Free buyer tool
Estimate your real monthly car payment — including sales tax, dealer fees, trade-in and negative equity — then see exactly how much interest the loan costs.
Same $26,180 loan at 8.5% APR — see how stretching the term raises total interest.
| Term | Monthly payment | Total interest |
|---|---|---|
| 36 months | $826.44 | $3,572 |
| 48 months | $645.29 | $4,794 |
| 60 months | $537.12 | $6,047 |
| 72 months | $465.44 | $7,332 |
| 84 months | $414.60 | $8,646 |
M = P × r(1+r)n ÷ ((1+r)n − 1)
Example: $30,000 at 6% APR for 60 months ≈ $579.98/month and $4,799 in total interest.
| Credit tier | Score | Est. APR |
|---|---|---|
| Excellent | 720+ | ~6.5% |
| Good | 660–719 | ~8.5% |
| Fair | 600–659 | ~12.5% |
| Poor | Under 600 | ~17.5% |
Estimates for used-car loans; your actual rate depends on lender, vehicle age and term.
A car payment uses the amortization formula M = P × r(1+r)^n ÷ ((1+r)^n − 1), where P is the amount financed, r is the APR divided by 12, and n is the number of months. For example, $30,000 at 6% APR for 60 months is about $580 per month.
Put at least 20% down, finance for no more than 4 years (48 months), and keep total car costs — payment, insurance and fuel — under 10% of your gross monthly income.
Longer loans lower the monthly payment but usually carry higher APRs and much more total interest, and you can owe more than the car is worth (negative equity) for years. Choose the shortest term you can comfortably afford.
Usually yes. Most buyers roll sales tax and dealer fees into the loan. In most US states the trade-in value is subtracted before tax is calculated, which lowers the tax you owe.
Negative equity means you owe more on your current car than its trade-in value. The difference is added to your new loan, raising both the amount financed and the interest you pay.
