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Car Loan Comparison Calculator

How do two car loan offers compare?

Enter two car financing offers and see which costs less under your assumptions, and by how much.

One Click Answers · Car Loan Comparison
oneclickanswers.com/car-loan-comparison · Printed
About this tool & how to use it

What it does

Compares two or more car loan offers side by side, including a rebate versus a low interest rate, and shows the monthly payment and the total cost of each.

How to use it

  1. Fill in Offer A and Offer B. They can differ in price, rebate, APR, term, down payment, trade-in and fees.
  2. For a rebate versus low APR choice, put the cash rebate and the higher APR in one offer, and no rebate with the promotional APR in the other.
  3. Read the sentence at the top for the total-cost difference, then the side-by-side figures. Open "Show calculation details" for the intermediate numbers.

Enter the vehicle price, APR and loan term for every offer to compare them.

    Assumptions

    • Fixed APR and level monthly payments, with the interest rate divided by 12 each month (no daily compounding).
    • Sales tax is added to the amount financed, not paid separately in cash.
    • Both offers describe the same kind of purchase. The tool compares costs only, not the value of the vehicle, warranties or anything else about the deal.
    • Insurance, maintenance, registration changes and early-payoff terms are not included.

    Printed from oneclickanswers.com. Results are estimates based on what was entered; see the assumptions above.

    How we calculated this

    Each offer is calculated on its own. The trade-in equity is the trade-in value minus what is still owed on it. Positive equity reduces what you finance. Negative equity is added to the financing and is shown as its own line.

    Sales tax is the rate you enter times a taxable amount. Tax rules differ by place, so you choose what is taxable: the trade-in value reduces it by default, the rebate does not by default, and you can type a taxable amount yourself. This is not a tax calculator.

    Amount financed = price - rebate + sales tax + fees you roll into the loan - down payment - trade-in value + trade-in payoff. Fees you pay in cash are counted in "cash due now" instead. The monthly payment uses the standard fixed-rate formula, with payments made at the end of each month.

    Total estimated cost = cash due now + all scheduled payments. Financing cost = total interest + fees. Amounts are not rounded while calculating and are shown to the cent, so totals can differ from a lender's printed schedule by a few cents.

    Formulas and details
    • r = APR / 100 / 12 (monthly rate); n = number of monthly payments; P = amount financed.
    • Monthly payment M = P x r x (1 + r)^n / ((1 + r)^n - 1). When APR is 0%, M = P / n.
    • Total payments = M x n. Total interest = total payments - P.
    • Net trade equity = trade-in value - trade-in payoff (negative means negative equity).

    Assumptions

    • Fixed APR and level monthly payments, with the interest rate divided by 12 each month (no daily compounding).
    • Sales tax is added to the amount financed, not paid separately in cash.
    • Both offers describe the same kind of purchase. The tool compares costs only, not the value of the vehicle, warranties or anything else about the deal.
    • Insurance, maintenance, registration changes and early-payoff terms are not included.

    Example

    Input: A $40,000 car, 60 months. Offer A: $3,000 cash rebate at 5.9% APR. Offer B: no rebate at 1.9% APR. No tax, fees, down payment or trade-in.

    Result: Offer A finances $37,000 and pays $713.59 a month ($5,815.67 interest, $42,815.67 total). Offer B finances $40,000 and pays $699.36 a month ($1,961.71 interest, $41,961.71 total). Under these assumptions Offer B has an estimated total cost $853.95 lower.

    Questions

    How does a rebate compare with a low APR?

    A rebate lowers the amount you finance but usually comes with a higher APR. A promotional APR costs less interest but gives no rebate. Enter each as its own offer to see the estimated total cost of both.

    What if I owe more on my trade-in than it is worth?

    That is negative equity. If you roll it into the new loan, it is added to the amount financed and shown on its own line.

    Does this calculate my sales tax?

    No. You enter a tax rate, and the page shows what amount it is applied to. Tax rules vary by place, so check the taxable amount with your dealer or tax authority.

    Why might my lender's numbers differ slightly?

    Lenders round each payment to the cent, may count days differently, and may charge fees this tool does not know about. Use the lender's own disclosure for the exact figures.

    Last reviewed 2026-10-01.

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