Finance

Car Payment Calculator

Estimate your monthly car payment, total interest, amount financed, and full cost of ownership including insurance, maintenance, and fuel.

Quick Answer

For a $35,000 car with $5,000 down at 6.5% APR for 60 months, your monthly payment is about $587. You will pay roughly $5,200 in interest over the life of the loan. Total cost of ownership (loan + insurance + maintenance + fuel) can exceed $60,000 over 5 years.

Loan Details

$
$
$
%
6.5%
0%25%
Estimated Monthly Payment
$634.92
/month for 60 months
Amount Financed
$32,450
Total Interest
$5,645
Sales Tax
$2,450
Total Loan Cost
$43,095

Cost Breakdown

Principal$32,450
Interest$5,645
Sales Tax$2,450
Insurance$9,000
Maintenance$6,000
Fuel$9,000

Total Cost of Ownership (5 years)

Estimated ongoing costs over the loan term. Edit values below to match your situation.

$
$
$
Monthly Ownership Cost
$1,034.92
Total Cost of Ownership
$67,095
Disclaimer: This calculator provides estimates for educational purposes only. Actual payments depend on your credit score, lender terms, fees, dealer charges, and applicable taxes. Insurance, maintenance, and fuel costs are estimates and vary by vehicle, location, and driving habits. Consult a qualified financial advisor or your lender for personalized auto financing advice.
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About This Tool

The Car Payment Calculator helps you estimate your monthly auto loan payment before you visit the dealership. By entering the vehicle price, down payment, trade-in value, interest rate, loan term, and sales tax, you get an instant breakdown of your financing costs. The total cost of ownership section adds insurance, maintenance, and fuel to show you the true monthly and lifetime cost of your vehicle.

How Car Loan Payments Are Calculated

Auto loans use a standard amortization formula. Each monthly payment covers both principal and interest. Early payments are interest-heavy; as the loan matures, more of each payment goes toward principal. The formula is: M = P[r(1+r)^n] / [(1+r)^n - 1], where M is the monthly payment, P is the principal (amount financed), r is the monthly interest rate, and n is the number of payments.

Understanding Amount Financed

The amount financed is the vehicle price plus sales tax minus your down payment and trade-in value. A larger down payment or trade-in reduces your loan amount, which lowers both your monthly payment and total interest paid. Financial experts recommend putting at least 20% down on a new car (10% on used) to avoid being "upside down" on your loan — owing more than the car is worth.

Choosing the Right Loan Term

Shorter loan terms (24-48 months) have higher monthly payments but save significantly on interest. Longer terms (60-84 months) lower your monthly payment but cost thousands more in total interest. A common guideline: keep your total car expenses (payment + insurance) under 15-20% of your monthly take-home pay. If a 48-month payment is too high, consider a less expensive vehicle rather than stretching to 72 or 84 months.

Total Cost of Ownership

The sticker price is just the beginning. Over 5 years, a $35,000 car can cost $55,000-$65,000 when you factor in insurance ($150-300/month), maintenance and repairs ($75-150/month), fuel ($100-250/month), and depreciation. This calculator helps you see the full picture so you can budget accordingly and avoid being car-poor.

Frequently Asked Questions

What is a good interest rate for a car loan in 2026?
As of 2026, good interest rates range from 4-7% for new cars and 5-9% for used cars, depending on your credit score. Borrowers with excellent credit (750+) typically qualify for the lowest rates. Credit unions often offer rates 1-2% lower than banks or dealer financing. Always get pre-approved before visiting the dealer so you can compare offers.
How much should I put down on a car?
Financial experts recommend at least 20% down on a new car and 10% on a used car. A larger down payment reduces your loan amount, lowers your monthly payment, and helps you avoid negative equity (owing more than the car is worth). If you can't afford 20% down, consider a less expensive vehicle or saving longer before purchasing.
Is a longer or shorter loan term better?
Shorter terms (36-48 months) are better financially — you pay less total interest and build equity faster. However, they have higher monthly payments. Longer terms (60-84 months) lower your monthly payment but cost thousands more in interest. For example, a $30,000 loan at 6.5% costs $3,100 in interest over 36 months vs. $8,700 over 72 months. Avoid loans longer than 60 months if possible.
Does the calculator include dealer fees?
This calculator accounts for sales tax, but dealer fees (documentation fee, registration, title transfer) vary by state and dealer. These typically add $300-1,000 to your total cost. Ask the dealer for a complete out-the-door price before finalizing your purchase. You can add these fees to the vehicle price field for a more accurate estimate.
How accurate are the insurance and maintenance estimates?
The default values ($150/mo insurance, $100/mo maintenance, $150/mo fuel) are national averages for a mid-range vehicle. Your actual costs depend on your driving record, location, vehicle make/model, and driving habits. Luxury and performance vehicles typically cost more to insure and maintain. Edit these values to match your specific situation for a more accurate total cost of ownership.

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