Use this car loan calculator to estimate your monthly payment, total interest and total cost before you visit a dealer. Enter the vehicle price, your down payment, any trade-in, your state sales tax, the interest rate (APR) and the loan term. Results update instantly.
- Amount financed $0
- Total interest $0
- Total of payments $0
- Sales tax $0
- Total cost (incl. down payment) $0
Navy = principal, orange = interest. Estimate only; your lender’s terms may differ.
How to Use the Car Loan Calculator
- Vehicle price: the negotiated price before taxes and fees.
- Down payment and trade-in: cash you put down and what the dealer gives you for your old car.
- Owed on trade-in: if you still owe money on your trade, it is added to the new loan.
- Sales tax and fees: use your state and local rate; add title, registration and dealer fees you plan to finance.
- APR and term: use the rate from your pre-approval if you have one.
How the Monthly Payment Is Calculated
Car loans use a standard amortization formula: Payment = L × r ÷ (1 − (1 + r)−n), where L is the amount financed, r is the monthly interest rate (APR ÷ 12) and n is the number of monthly payments. The amount financed is the price plus sales tax and financed fees, minus your down payment and trade-in, plus any amount still owed on the trade-in.
In most states the trade-in value is subtracted before sales tax is calculated, which lowers the tax you pay. A few states tax the full price; untick the box in the calculator if yours does.
Example
A $35,000 car with $5,000 down, 6% sales tax, $500 in fees, 7% APR for 60 months means financing about $32,600. The payment is about $646 a month, with roughly $6,130 in total interest.
Average Auto Loan Rates
| Loan type or credit tier | Average APR (Experian, Q2 2026) |
|---|---|
| New car, all borrowers | 6.35% |
| Used car, all borrowers | 11.19% |
| New car, super prime credit | 4.41% |
| New car, deep subprime credit | 16.11% |
Your rate depends on your credit, the loan term, the lender and whether the car is new or used. Getting pre-approved by a bank or credit union gives you a rate to compare with dealer financing.
How to Lower Your Car Payment
- Put more down to reduce the amount financed.
- Improve your credit before applying to qualify for a lower APR.
- Choose a less expensive car or a reliable used model.
- Shop rates from banks, credit unions and dealer financing.
- Be careful with long terms: 72- and 84-month loans lower the payment but cost more interest and raise the risk of owing more than the car is worth.
Related guides: learn how much to put down on a car, how 0% APR deals work, whether to pay off your car loan early, and about the car loan interest tax deduction.
Car Loan Calculator FAQ
How Is a Car Loan Payment Calculated?
It uses the amortization formula: payment equals the amount financed times the monthly rate, divided by one minus one plus the monthly rate raised to the negative number of payments.
Does a Trade-In Reduce Sales Tax?
In most states, yes. The trade-in value is subtracted from the price before sales tax is calculated. Check your state’s rules.
What Is a Good Interest Rate on a Car Loan?
It depends on your credit. Experian reported average new-car loan rates of about 6.35% in Q2 2026, with super prime borrowers averaging 4.41%.
Should I Choose a 60- or 72-Month Car Loan?
A shorter term costs less interest overall. A longer term lowers the monthly payment but increases total interest and the risk of negative equity.
Are Taxes and Fees Included in a Car Loan?
They can be. Many buyers roll sales tax, title and registration fees into the loan, which increases the amount financed.
What Happens If I Owe Money on My Trade-In?
The remaining balance is usually added to your new loan, increasing the amount you finance.