DecodedCarsCar loan calculator
See the monthly payment and what the loan really costs — then compare loan lengths side by side.
Same car, different loan lengths
Longer loans lower the payment but cost more interest, and you can owe more than the car is worth for longer.
Balance by year
How this is calculated
Amount financed = price + sales tax + fees − down payment − trade-in + any amount still owed on the trade-in. Sales tax is charged on the price minus the trade-in, as in most U.S. states (some states tax the full price). The payment uses the standard fixed-rate amortization formula with monthly compounding.
The APR here is only an example — use the rate from your own pre-approval or the dealer's quote. Rates depend on your credit, the loan length and whether the car is new or used. This is an estimate, not a loan offer.
How to pay less for a car loan
- Get pre-approved by your bank or credit union before visiting the dealer, so you have a rate to compare.
- Negotiate the car's price separately from the monthly payment — a low payment can hide a longer loan.
- A bigger down payment cuts the interest and the risk of owing more than the car is worth.
- Check the fees and add-ons (extended warranties, insurance products) before you sign.
A popular rule of thumb: put at least 20% down, borrow for no more than four years, and keep total car costs (including insurance) under 10% of gross income. It isn't always possible, but it shows how far a deal stretches you.