At a glance
- Payment
- Amount financed spread over the term at your APR
- Includes
- Sales tax, fees, trade-in, down payment
- Terms
- 24 to 84 months
- Cost
- Free, no signup
On this page
How a car payment is worked out
Add up the price
The car's price, plus sales tax and fees such as the doc fee, title and registration. In most states your trade-in comes off the price before tax.
Take off what you put in
Subtract your down payment, rebates and trade-in equity (what the trade is worth minus what you still owe on it). The rest is the amount financed.
Spread it over the term
The payment pays the amount financed back over the months at your APR, using the standard loan formula. Longer terms mean a lower payment and more interest.
A worked example
A $28,000 car with 6% sales tax, $500 in fees, $3,000 down and a $5,000 trade with nothing owed, at 6.9% for 60 months:
- Taxed price: $28,000 - $5,000 trade = $23,000, so tax is $1,380
- Amount financed: $28,000 + $1,380 + $500 - $3,000 - $5,000 = $21,880
- Payment: $432.22 a month for 60 months
- Interest over the loan: $4,053
Longer terms cost more
A 72 or 84-month loan lowers the payment but you pay interest for longer, usually at a higher rate, and you can owe more than the car is worth for years. If the payment only works at 84 months, look at a cheaper car or a bigger down payment. The CFPB suggests shopping the total cost, not just the payment.
What APR to start with
The credit chips fill in a starting APR. These are typical rates by credit score, not a quote. A bank, credit union or the dealer gives you the real one, and you can type it over ours.
| Credit | Scores | New car APR | Used car APR |
|---|---|---|---|
| Excellent | 720+ | 5.2% | 7% |
| Good | 660 to 719 | 6.9% | 9.7% |
| Fair | 600 to 659 | 9.9% | 14% |
| Rebuilding | Under 600 | 13.5% | 19% |
Starting rates the calculator fills in, rounded from the averages by credit band in Experian's auto finance reports. Your lender's quote is what counts: type it over these.
Leasing instead
Tap Lease in the calculator to price the same car as a lease. A lease payment is usually lower because you pay for the car's loss in value, not the whole car. The car lease calculator explains the lease math, and lease vs buy compares the two over the same years.