$45,000 car loan calculator

Financing a car in the $30,000 to $45,000 range

Most new mid-size SUVs, trucks and many crossovers sit here, and the average new-car loan is in this territory. At this size the term matters as much as the rate, because stretching to 72 or 84 months adds thousands in interest.

Take any manufacturer incentives into account: a cash rebate may beat a low promotional rate, so compare the total cost of each.

The rule of thumb for $45,000

At 7% over 5 years, every $1,000 borrowed costs about $19.80 a month, so $45,000 costs about $891.05. You pay $8,463 in interest, which is 19% of the amount borrowed. That is a moderate share for this term.

$45,000 financed: payment by loan length

At 7% APR, financing $45,000 costs $891.05 a month over 60 months and $679.17 over 84 months. The longer loan lowers the payment by $211.88 but adds $3,587 in interest. Going the other way, 36 months raises the payment to $1,389.47 and cuts total interest to $5,021.

How the interest rate changes a 5-year loan

On the same $45,000 over 5 years, each full percentage point of APR moves the payment by about $21.39 and total interest by about $1,283.

What a bigger down payment does

Putting $9,000 (20%) down on this $45,000 car lowers the loan from $45,000 to $36,000.

Paying extra

Adding $100 a month to this loan would pay it off 7 months sooner and save $1,033 in interest, as long as your lender applies extra money to principal and charges no prepayment penalty. Ask before you start.

Can you afford a $45,000 car?

A common rule of thumb, the 20/4/10 guideline, suggests 20% down, a term of at most 4 years and total car costs under 10% of gross income. On payment alone, $891.05 a month points to a gross income of roughly $106,900 a year to stay at 10%, before insurance, fuel and maintenance. Here the down payment is 0% rather than 20% and the term of 60 months is longer than 48, which means a smaller monthly payment in exchange for more interest and a longer period of debt.

Will you owe more than the car is worth?

New cars commonly lose around 20% of their value in the first year and roughly 15% a year after that, though this varies by model. Using that rough rule on a $45,000 car, you would likely owe more than the car is worth until about year 2. Gap insurance can cover the difference if the car is totaled while you are underwater.

Nearby car prices at the same rate and term

If your budget is flexible, here is how a few dollars more or less on the price changes the payment at 7% over 5 years.