Auto loan costs: compare more than the monthly payment
The amount financed in this calculator is the vehicle price minus your down payment. With a fixed rate and equal monthly payments, part of each payment covers interest and the remainder pays down the principal. A longer term usually lowers the monthly payment but gives interest more months to accrue.
Compare the full cost
For example, a $30,000 vehicle with a $5,000 down payment starts with $25,000 financed, before any taxes, title fees, dealer add-ons, or other charges. Use the result to compare terms, then review the written offer for the actual amount financed and total of payments.
APR is not always the same as the interest rate: APR can include certain required loan fees. This tool uses the APR field as the fixed annual rate in its monthly payment formula, so it does not separately model fees that may be included in a real loan’s APR. The Consumer Financial Protection Bureau’s auto-loan guide recommends comparing APR, term, amount financed, monthly payment, and total cost—not the payment alone.
Tips for accurate results
Use the out-the-door price rather than the sticker price: include sales tax, title and registration fees, and any dealer charges, then subtract your down payment and the trade-in value. Enter the APR from a written offer, because a verbal rate may leave out fees. Run two or three term lengths to see how the total interest changes.
Common mistakes and limits
A monthly payment alone can hide a costly deal. Longer terms lower the payment but raise total interest, and rolling a balance from a previous loan into a new one means you start by owing more than the car is worth. Insurance, fuel, and maintenance are not part of this calculation, but they belong in your budget.
Learn more: Loan interest, APR and the real cost of borrowing.