Should I finance through the dealer or a bank?

Get pre-approved with a bank or credit union first, then let the dealer try to beat that rate. Compare APRs, not monthly payments.

Is a longer term cheaper?

The monthly payment is lower, but total interest is higher. A 72-month loan at the same APR costs noticeably more overall than a 48-month loan.

Do I need a down payment?

Some lenders allow zero down, but you start underwater due to depreciation and may face higher rates. Even 10% down meaningfully improves the deal.

Finance

Car Loan Calculator

What this does

Estimate the monthly payment and true total cost of financing a car, including the effect of your down payment.

Enter your details

Runs in your browser

Good to know

How much car can you afford?

A common guideline keeps total vehicle costs; payment, insurance, fuel; under about 15–20% of take-home pay. Long 72–84 month terms lower the payment but leave you owing more than the car is worth for years.

Depreciation meets interest

Cars lose value fastest in the first years while interest charges are highest; the opposite of a house. Bigger down payments protect you from being underwater on the loan.

How it's calculated

The math behind this calculator

M = (Price − Down) · r / (1 − (1 + r)^−n)

Your down payment is subtracted from the price first; the remainder is financed with a standard amortizing loan. The “total cost” row adds your down payment back to all loan payments so you can see what the car really costs you.

Assumptions & limitations

Fixed APR, equal monthly payments.
Taxes, title, registration and dealer fees are not included; add them to the price if you finance them.
No trade-in or rebate modeled; fold those into the down payment.

Worked example

A $32,000 car with a $4,000 down payment financed for 60 months at 7.2% APR runs $557.08 per month; $37,424.77 all-in including the down payment.

FAQ

Frequently asked questions

Should I finance through the dealer or a bank?: Get pre-approved with a bank or credit union first, then let the dealer try to beat that rate. Compare APRs, not monthly payments.
Is a longer term cheaper?: The monthly payment is lower, but total interest is higher. A 72-month loan at the same APR costs noticeably more overall than a 48-month loan.
Do I need a down payment?: Some lenders allow zero down, but you start underwater due to depreciation and may face higher rates. Even 10% down meaningfully improves the deal.

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