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Auto Loan Calculator
Calculate your monthly car payment, total interest, and full loan cost including trade-in and sales tax.
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Monthly Payment
Total Loan Amount
Total Interest
Total Cost
Calculated in your browser. We never see your numbers.
How to Use This Calculator
Enter the vehicle price and any down payment or trade-in value you have. If your state charges sales tax on vehicle purchases, enter that percentage — it will be rolled into the loan amount. Enter the annual interest rate from your lender (or check current offers at your bank or credit union), select the loan term in months, and see your monthly payment update instantly. The results show your monthly payment, total loan amount financed, total interest over the life of the loan, and the full cost of the vehicle including all financing charges.
Auto Loan Payment Formula
The monthly auto loan payment uses the standard amortization formula: M = P × r(1+r)^n / ((1+r)^n − 1), where M is the monthly payment, P is the loan principal (vehicle price minus down payment minus trade-in, plus sales tax), r is the monthly interest rate (annual rate ÷ 12), and n is the total number of payments (loan term in months). For a $27,000 loan at 5.9% for 60 months: r = 0.059/12 ≈ 0.004917, M ≈ $520.73 per month. For 0% financing, the payment simplifies to principal ÷ n.
Example Calculation
Suppose you're buying a $30,000 car with a $3,000 down payment, no trade-in, and no sales tax. Your loan amount is $27,000. At 5.9% interest for 60 months, your monthly payment is approximately $520.73. Over 5 years you'll pay $31,243.80 total — meaning $4,243.80 in interest on top of your $27,000 loan. If you add a $5,000 trade-in, the loan drops to $22,000 and your monthly payment falls to about $424.51, saving over $1,800 in interest.
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Frequently Asked Questions
What's the average auto loan rate in 2026?
As of 2026, average auto loan rates typically range from 5% to 9% for new vehicles with good credit, and 8% to 14% for used vehicles. Your specific rate depends on your credit score, loan term, the age of the vehicle, and your lender. Checking pre-approval offers from banks, credit unions, and dealership financing helps you find the best rate before signing.
Should I put more money down on my car?
A larger down payment reduces your loan amount, lowers your monthly payment, and reduces total interest paid over the loan term. It also helps avoid being 'underwater' on your loan — owing more than the car is worth. As a general guideline, aim for at least 10–20% down on a new car and 10% on a used car. The more you put down, the better your financial position.
Is a 60 or 72-month auto loan better?
A 60-month loan has higher monthly payments but you pay significantly less interest overall and own the car sooner. A 72-month loan reduces monthly payments, but you pay more interest and the car may depreciate faster than you build equity. If you can afford the 60-month payment, it's typically the better financial choice. Use this calculator to compare both scenarios side by side.
Can I include sales tax in my auto loan?
Yes, most auto loans allow you to roll sales tax into the financed amount rather than paying it upfront. This is often done automatically by the dealer. While it lowers the upfront cash needed, it means you pay interest on the tax amount over the life of the loan, increasing total cost. This calculator accounts for sales tax in the loan amount so you can see the full impact.
How does trade-in value reduce my loan?
Your trade-in value acts like a down payment — it directly reduces the amount you need to borrow. For example, if you're buying a $30,000 car and your trade-in is worth $5,000, you only need to finance $25,000 (minus any additional down payment). Getting your car appraised at multiple dealerships or using services like CarMax or KBB Instant Cash Offer helps you maximize your trade-in value.
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