Estimate your monthly car payment including sales tax, down payment, and trade-in. See total interest and full loan cost instantly.
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Enter the vehicle price — the sticker price or negotiated price before any extras. Then add your down payment (cash you're paying upfront) and trade-in value (the value the dealer will give you for your current car). Both reduce the amount you need to finance. Enter your local sales tax rate, select your loan term, and enter the interest rate you've been offered or expect to qualify for.
The calculator instantly shows your monthly payment, total interest paid, total loan cost, and the amount you're financing. Use the loan term toggle to compare how switching from 60 to 48 months affects your monthly payment and total interest.
Car loan payments use the standard amortization formula:
Over 60 months, that's $38,040 total — meaning you paid roughly $5,590 in interest on top of the amount financed.
Leasing is essentially a long-term rental. You pay for the depreciation during the lease period, not the full vehicle value. This results in lower monthly payments but you own nothing at the end. Leases come with mileage limits (typically 10,000–15,000 miles/year) and excess wear-and-tear charges.
Buying costs more per month but you're building equity in an asset. Once the loan is paid off, you have a payment-free vehicle. You can sell or trade it anytime. Buying makes more financial sense if you:
Rule of thumb: If you keep a car for 7+ years after paying it off, buying almost always wins financially over leasing repeatedly.
Your monthly payment is calculated using the amortization formula M = P[r(1+r)^n]/[(1+r)^n-1]. The amount financed (P) equals vehicle price plus sales tax, minus your down payment and trade-in. The monthly rate (r) is your APR divided by 12, and n is your total number of monthly payments.
In 2025, borrowers with excellent credit (750+) can expect new car rates of 4–6%, while good credit (700–749) typically sees 6–8%. Used car rates run 1–3% higher. If you're quoted above 10%, consider improving your credit score or looking for better financing through a credit union before signing.
A shorter term (36–48 months) costs more per month but saves significantly in total interest and keeps you from being "underwater" — owing more than the car is worth. A 72-month loan may reduce monthly payments but can cost thousands more in interest. Most financial advisors recommend keeping auto loans to 60 months or less.
Buying is generally better financially if you keep the car for 5+ years after paying it off. Leasing offers lower monthly payments and always driving a newer vehicle, but you build no equity and face mileage limits. If you drive over 15,000 miles/year or want to customize the car, buying is almost always the better financial choice.