Auto Loan Calculator
Estimate your monthly car payment with sales tax, fees, trade-in and rebates, and see how the loan term changes what you pay.
Auto Loan Calculator
Your car payment depends on the amount financed, APR and loan term. Financing $33,050 (a $35,000 car, $5,000 down, 7% sales tax and fees rolled in) at 7% for 60 months costs $654 a month and $6,216 in interest. Stretching to 84 months lowers the payment to $499 but raises interest to $8,850.
How to use this auto loan calculator
- Enter the vehicle price and any cash down payment.
- Add your trade-in value and the amount you still owe on it. If you owe more than it is worth, the difference is rolled into the loan.
- Enter the manufacturer rebate, your combined state and local sales tax rate, and title, registration and dealer fees.
- Choose the APR and loan term. Check the term comparison table to see the cost of each option.
- Add an extra monthly payment if you plan to pay the loan off early.
The math behind the result
Amount financed = price − rebate − down payment − trade-in value + amount owed on trade-in + sales tax + fees (tax and fees only if you roll them in).
Payment = P × r ÷ (1 − (1 + r)−n), where P is the amount financed, r is APR ÷ 12 and n is the number of months.
Sales tax is charged on the price minus your trade-in in most states, but a few states tax the full price.
Worked example
$35,000 car, $5,000 down, no trade-in, 7% sales tax ($2,450), $600 in fees, 7% APR:
- Amount financed: $33,050
| Term | Monthly payment | Total interest |
|---|---|---|
| 48 months | $791 | $4,938 |
| 60 months | $654 | $6,216 |
| 72 months | $563 | $7,520 |
| 84 months | $499 | $8,850 |
Going from 60 to 84 months cuts the payment by $155 but adds $2,634 in interest.
What is a good auto loan rate in 2026?
Edmunds reported an average new-car APR of about 7.0% in the second quarter of 2026, with an average loan of roughly 70 months. Used-car loans usually cost more, and rates vary widely by credit score: borrowers with excellent credit often qualify well below the average, while subprime borrowers can pay double-digit rates. Get a pre-approval from a bank or credit union before visiting the dealer so you can compare it with the dealer’s offer.
How long should a car loan be?
Shorter is cheaper. A 48-month loan on the example above costs $3,912 less in interest than an 84-month loan. Long terms also raise the risk of negative equity, where you owe more than the car is worth. Edmunds found that more than a third of new-car loans now run longer than 72 months. If you need a 72- or 84-month term to afford the payment, consider a less expensive car or a larger down payment.
Negative equity and trade-ins
If you owe $18,000 on a car worth $15,000, you have $3,000 of negative equity. Rolling it into your next loan means you pay interest on your old car too. Enter both the trade-in value and the amount owed, and the calculator adds the shortfall to the amount financed.
Cash rebate or low APR?
Dealers often offer a choice between a rebate and a special low rate. Run the calculator twice: once with the rebate and your bank’s rate, once with no rebate and the promotional rate. Pick the lower total cost, not the lower payment.
Rules of thumb for car affordability
A widely used guideline is 20/4/10: put 20% down, finance for no more than 4 years, and keep total car costs (payment, insurance, fuel) under 10% of gross income. It is a guide, not a rule, but it keeps you out of negative equity.
Key terms
- APR
- The yearly cost of the loan including interest and certain fees.
- Amount financed
- The total you borrow after down payment, trade-in and rebates.
- Negative equity
- Owing more on a car than its market value; also called being upside down.
- Trade-in credit
- The value a dealer gives for your old car, which reduces the price you finance.
- Doc fee
- A dealer charge for preparing paperwork; limits and amounts vary by state.
Frequently asked questions
How is a car loan payment calculated?
Take the amount financed, multiply by the monthly interest rate, and divide by 1 minus (1 + monthly rate) raised to the negative number of months. The amount financed is the price plus sales tax and fees, minus your down payment, trade-in and rebates.
How much car can I afford?
A common guide is to keep total car costs under 10% of gross monthly income and to finance for no more than 48 to 60 months. Use the calculator to work backward: adjust the price until the monthly payment fits your budget.
Is it better to take a longer loan for a lower payment?
It lowers the payment but raises total interest and the chance of owing more than the car is worth. On a $33,050 loan at 7%, 84 months costs $2,634 more in interest than 60 months.
Does a down payment lower my monthly payment?
Yes. Every dollar down reduces the amount financed and the interest. A 20% down payment on a new car also helps you avoid negative equity.
Is sales tax included in the loan?
It can be. Many buyers roll sales tax and fees into the loan, which raises the amount financed. Uncheck the roll-in option to see the cash you need at signing instead.
What credit score do I need for a good auto loan rate?
Borrowers with scores above about 720 usually receive the lowest rates. Scores below 620 often face much higher APRs. Check your credit report before you shop and compare offers from a credit union, your bank and the dealer.
Can I pay off a car loan early?
Most auto loans allow it without a penalty, but check your contract for prepayment fees. Use the extra payment box to see the interest you would save.
How do I calculate a car payment without a calculator?
Divide the amount financed by the number of months for a rough principal estimate, then add interest: multiply the loan amount by APR and the years, divide by the months. This is only approximate because interest is charged on a declining balance; the calculator above is exact.
Sources and further reading
- Edmunds: average amount financed and APR, Q1 2026
- GM Authority: Edmunds Q2 2026 loan term and APR data
Related calculators
Related guides
Figures in the examples are illustrative and use the inputs shown. Market rates and program rules change; confirm current terms with your lender or the linked official sources before making a decision.
📚 Related Finance Topics
Understanding loan payments and interest is foundational to smart borrowing. Whether you are financing a home, car, or personal expense, knowing your true cost helps you negotiate better rates and pay off debt faster. Always compare the APR -- not just the interest rate -- to understand the total cost.
See All Loan Calculators Tools →🛠️ You Might Also Need
Built by Abdul Rahman · Last reviewed: · Report an error
Disclaimer: This calculator provides estimates for educational purposes only and is not financial, tax, or legal advice. Results depend on the figures you enter and on simplified assumptions; actual rates, taxes, and outcomes will differ. Consult a qualified professional before making financial decisions.