How is a car loan payment calculated?
Your amount financed is the vehicle price plus sales tax, minus your down payment and any trade-in value. That amount is then repaid monthly with interest using the standard loan formula over your chosen term.
Car payment per 10,000 financed
Monthly payment for every 10,000 borrowed, by rate and term. Multiply by your amount: financing 25,000 is 2.5 times the figure. Tax and fees you roll into the loan count as borrowed too.
| Rate | 36 mo 3 yr | 48 mo 4 yr | 60 mo 5 yr | 72 mo 6 yr | 84 mo 7 yr |
|---|---|---|---|---|---|
| 3% | 291 | 221 | 180 | 152 | 132 |
| 4% | 295 | 226 | 184 | 156 | 137 |
| 5% | 300 | 230 | 189 | 161 | 141 |
| 6% | 304 | 235 | 193 | 166 | 146 |
| 7% | 309 | 239 | 198 | 170 | 151 |
| 8% | 313 | 244 | 203 | 175 | 156 |
| 9% | 318 | 249 | 208 | 180 | 161 |
| 10% | 323 | 254 | 212 | 185 | 166 |
| 12% | 332 | 263 | 222 | 196 | 177 |
Ways to lower your payment
- Put down a larger down payment or trade in a vehicle
- Shop for a lower APR (your credit score matters a lot here)
- Choose a shorter term to cut total interest — even if the monthly is higher
What is the monthly payment on a $30,000 car loan?
About $594 a month at 7% over 60 months, with $5,642 of interest in total. Over 72 months it drops to $511 but the interest rises to $6,826.
Is a 72-month car loan a bad idea?
It lowers the payment but costs more interest and keeps you owing more than the car is worth for longer. On $25,000 at 6%, 72 months costs $4,831 in interest against $3,182 over 48 months.
Should I take the longest term for a low payment?
Be careful — long terms (72–84 months) mean much more interest and a higher risk of owing more than the car is worth.
Is sales tax always financed?
It depends on your region and lender. This calculator adds tax to the financed amount; you can set tax to 0 if you pay it upfront.