Does a larger down payment lower the APR?

Sometimes a dealer or lender offers a better rate when less of the price is financed. This page does not guess a new APR. If the dealer changes the rate, enter the matching APR and run the comparison again.

Should I count a trade-in as part of the down payment?

A trade-in reduces the amount financed the same way cash down does, after any loan still owed on the trade. This comparison does not have a separate trade-in field. Add the net trade-in credit to each down payment if you want that effect in the table.

Same car, three down payments

Car Down Payment Calculator

Q: How much should I put down on a car?

This calculator does not pick a required down payment. It shows how monthly payment and interest change when the price, APR, and term stay the same and only cash down changes. Many U.S. shoppers compare amounts such as 0, 10, or 20 percent of the price. Enter those dollars as the three down payments.

A larger down payment cuts the amount you finance. That usually lowers the monthly payment and the interest if the APR and term do not change. Enter one vehicle price, one APR, one term, and three down payment amounts. The table shows payment and interest for each row so you can see the cash trade-off in US dollars.

Enter one price, one APR, one term, and three down payments. Then choose Compare down payments.

Payment and interest for each down payment

Down payment	Amount financed	Monthly payment	Interest over the term

How the comparison works

Each row finances the same vehicle price minus that row’s down payment. The monthly payment is a fixed amortizing installment at the APR and term you enter. Interest is the total of payments minus the amount financed for that row. Rate and term stay shared, so the only change is cash down.

There is no separate trade-in box on this page. If you have a net trade-in credit, add it to each down payment you want to test. For a single payment with a dedicated trade-in field, use the Auto Loan Calculator.

How much should I put down on a car?

This calculator will not name a “correct” percent. Some U.S. shoppers compare zero down with 10 percent or 20 percent of the price. Others put down only what they can spare after an emergency fund. Enter those dollar amounts as A, B, and C and read the payment and interest columns.

A thinner down payment can also mean a higher loan-to-value ratio. A lender may then ask for more cash or a different APR. This page does not change the rate for you. If the dealer reprices the loan, type the new APR and compare again.

Examples you can run on this page

A $28,000 vehicle at 6.49 percent APR for 60 months with $2,000 down finances $26,000. The payment is $508.60. Estimated interest is $4,515.88.
The same price, APR, and term with $5,000 down finances $23,000. The payment is $449.91. Estimated interest is $3,994.82.
The same price, APR, and term with $8,000 down finances $20,000. The payment is $391.23. Estimated interest is $3,473.76. Moving from $2,000 down to $8,000 down saves $117.37 a month and $1,042.12 of interest if the rate and term do not change.

Down payment questions

How much should I put down on a car?

Use the three fields to compare amounts you are actually considering. The table shows payment and interest. It does not pick a required down payment for you.

Does a larger down payment always lower the APR?

Not on this page. The APR stays the number you enter. If a lender offers a better rate with more cash down, enter that rate yourself.

Can I include a trade-in in this comparison?

Add the net trade-in credit to each down payment. The calculator does not have a fourth money field for trade-in on this page.

Other calculators on this site

Auto Loan Calculator — one monthly payment, including a trade-in field.
How much car you can afford — a budgeted payment turned into a maximum price.
Auto loan interest and total cost — payment, totals, and interest on one loan.
Lease vs buy — monthly amounts and cash totals only.