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Car Down Payment Calculator
See what each down payment does to your monthly payment, total interest, and loan-to-value.
Updated October 22, 2026 · Rate data: Federal Reserve via FRED, August 2026
Quick answer: Aim for 20% down on a new car and at least 10% on a used one. On a $35,000 car at the current average new-car loan rate of 7.54% for 60 months, 20% down cuts the payment from $701.99 to $561.59 a month and saves $1,423.92 in interest compared with $0 down.
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0% vs 10% vs 20% Down, Side by Side
Same car, rate, term and trade-in as above. Updates as you type.
| Down | Payment | Total interest | LTV |
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How This Works
Amount financed = car price − down payment − trade-in. The monthly payment uses the standard loan formula M = P × r ÷ (1 − (1 + r)−n), where r is the APR ÷ 12 and n is the number of months. LTV is the amount financed divided by the car price. Sales tax and fees aren't included here; to add them, use the auto loan calculator with taxes and fees.
Worked example: $35,000 car, 20% down ($7,000), no trade-in, so you finance $28,000. At 7.54% for 60 months, r = 0.0754 ÷ 12 = 0.0062833, and the payment is $28,000 × 0.0062833 ÷ (1 − 1.0062833−60) = $561.59. Sixty payments total $33,695.70, so interest is $5,695.70.
Not sure what price to plug in? Start with how much car you can afford, then compare loan lengths in 60 vs 72 vs 84 month car loans.
Car Down Payment FAQ
How much should I put down on a car?
A common target is 20% down on a new car and at least 10% on a used car. Those amounts lower your payment and interest and help keep the loan below what the car is worth. Many lenders accept less, but each dollar you put down is a dollar you don't pay interest on.
How much does a bigger down payment save?
On a $35,000 car at 7.54% APR for 60 months, 20% down ($7,000) cuts the payment from $701.99 to $561.59 a month and saves $1,423.92 in interest compared with $0 down.
What is loan-to-value (LTV) on a car loan?
LTV is the loan amount divided by the car's price. Borrowing $28,000 on a $35,000 car is 80% LTV. A lower LTV usually means better loan terms and less chance of owing more than the car is worth.
Does a trade-in count as a down payment?
Yes. Your trade-in value lowers the amount you finance the same way cash does, so this calculator subtracts both from the price.
Source: Board of Governors of the Federal Reserve System, finance rate on consumer installment loans at commercial banks, new autos, 60-month loan (RIFLPBCIANM60NM), 7.54% for August 2026, retrieved from FRED October 21, 2026.
Related: Auto Loan Calculator | How Much Car Can I Afford? | True Cost of Owning a Car Per Month