What a car really costs
The price on the window is not the price you pay. Enter the car, the trade-in and the rate to see the payment, the interest and the total, and what a longer term does to all three.
Title, registration, dealer documentation
US average on a 60-month new car loan was 7.14% in 2026Q2
$736.68 a month for 60 months, and the car costs $48,201 in the end.
| Term | Monthly | Total interest | Against 60 months |
|---|---|---|---|
| 36 months | $1,147.30 | $4,223 | −$2,898 interest |
| 48 months | $890.34 | $5,656 | −$1,465 interest |
| 60 months | $736.68 | $7,121 | — |
| 72 months | $634.67 | $8,616 | +$1,496 interest |
| 84 months | $562.18 | $10,143 | +$3,022 interest |
A longer term lowers the payment and raises the total. It also keeps you owing more than the car is worth for longer, because a car loses value fastest in its first years.
Educational estimate, not financial advice. Everything is calculated in your browser — nothing you enter is sent anywhere or saved.
How this calculator works
The amount financed is the price plus sales tax and fees, less the down payment and trade-in. The payment is the standard fixed-rate instalment formula: interest at APR ÷ 12 on the balance still owed, over the term you choose.
No trade-in loan balance, no gap insurance, no dealer add-ons and no manufacturer subsidised rate. A promotional 0% offer is entered simply as a rate of 0.
Common questions
What is the monthly payment on a $38,000 car?
With $4,000 down, 6% sales tax and $800 in fees, that is $37,080 financed. At 7.14% over 60 months the payment is $736.68 and the interest $7,121.
Is a 72- or 84-month car loan a bad idea?
It lowers the payment and raises the cost: the same loan over 84 months costs $562.18 a month but $10,143 in interest, $3,022 more than over 60 months. It also keeps you owing more than the car is worth for longer, which is a problem if it is written off or you need to sell.
What counts towards the amount financed?
The price plus sales tax and fees, less the down payment and any trade-in. Tax and fees are usually rolled into the loan, which is why the amount financed is larger than the sticker price minus the deposit.
Why are car loan rates higher than mortgage rates?
A car is worth less every year, so the lender’s security shrinks while the loan runs. A house usually does not. That, plus the shorter term, is why car rates sit a few points above mortgage rates and well below credit card rates.
Sources
- Average new car loan interest rateFederal Reserve Board — G.19 Consumer Credit (finance rates on consumer loans at commercial banks)2026Q2
All figures are fetched from the publishers above when this site is built; your browser does not contact them. This site is independent and is not affiliated with, sponsored or endorsed by the Federal Reserve System, any Federal Reserve Bank or any government agency. Nothing here is financial advice.