Car Loan Calculator
Your estimate — 15% is a common starting point
Monthly payment
$640.60
- Out-the-door price(price + tax + fees)
- $34,740
- Amount financed
- $32,740
- Loan as % of out-the-door
- 94.2%
- Total interest
- $5,696
- Total paid over the term
- $38,436
- Right-side up in(loan balance vs car value)
- month 11
Balance versus what the car is worth
| Month | Loan balance | Car value | Equity |
|---|---|---|---|
| 12 | $27,012 | $27,200 | $188 |
| 24 | $20,901 | $23,120 | $2,219 |
| 36 | $14,380 | $19,652 | $5,272 |
| 48 | $7,423 | $16,704 | $9,281 |
Car value uses your depreciation figure — negative equity means you would owe money to sell the car.
Three down payment sizes
| Down | Financed | Monthly | Interest | Right-side up |
|---|---|---|---|---|
| $0 | $34,740 | $679.73 | $6,044 | month 20 |
| $3,200 | $31,540 | $617.12 | $5,487 | day one |
| $6,400 | $28,340 | $554.50 | $4,930 | day one |
- • You start underwater — the balance and the car value cross in month 11.
- • Depreciation is your own estimate: cars of the same price can lose value at very different rates, and a bigger down payment is the only lever that shortens the underwater stretch immediately.
Trading something in changes the maths — the auto loan calculator with trade-in handles the trade credit, negative equity and the sales-tax base.
A $32,000 car with $2,000 down, 7% sales tax and $500 of fees leaves $32,740 financed — $640.60 a month for 60 months at 6.5%, $5,696 of interest, and a balance that starts above what the car is worth. At 15% annual depreciation, loan balance and car value cross in month 11; with nothing down the crossover does not come until month 20.
What the down payment actually changes
A down payment does three things at once, and only the first is obvious:
amount financed out-the-door price − cash down
monthly payment the financed amount, spread over the term at your APR
equity timeline how fast the falling balance catches the falling car value
On the default example, the out-the-door price is $34,740 — the sticker price plus $2,240 of sales tax and $500 of fees. Skip the down payment and the loan is the whole $34,740; bring $6,400 and it drops to $28,340. Every dollar down is a dollar you never pay interest on, and a dollar of equity you own from day one.
Term length is the other half of the decision
The same $32,000 car, the same $2,000 down, four terms:
| Term | Monthly | Total interest | Right-side up in |
|---|---|---|---|
| 36 months | $1,003.45 | $3,384 | month 2 |
| 48 months | $776.43 | $4,529 | month 5 |
| 60 months | $640.60 | $5,696 | month 11 |
| 72 months | $550.36 | $6,886 | month 25 |
The monthly payment falls by 45% between the shortest and longest term, and the interest nearly doubles. The last column is the one that gets people: at 72 months you spend two years owing more than the car is worth, which means selling it or trading it in still costs you money.
Being upside down, in plain numbers
Depreciation starts the moment you drive away. With the default 15% a year, the $32,000 car is worth $27,200 after twelve months while the loan still stands at $27,012 — barely $188 of equity after a year of payments. By month 48 the gap has opened to $9,281, because the balance falls faster than the value once the loan is mostly principal.
The crossover month is the useful figure because it answers the real question: if I had to sell this car, when would I walk away with money instead of a bill? A bigger down payment moves it immediately; a longer term pushes it out.
Depreciation here is your number, not ours. Trucks and some SUVs hold value far better than the average, and luxury sedans often do worse. Change the rate to match what you actually expect.
How to use this calculator
- Enter the vehicle price — the negotiated price, before tax and fees.
- Enter your cash down payment. Zero is a valid answer, but watch what it does to the equity timeline.
- Set the APR, the term, your state's sales tax rate and your title, doc and registration fees.
- Set the depreciation rate you expect for this vehicle.
- Read the monthly payment, then the "right-side up in" line and the balance-versus-value table.
Frequently asked questions
How much should I put down on a car?
Twenty percent is the common guideline, because it keeps the loan below the car's value almost immediately. Ten percent is a reasonable floor if cash is tight — on the default example, $3,200 down means you are never upside down at all.
Why does the loan start above the car's value?
Tax and fees. A $32,000 car becomes $34,740 out the door, so unless the down payment covers the tax and fees, the loan begins larger than the car is worth even before any depreciation.
Does a bigger down payment lower my APR?
Sometimes. Lenders price by loan-to-value and credit profile, so moving below certain LTV thresholds can improve the rate. The calculator holds the APR constant, so enter a better rate yourself if your lender quotes one.
Is a 72-month car loan a bad idea?
It is cheaper per month and much more expensive overall, and it keeps you upside down for years. It also means paying for a car that may need major repairs before it is paid off. Shorter terms cost more each month but less in total.
What if I am already upside down on my current car?
The difference rolls into the next loan, which makes the next one harder to pay off. If you are trading in, the auto loan calculator with trade-in handles negative equity and how each state taxes the trade credit.
Should I include gap insurance?
If you are financing with little down or a long term, gap coverage pays the difference between the car's value and the loan if it is totaled — exactly the gap this calculator shows. It is worth pricing whenever the crossover month is far out.
Data sources: Payments use the standard amortizing loan formula on your APR, term and financed amount; sales tax, title and registration fees are your own figures, since they vary by state and dealer. Depreciation is an assumption you supply — 15% a year is a common starting point for a new vehicle, and the timeline changes sharply with it, so treat the crossover month as an estimate rather than a fact. Manufacturer rebates, dealer add-ons and gap insurance are not modeled. All calculations run in your browser — nothing you enter is transmitted. Trading something in? Use the auto loan calculator with trade-in.