Car Payment Calculator - Full Cost Breakdown
Your monthly car payment is just one part of car ownership. This calculator shows the loan payment plus the full picture - down payment, sales tax, fees, trade-in, and total interest paid over the loan term.
How Car Payments Are Calculated
- M = monthly payment
- P = amount financed (price - down - trade-in + tax + fees)
- r = monthly rate (APR รท 12)
- n = number of payments
Worked Example: $35,000 Car
- Vehicle price: $35,000
- Down payment: $5,000
- Trade-in: $3,000
- Sales tax (7%): $2,100
- Fees: $500
- Amount financed: $29,600
- Rate: 7% APR, 60 months
- Monthly payment: $586
- Total interest: $5,560
- Total cost of vehicle: $43,160
Payment by Loan Term ($30,000 Financed at 7%)
| Term | Monthly Payment | Total Interest |
|---|---|---|
| 24 months | $1,344 | $2,256 |
| 36 months | $926 | $3,336 |
| 48 months | $718 | $4,464 |
| 60 months | $594 | $5,640 |
| 72 months | $512 | $6,864 |
| 84 months | $453 | $8,052 |
Hidden Costs of Car Ownership
- Insurance: $100-$250/month
- Gas: $100-$250/month
- Maintenance: $50-$100/month average
- Registration + property tax: $30-$100/month
- Depreciation: $200-$400/month on new cars
Frequently Asked Questions
What is a good car payment?
Under 15% of monthly take-home pay. On $4,000/month take-home, that means under $600.
How much should I put down on a car?
At least 20% for new cars and 10% for used cars to avoid being underwater.
Is a 72 or 84 month car loan a good idea?
Only if the rate is very low and you plan to keep the car long-term. Otherwise, you pay more interest and stay underwater longer.
Should I finance through the dealer?
Get pre-approved at a credit union first. Compare the dealer offer - it may be higher.
What is GAP insurance?
Covers the difference between your loan balance and the car's value if it is totaled. Important if you put less than 20% down.
Can I negotiate the interest rate?
Yes - especially at credit unions and banks. Dealer financing has 1-3% markup room.