Every $1,000 you put down on a car loan lowers your monthly car payment calculation by roughly $18 to $22 per month (on a 60-month loan) while reducing your loan-to-value (LTV) ratio and total interest charges. Use our car down payment calculator below to test how cash down and trade-in equity transform your loan.
Down Payment Impact Calculator
✓ US Truth-in-Lending (TILA) CompliantCompare 0% down vs 10% down vs 20% down on your monthly payment, total interest, and loan-to-value ratio.
US Truth in Lending Act (TILA) Disclosure: Calculations are estimates for planning purposes. Actual monthly car payment, annual percentage rate (APR), sales taxes, title/registration charges, and dealer documentation fees depend on your credit profile, lender terms, and US state/county registration rules.
Comparison: 0% Down vs. 10% Down vs. 20% Down ($35,000 Car)
| Down Payment Tier | Cash Down | Amount Financed (w/ 7.25% Tax & Fees) | Monthly Payment (60 Mo @ 6.84%) | Total Interest Paid | LTV & GAP Risk |
|---|---|---|---|---|---|
| 0% Down | $0 | $38,196.50 | $753.47 / mo | $7,011.70 | 109% LTV • High underwater risk |
| 10% Down | $3,500 | $34,696.50 | $684.43 / mo | $6,369.30 | 99% LTV • Moderate risk |
| 20% Down (Recommended) | $7,000 | $31,196.50 | $615.39 / mo | $5,726.90 | 89% LTV • Instant positive equity |
Also trading in a vehicle? Learn how trade-in tax credits work in our guide to trade-in equity and state sales taxes, or calculate your full budget on our car payment calculator.