How is a car payment calculated?
Your payment depends on four things: the amount you finance, the interest rate (APR), the loan length, and your down payment. The amount financed is the car's price plus dealer fees, minus your down payment and trade-in. The calculator adds all of those for you. Taxes, title and registration are not included.
Here's what a $15,000 car costs per month with $2,000 down over 60 months, at the example rate for each credit range:
| Credit range | Example APR | Amount financed | Monthly payment | Total interest |
|---|---|---|---|---|
| Excellent (781+) | 9.9% | $13,412 | $284 | $3,646 |
| Good (661–780) | 14.9% | $13,412 | $318 | $5,690 |
| Fair (601–660) | 19.9% | $13,412 | $355 | $7,863 |
| Rebuilding (600 or below) | 25% | $13,412 | $394 | $10,208 |
The amount financed is $15,000 plus the $377 documentation fee, and $35 electronic filing fee, minus the $2,000 down payment. Taxes, title and registration are not included.
How loan length changes your payment
A longer loan lowers the monthly payment but costs more interest. Same $15,000 car, $2,000 down, 14.9% APR:
| Loan length | Monthly payment | Total interest |
|---|---|---|
| 36 months | $464 | $3,302 |
| 48 months | $373 | $4,472 |
| 60 months | $318 | $5,690 |
| 72 months | $283 | $6,955 |
If a longer term is what gets your payment where you need it, you can still pay the loan off early or trade the car in later. Our guide to how much car you can afford walks through picking a payment that fits your budget.
What the calculator includes
- Dealer fees: our $377 documentation fee and $35 electronic filing fee, the same ones listed on every car page.
- Trade-in: what your car is worth comes off the price. If you still owe on it, the payoff is added to the loan. Get a free offer on your car.
- Not included: taxes, title and registration. We go over them with you at the dealership.
Ready for a real number?
The calculator gives you an estimate. A pre-approval gives you the real one. We run your application with one or two banks first, go over the results with you, and only then decide together whether to send it to more lenders. Every credit situation is welcome, and you can read how our bad credit car loans work.