The car fits your needs, but the payment feels too high. The dealer offers a longer loan to bring it down. That may help your monthly budget. But how much more will you pay for the same car?

A lower payment, a longer commitment

For example, borrowing $35,000 at a fixed 7% rate costs about $693 a month over 60 months, or $528 over 84 months. The longer loan lowers the payment by about $165, but adds roughly $2,790 in interest. These estimates assume equal monthly payments and no lender fees.

Use the calculator to compare terms. Each bar includes your down payment, the amount borrowed, and the interest paid over the loan.

What a larger down payment changes

A down payment is part of the purchase price, paid upfront. It reduces what you borrow. At the same rate and term, borrowing less lowers both the payment and the interest. It does not reduce the price of the car.¹

Compare the whole loan offer

Get a bank or credit union offer to compare with the dealership’s financing. For each offer, check the amount financed, APR, loan length, and total finance charge. Keep the car price and down payment the same.¹,²

Use APR to compare borrowing costs because it includes certain credit fees. This calculator uses the interest rate alone. Choose a payment you can manage with a clear view of the total you will pay.¹

Sources

1. CFPB: How to compare auto loan offers

2. FTC: Financing or Leasing a Car