Auto Loan Calculator
Calculate monthly auto loan payments, total interest, and total cost of your new or used car loan. Factor in trade-in value, down payment, and sales tax for accurate 2026 estimates.
Quick Take
This calculator gives you real-time estimates based on standard financial formulas. Modify any input and results update instantly — no calculate button needed.
Financial Information Only — Not Advice
This tool uses standard, publicly documented formulas to estimate outcomes. It is for educational use and is not financial, tax, or legal advice. Interest rates, fees, and tax figures change over time and are set by lenders, dealers, and government agencies — not by this site. Always confirm current rates and terms with your lender, dealer, or state agency, and consult a qualified professional before making a decision.
Primary Result
Monthly Payment
What This Calculator Does
Calculate monthly auto loan payments, total interest, and total cost of your new or used car loan. Factor in trade-in value, down payment, and sales tax for accurate 2026 estimates.
How the Calculation Works
Who Should Use This Tool
This calculator is designed for anyone looking to understand the financial implications of auto loan decisions. Whether you're a first-time buyer, comparing options, or planning for the future, these estimates help you make informed choices.
Important Considerations
Remember that actual terms, rates, and costs will vary by lender, your credit score, and current market conditions. These calculators provide educational estimates only and do not constitute professional financial advice. Always compare multiple offers and consult a financial professional before making decisions.
Car Loan Calculator: A 2026 Buyer's Guide
A car loan is the second-largest monthly payment most Americans carry after housing, and the difference between a smart loan and a sloppy one can cost you thousands in interest and years of being upside down on the vehicle. This 2026 car loan calculator breaks the math into monthly payment, total interest, and total cost — with sales tax, trade-in, and down payment baked in — so you can compare loan offers side by side before you walk into the dealership. It runs in your browser, with no signup, no email, and no paywall.
How an auto loan payment is built
A monthly car payment has two parts: principal (the actual amount borrowed) and interest (the cost of borrowing). The standard amortization formula spreads the principal across the loan term so the payment stays level, with interest calculated each month on the remaining balance. Early in the loan, most of the payment is interest; by the final year, most of it is principal. The same formula drives mortgages and student loans — only the inputs change. Sales tax, trade-in value, and down payment all flow into the principal before the formula runs. In states that let you roll tax into the loan (most do), $2,000 of sales tax on a $30,000 car becomes a $32,000 loan — and the interest on that tax adds $200-400 over a typical 60-month term.
What counts as a good APR
APR is the yearly cost of borrowing including fees, and it is quoted by the lender after a credit check — not a fixed number you can look up. Prime new-car borrowers (720+ FICO) historically receive the lowest APRs, while subprime borrowers pay several points more, and used-car rates typically sit higher than new-car rates (per Experian's State of the Automotive Finance Market reports). Credit union rates often beat bank or captive lender rates. Loan term matters too: shorter terms usually carry lower APRs. Before signing, get pre-approved at a credit union and one bank so you have a real baseline to compare against dealer financing — dealers sometimes beat the rate, but only when they have something to beat. The exact current averages change with Federal Reserve policy, so verify live figures with your lender.
Down payment, trade-in, and being upside down
A new car loses 20-30% of its value in the first year. Put down 5% on a 60-month loan and you are upside down — owing more than the car is worth — for the first 18-24 months. A 20% down payment plus a trade-in keeps you above water from day one and shaves thousands off total interest. On a $35,000 car at 6.9% APR for 60 months, going from 5% down to 20% down drops the monthly payment from about $620 to $530 and saves $1,500-2,000 in interest. Use this calculator to model your trade-in value as well — every dollar of trade-in reduces the principal exactly like a down payment.
Loan term: 36, 60, 72, or 84 months
Longer terms lower the monthly payment but raise total interest and increase the chance you owe more than the car is worth when you sell or trade. A $30,000 loan at 6.9% APR costs $591 per month at 60 months (total interest $5,460) or $510 at 72 months (total interest $6,720). That extra year of payments buys a $81 lower monthly bill but costs $1,260 more in interest. Most financial planners recommend 60 months or less on used cars and 72 months max on new — beyond that, you risk negative equity that follows you into the next loan.
When to refinance or pay off early
If rates have dropped, your credit has improved, or you initially took dealer financing without shopping, refinancing can cut your APR by 1-3 points. Our auto refinance calculator shows the break-even month after refinance fees. If you have spare cash, even $50-100 extra per month can shave months off the loan and save hundreds in interest — the early payoff calculator models the exact savings. Pair this car loan calculator with both to see the full lifecycle of your auto debt.
Last updated: August 2026. This guide is for educational purposes only and does not constitute financial advice. Actual loan terms vary by lender, credit profile, and market conditions.
How the math works
Monthly payment uses the standard amortization (PMT) formula M = P·[r(1+r)^n]/[(1+r)^n − 1], where P = principal, r = APR/12/100, n = months. APR is set by your lender from your credit score, term, and market rates — not a fixed number.
How to use this calculator
- Enter the vehicle price (use the manufacturer's MSRP or a real listing, not a rounded guess).
- Add your down payment and any trade-in value; both reduce the principal you finance.
- Enter the sales-tax rate for your state (see our state tax table) and choose whether to roll tax into the loan.
- Type the APR your lender actually offered — rates change, so confirm the live number with the bank, credit union, or dealer.
- Pick a loan term (36–84 months) and read the total interest and total cost, not just the monthly payment.
Sources & authoritative references
The definitions, formulas, and benchmarks behind this tool are drawn from the public, primary sources listed below. We do not cite figures we cannot verify.
- Experian — State of the Automotive Finance Market — Experian
- CFPB — Auto Loans — Consumer Financial Protection Bureau
- FTC — Buying a Used Car — Federal Trade Commission
Frequently Asked Questions
How is my auto loan monthly payment calculated?+
Should I include sales tax in my auto loan?+
What is a good auto loan rate in 2026?+
How does a trade-in affect my loan?+
Why is my total cost higher than the car price?+
Is this car loan calculator free to use?+
How much car can I afford on a $50,000 salary?+
Should I choose a 60-month or 72-month auto loan?+
Does putting 20% down really matter?+
Can I use this calculator for a used car loan?+
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Related Guides
How to Lower Your Monthly Car Payment Without Getting Ripped Off
Refinancing to a lower rate is the cleanest win, but extending your term, trading down, or renegotiating the purchase price all cut the payment — some just trade lower payments for higher total cost.
36 vs 60 vs 72 Month Car Loans: The Real Payment-vs-Interest Trade
A 36-month loan saves the most interest but costs ~60% more a month than 72 months. For most buyers the sweet spot is 48–60 months.
How Simple-Interest Auto Loans and Amortization Really Work
Most car loans are "simple interest" loans, which sounds reassuring but hides a quirk that catches borrowers off guard: the interest you owe is recalculated every single day on whatever balance remains. Early payments barely touch the principal, and that math decides whether paying extra actually saves you money.