Car Payment Calculator
A car payment calculator answers the question every buyer asks first: what will this car cost me every month? Enter the price, your down payment, the APR and the term, and the auto loan calculator above shows the monthly payment, the total interest and the payoff date. With the defaults loaded — a $35,000 car, $3,500 down, 6.35% APR over 60 months — the payment is $614.12 a month, with $5,347.37 of interest over the life of the loan.
The payment is only half the story. A payment that looks affordable can still be a bad deal if the term is so long that you pay thousands extra in interest, or if the payment eats so much of your income that one emergency breaks the budget. This page shows how the payment is built, how to check it against your take-home pay, and what the payment looks like at different prices, rates and terms, so you can judge the deal before you sign.
How Your Car Payment Is Built
Three things decide your payment: the amount financed, the APR and the term. The amount financed is the price minus your down payment and trade-in, plus sales tax and fees. The APR sets how much interest each month adds to the balance. The term decides how many months you spread the repayment over. The amortization formula combines them into one fixed monthly payment, so the payment never changes during the loan — only the split between interest and principal changes. In month one of the default loan, $166.69 of the $614.12 payment is interest and $447.43 is principal. By the final month, almost the whole payment is principal.
That split is why the payment feels so different from the price. A $35,000 car does not cost $35,000 on finance: with $3,500 down and 6.35% over 60 months, the total paid is $36,847.37, which is $1,847.37 more than the price even after the down payment. The gap is the interest, and it grows with the rate and the term. A used-car loan at 11.19% on the same $31,500 costs $687.87 a month and $9,772.49 of interest, which is $4,425.12 more interest than the new-car rate.
- Amount financed. The loan itself: $31,500 on the defaults. Bigger loans mean bigger payments.
- APR. The yearly rate, divided by 12 each month. The single biggest driver of total cost.
- Term. 36 to 84 months. Longer terms cut the payment but raise the interest.
- Extra payments. $100 extra a month on the defaults finishes the loan in 51 months and saves $880.34.
Step 1 — Start From the Price, Not the Payment
Dealers love to talk about the monthly payment, because they can make almost any payment work by stretching the term. Start from the price instead: negotiate the out-the-door price first, then work out the payment. A $35,000 car with $3,500 down leaves $31,500 to finance. If you can get the price to $33,000, the loan falls to $29,500 and the payment falls to about $575 a month on the same terms.
Step 2 — Check the Payment Against Your Pay
The usual rule is to keep the car payment under 10% of your monthly take-home pay. A $614.12 payment fits a take-home pay of about $6,150 a month. The average new-car payment of $765 a month fits a take-home pay of about $7,650. If the payment is more than 10% of what you bring home, the car is probably too expensive, whatever the dealer says.
Step 3 — Compare Terms Before You Choose
Run the same loan at 48, 60 and 72 months and look at the interest, not just the payment. On the defaults, 48 months costs $744.84 a month and $4,252.50 of interest; 60 months costs $614.12 and $5,347.37; 72 months costs $527.27 and $6,463.15. The 72-month loan saves $86.85 a month against the 60-month loan but costs $1,115.78 more interest. If you can afford the shorter term, take it.
Worked Examples: Car Payments at Different Prices
The table below uses 10% down, 6.35% APR and a 60-month term, so you can see how the payment scales with the price of the car.
| Car price | Down payment (10%) | Loan amount | Monthly payment | Total interest |
|---|---|---|---|---|
| $20,000 | $2,000 | $18,000 | $350.93 | $3,055.80 |
| $25,000 | $2,500 | $22,500 | $438.66 | $3,819.60 |
| $35,000 | $3,500 | $31,500 | $614.12 | $5,347.37 |
| $50,000 | $5,000 | $45,000 | $877.32 | $7,639.20 |
| $65,000 | $6,500 | $58,500 | $1,140.52 | $9,931.20 |
The payment scales almost exactly with the price: doubling the price from $25,000 to $50,000 doubles the payment from $438.66 to $877.32. That makes the price the most powerful lever you have. A $10,000 cheaper car saves about $175 a month on these terms, which is about $10,528 over five years. The total interest figures come from the calculator above; run your own price through it to check.
How to Use the Car Payment Calculator
Five inputs give you the payment, the interest and the full schedule.
- Enter the vehicle price. The default is $35,000. Use the out-the-door price if you have it.
- Enter the down payment. The default is $3,500. A bigger down payment cuts the loan and the payment.
- Add the trade-in. Enter the trade-in value and anything still owed on it. Negative equity raises the loan.
- Set the APR and term. The default is 6.35% over 60 months. Use the new-car or used-car quick-fill for the 2026 averages, or type your own rate.
- Read the payment and the comparison. The calculator shows the monthly payment, the total interest, the payoff date, the same loan at 48, 60 and 72 months, and the month-by-month schedule.
What the Calculator Reports
Each figure answers a different question about the deal.
| Figure | What it is | Use it for |
|---|---|---|
| Monthly payment | Fixed amount due every month | Budgeting and the 10% rule |
| Loan amount financed | Price minus down payment and trade-in, plus tax and fees | Seeing what you really borrow |
| Total interest | All interest over the loan | Comparing rates and terms |
| Total paid | Principal plus interest | The true cost of the car |
| Payoff date | When the loan ends | Planning when the car is yours |
| Term comparison | Same loan at 48, 60 and 72 months | Picking the right term |
Common Mistakes With Car Payments
Most payment mistakes come from looking at the payment and nothing else.
- Accepting a long term to hit a payment. An 84-month loan can make any car look affordable, but it adds $2,252.37 of interest to the default loan against a 60-month term.
- Ignoring the total interest. Two loans with the same payment can cost thousands apart in interest if the terms differ.
- Forgetting insurance and running costs. The payment is not the cost of owning the car. Insurance, fuel and maintenance sit on top.
- Not getting pre-approved. A dealer rate can be several points above what your bank would offer, which adds hundreds to the total.
- Rolling in extras. Extended warranties and add-ons financed into the loan are paid for with interest too.
Tips for a Payment You Can Live With
A payment that fits your budget is a payment you can keep paying for five years.
- Use the 10% rule. Keep the payment under 10% of your monthly take-home pay. At $5,000 take-home, that is $500 a month.
- Put at least 10% down. It cuts the loan, the payment and the interest, and it keeps you from owing more than the car is worth.
- Shorten the term when you can. A 48-month loan on the defaults costs $744.84 a month but saves $1,094.87 of interest against 60 months.
- Pay a little extra. $100 extra a month on the default loan finishes it in 51 months and saves $880.34 of interest.
- Check the used-car rate gap. The same $31,500 loan costs $687.87 a month at the 11.19% used-car average, against $614.12 at 6.35%.
Car Payment Quick Answers
The payment for a given loan follows the same pattern every time: here are the reference numbers for the defaults.
| Loan ($31,500 at 6.35%) | Monthly payment | Total interest |
|---|---|---|
| 36 months | $963.29 | $3,178.60 |
| 48 months | $744.84 | $4,252.50 |
| 60 months | $614.12 | $5,347.37 |
| 72 months | $527.27 | $6,463.15 |
| 84 months | $465.47 | $7,599.74 |
| 60 months at 11.19% (used) | $687.87 | $9,772.49 |
| 60 months plus $100 extra | $714.12 | $4,467.03 |
Related tools on this site: the main auto loan calculator, the loan payment calculator for other loans, and the salary calculator to work out your take-home pay. NerdWallet’s auto loan calculator is a useful second check on the same numbers.
Frequently Asked Questions
What is the monthly payment on a $35,000 car?
With $3,500 down, 6.35% APR and a 60-month term, the payment is $614.12 a month. The loan is $31,500, the total interest is $5,347.37 and the total paid is $36,847.37. At the used-car average APR of 11.19%, the same loan costs $687.87 a month.
How much car can I afford on $5,000 a month take-home pay?
Using the 10% rule, your payment should stay under $500 a month. At 6.35% over 60 months with 10% down, a $500 payment buys a car priced at about $28,500. Use the calculator above to check your own pay and down payment.
Is $700 a month a lot for a car payment?
It is above the 2026 average used-car payment of $542 and close to the average new-car payment of $765. Whether it is a lot depends on your pay: $700 a month fits a take-home pay of about $7,000 a month under the 10% rule.
Does paying extra lower my car payment?
Extra payments do not change the scheduled monthly payment, but they shorten the loan and cut the interest. Adding $100 a month to the default loan finishes it in 51 months instead of 60 and saves $880.34 of interest.
Why is my payment higher than the calculator says?
The usual reasons are a higher APR than the one you entered, sales tax and fees added to the loan, or add-ons such as an extended warranty financed into the deal. Enter the out-the-door price, the tax and the fees in the calculator to match the dealer’s figure.
Disclaimer: This calculator is for general information only and is not financial advice. Rates and payments are estimates based on the numbers you enter; your lender’s actual offer depends on your credit score, the vehicle and current market rates. Check the terms with your lender before signing.