on $30,000: $4,786.65 at 5%, $7,002.43 at 7.17%, $8,935.16 at 9% and $12,228.42 at 12%. Each extra $10,000 financed at 7.17% adds $171.31 a month.
Common mistakes
- Focusing only on monthly payment while ignoring total interest
- Forgetting a trade payoff that reduces net trade-in credit
- Leaving tax and fees out of a financed deal
- Stretching term to afford extras you do not need
Down payment and trade-in levers
Raising the down payment reduces financed principal and usually lowers the payment without stretching the term. A stronger trade-in does the same when the traded vehicle is free and clear or the payoff is already handled. If a trade has a payoff larger than its credit, the shortfall may be rolled into the new loan and raise the payment instead. To plan how much cash to put down, try the down payment calculator.
Model both the clean trade credit case and the negative equity case before you agree to a deal structure. Salespeople sometimes move numbers between price, trade, and rate; this calculator helps you lock the financed amount and recompute payment after each change. Recalculate after each change so a lower price is not erased by a weaker APR or a longer term.
Insurance and ownership costs
Monthly loan payment is only part of car ownership. The same is true on the water: the boat loan calculator shows the loan payment while slip, storage and insurance sit outside it. Add insurance, fuel, maintenance, and registration when you judge affordability.
Limitations
Results ignore early payoff penalties, variable rate products, and lender credit tiering. Exact contracts may round differently. Use the estimate to prepare, then confirm the final Truth in Lending figures.
Related: Car Loan Interest Deduction Calculator.