Car Loan Calculator

A car loan is one of the most common forms of consumer debt, yet most buyers focus almost entirely on the monthly payment rather than the total cost. A dealer can make almost any car seem "affordable" by stretching the loan term — but a 84-month loan at 7% on a $35,000 car means you'll pay over $9,000 in interest alone, and you'll be underwater (owing more than the car is worth) for the first several years.

The interest rate is the single most impactful variable in your auto loan. The difference between a 4% and 8% rate on a $30,000 loan over 60 months is approximately $2,400 in total interest. Your rate is primarily determined by your credit score — borrowers with scores above 720 typically qualify for the best rates, while those below 600 may pay 15%+ at some dealerships.

Loan term is the second most important variable. Longer terms (72–84 months) lower your monthly payment but dramatically increase total interest paid. They also create the risk of being "upside down" on your loan — owing more than the car is worth — which becomes a problem if you need to sell or the car is totaled. A 48–60 month term is generally the sweet spot for most buyers.

Don't forget sales tax, which is often rolled into the loan. On a $35,000 car in a state with 8% sales tax, that's $2,800 in tax — and if financed, you'll pay interest on that tax amount too. Paying sales tax upfront (if possible) saves money over the loan term.