Vehicle financing calculator
This vehicle financing calculator works for any car, truck or SUV and covers the price, down payment, trade-in, tax and fees that decide your loan.
Amortization schedule
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | $5,405.05 | $2,278.07 | $29,584.95 |
| 2 | $5,795.78 | $1,887.34 | $23,789.17 |
| 3 | $6,214.76 | $1,468.36 | $17,574.41 |
| 4 | $6,664.02 | $1,019.10 | $10,910.39 |
| 5 | $7,145.76 | $537.36 | $3,764.63 |
| 6 | $3,764.63 | $77.25 | $0.00 |
Financing options compared
You can finance through the dealer, a bank, a credit union or an online lender. Dealer financing is convenient and sometimes carries promotional rates, but a pre-approval from another lender helps you negotiate. Whichever you choose, compare the APR, the term, fees and any prepayment penalty.
What to enter
Use the out-the-door price, which includes taxes and fees, or enter the sticker price and put the tax and fee figures in their own fields. Subtract a trade-in or cash down payment, then choose the term. The result is your monthly payment and the interest over the loan.
$34,990 financed: payment by loan length
At 7% APR, financing $34,990 (the $36,000 price plus 6.5% sales tax and $650 in fees minus $4,000 down) costs $692.84 a month over 60 months and $528.09 over 84 months. The longer loan lowers the payment by $164.75 but adds $2,789 in interest. Going the other way, 36 months raises the payment to $1,080.39 and cuts total interest to $3,904.
| Term | Monthly payment | Total interest | Total paid |
|---|---|---|---|
| 3-year | $1,080.39 | $3,904 | $38,894 |
| 4-year | $837.88 | $5,228 | $40,218 |
| 5-year | $692.84 | $6,581 | $41,571 |
| 6-year | $596.54 | $7,961 | $42,951 |
| 7-year | $528.09 | $9,370 | $44,360 |
How the interest rate changes a 66-month loan
On the same $34,990 over 66 months, each full percentage point of APR moves the payment by about $16.79 and total interest by about $1,108. Rates depend on your credit score, the loan term and whether the car is new or used, so get a pre-approval from a bank or credit union before you walk into a dealership.
| APR | Monthly payment | Total interest | Difference vs 7% |
|---|---|---|---|
| 5% | $607.48 | $5,104 | −$2,164 |
| 6% | $623.74 | $6,177 | −$1,091 |
| 7% | $640.26 | $7,267 | +$0 |
| 8% | $657.05 | $8,375 | +$1,108 |
| 9% | $674.09 | $9,500 | +$2,233 |
What a bigger down payment does
A down payment reduces what you finance, which cuts both the payment and the interest, and it protects you from owing more than the car is worth early in the loan, when new cars depreciate fastest. Here is the same $36,000 car at 7% over 66 months with different down payments.
| Down payment | Amount financed | Monthly payment | Total interest |
|---|---|---|---|
| $0 | $38,990 | $713.46 | $8,098 |
| $3,600 (10%) | $35,390 | $647.58 | $7,351 |
| $7,200 (20%) | $31,790 | $581.71 | $6,603 |
Paying extra
Adding $100 a month to this loan would pay it off 10 months sooner and save $1,201 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 $36,000 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, $640.26 a month points to a gross income of roughly $76,800 a year to stay at 10%, before insurance, fuel and maintenance. Here the down payment is 11% rather than 20% and the term of 66 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 $36,000 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.
| End of | Loan balance | Est. car value | Equity |
|---|---|---|---|
| Year 1 | $29,585 | $28,800 | −$785 |
| Year 2 | $23,789 | $24,480 | +$691 |
| Year 3 | $17,574 | $20,880 | +$3,306 |
| Year 4 | $10,910 | $17,640 | +$6,730 |
| Year 5 | $3,765 | $15,120 | +$11,355 |
Frequently asked questions
What is the difference between financing and leasing?
Financing is a loan to buy the vehicle, so you own it at the end. A lease is a long-term rental with lower payments but no ownership, mileage limits and end-of-lease fees.
Can I finance a vehicle with no down payment?
Often yes, but the payment, interest and negative-equity risk are higher.
How much is the monthly payment on a $36,000 car?
At 7% over 66 months, financing $34,990 costs about $640.26 a month with $7,267 in total interest. Change the inputs above to match your own quote.
Is a longer loan a good idea on $34,990?
A longer term lowers the payment but increases the total interest and keeps you owing money for longer, which raises the chance of owing more than the car is worth. Most lenders and consumer advocates suggest 60 months or less where the budget allows.
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Estimates from standard loan formulas, not a loan offer or financial advice. Example rates are assumptions: use your own quote.