How to use this auto loan calculator
- Pick what to solve for. “Total price” gives your monthly payment for a specific car. “Monthly payment” shows the most expensive car a monthly budget can cover once tax and fees are included.
- Enter the price, loan term and interest rate. Our default of 6.35% is the average new-car loan rate for Q2 2026, according to Experian. For the most accurate result, use the rate from a lender preapproval or the dealer’s written offer.
- Add your down payment and trade-in. If you still owe money on the car you are trading in, enter the payoff under “Rebates & trade-in payoff.”
- Set your sales tax rate and fees, then choose whether to finance them or pay them at signing. The results compare every term from 36 to 84 months, and you can copy a link to save your numbers.
How your car loan amount and payment are calculated
The amount you finance is not just the sticker price. Start with the negotiated price, subtract what lowers it, and add what you roll in:
P = price − rebates − down payment − (trade-in value − amount owed) + sales tax + fees
- tax
- sales tax rate × (price − trade-in value) in states with a trade-in credit, or × price in states without one
- fees
- title, registration, documentation and other fees you choose to finance
The monthly payment then follows the standard amortization formula:
M = P × r(1 + r)^n / ((1 + r)^n − 1)
- M
- monthly payment
- P
- amount financed
- r
- monthly interest rate = annual rate ÷ 12
- n
- number of monthly payments
Worked example
A $35,000 car taxed at 6% carries $2,100 of sales tax. Add $1,000 in fees and subtract $5,000 down, and you finance P = $33,100. At 6.35%, r = 0.0052917 and n = 60, so (1 + r)n = 1.37254 and M = $33,100 × 0.0052917 × 1.37254 ÷ (1.37254 − 1) = $645.32 a month. Over 60 months you pay $38,719, of which $5,619 is interest.
Car payments by loan amount and term
Monthly payment by amount financed at a 6.35% interest rate (enter your own rate in the calculator above):
| Amount financed | 36 mo | 48 mo | 60 mo | 72 mo | 84 mo |
|---|---|---|---|---|---|
| $10,000 | $305.81 | $236.46 | $194.96 | $167.39 | $147.77 |
| $15,000 | $458.71 | $354.69 | $292.44 | $251.08 | $221.65 |
| $20,000 | $611.62 | $472.92 | $389.92 | $334.77 | $295.54 |
| $25,000 | $764.52 | $591.15 | $487.40 | $418.47 | $369.42 |
| $30,000 | $917.42 | $709.37 | $584.88 | $502.16 | $443.31 |
| $35,000 | $1,070.33 | $827.60 | $682.36 | $585.85 | $517.19 |
| $40,000 | $1,223.23 | $945.83 | $779.84 | $669.54 | $591.08 |
| $50,000 | $1,529.04 | $1,182.29 | $974.80 | $836.93 | $738.85 |
| $60,000 | $1,834.85 | $1,418.75 | $1,169.76 | $1,004.32 | $886.62 |
Why longer car loans cost more
A longer term spreads the balance over more payments, which lowers the monthly bill but gives interest more time to build up. The average new-car loan ran 69.5 months in Q2 2026, according to Experian. Here is the $33,100 loan from the example on each term, all at 6.35%:
| Term | Monthly payment | Total interest |
|---|---|---|
| 36 months | $1,012.22 | $3,340 |
| 48 months | $782.68 | $4,468 |
| 60 months | $645.32 | $5,619 |
| 72 months | $554.05 | $6,791 |
| 84 months | $489.12 | $7,986 |
Going from 60 to 84 months saves $156.20 a month but costs $2,367 more in interest, and that assumes the same rate; if a lender charges more for the longer term, the gap grows. Long loans carry other risks too: in a 2017 report the CFPB found that loans of six years or longer had default rates above 8%, compared with about 4% for shorter loans. The CFPB also notes that longer loans are more likely to leave you owing more than the car is worth.
The 20/4/10 rule for buying a car
The 20/4/10 rule is a popular budgeting guideline, not a lender requirement: put at least 20% down, finance for no more than 4 years, and keep total car costs (the payment plus insurance, and in some versions fuel and maintenance) under 10% of your gross income.
Applied to the example car, 20% down is $7,000, and a 48-month loan at 6.35% with the same tax and fees costs $735.39 a month. Keeping just that payment under 10% of income would take a gross income of about $88,246 a year, before insurance. For a car at the August 2026 average new-vehicle transaction price of $50,089 (Cox Automotive / Kelley Blue Book), 20% down would be $10,018. If your numbers fall short, consider a less expensive or used car rather than a longer loan.
Negative equity: owing more than your trade-in is worth
If your current car loan balance is higher than the car’s trade-in value, you have negative equity (you are “upside down”). A dealer may offer to roll that balance into your new loan, but the CFPB warns this makes the new loan more expensive. For example, trading in a car worth $10,000 with $13,000 still owed adds $3,000 to the example loan, raising the payment by $58.49 and costing $509 in extra interest over 60 months. Paying the old loan down or waiting before you trade avoids that cost.
How a trade-in lowers your sales tax
Most states charge sales tax only on the difference between the vehicle price and your trade-in allowance. On the example car, a $10,000 trade-in cuts the tax from $2,100 to $1,500, a $600 saving. In Washington the credit uses the full trade-in value even when the dealer pays off a loan on the trade-in, as the state Department of Revenue illustrates; this calculator works the same way.
Some states give no trade-in credit. California, for example, taxes the full selling price and counts a manufacturer rebate that the buyer applies to the purchase as part of the taxable price. Like California, this calculator applies sales tax to the price before rebates; if your state taxes the price after rebates, your actual tax will be a little lower. If your state gives no trade-in credit, uncheck “Tax is charged on price minus trade-in.”
New vs. used car loan rates
Used-car loans usually cost more. In CFPB data from six lenders on loans made from 2018 through 2022, average APRs on used-vehicle loans were more than 3 percentage points higher than on new-vehicle loans in every month. In Q2 2026, average rates were 6.35% for new cars and 11.19% for used cars, according to Experian. On the example loan, a rate 3 points higher (9.35%) raises the payment to $692.74 and adds $2,845 in interest. The Federal Reserve also tracks the average new-car loan rate at commercial banks in its G.19 consumer credit release.
Average car loan rates by credit score
Your credit score has a big effect on the rate you are offered. Average APRs by credit tier for Q2 2026, with the payment on the example’s $33,100 loan over 60 months at each new-car rate:
| Credit tier (score) | New car | Used car | Payment on $33,100 |
|---|---|---|---|
| Super prime (781–850) | 4.41% | 6.29% | $615.73 |
| Prime (661–780) | 6.15% | 8.81% | $642.23 |
| Near prime (601–660) | 9.71% | 13.93% | $698.56 |
| Subprime (501–600) | 13.52% | 19.10% | $761.97 |
| Deep subprime (300–500) | 16.11% | 21.62% | $806.86 |
Rates: Experian, which groups borrowers by VantageScore 4.0 ranges. Payments computed by this calculator.
Dealer financing vs. a bank or credit union loan
With dealer-arranged financing, the dealer sends your application to lenders, and a lender quotes the dealer a “buy rate.” The rate you are offered can include extra interest that compensates the dealer. Borrowing directly from a bank or credit union avoids that markup, which the CFPB says tends to make it the cheaper option.
- Get preapproved first. A preapproval gives you a rate, term and maximum amount to compare with the dealer’s offer.
- Negotiate the rate, not just the price. The CFPB notes that dealer financing rates are negotiable.
- Compare total cost. Look at the APR, the term and the total interest, not only the monthly payment. Our loan calculator and interest rate calculator help check any offer.
Frequently asked questions
How do you calculate a car payment?
First find the amount financed: the vehicle price minus rebates, your down payment and trade-in equity, plus sales tax and fees if you roll them in. Then apply the loan formula M = P × r(1 + r)^n ÷ [(1 + r)^n − 1], where r is the annual rate ÷ 12 and n is the number of months. A $33,100 loan at 6.35% for 60 months works out to $645.32 a month.
What is the monthly payment on a $30,000 car loan?
At 6.35%, a $30,000 auto loan costs $709.37 a month over 48 months, $584.88 over 60 months and $502.16 over 72 months. Total interest is $5,093 on the 60-month loan. Your actual rate depends on factors such as your credit, the loan term and whether the car is new or used.
Should I roll sales tax and fees into my car loan?
Paying them upfront is cheaper if you have the cash, because financing tax and fees means paying interest on them. In our example, paying the $3,100 of tax and fees upfront instead of financing it lowers the payment from $645.32 to $584.88 and saves $526 in interest. Uncheck “Include taxes and fees in the loan” in the calculator to compare.
Is a 72- or 84-month car loan a bad idea?
It usually costs more. Stretching the example loan from 60 to 84 months lowers the payment by $156.20 but adds $2,367 in interest, even at the same rate. The CFPB notes that longer loans are more likely to leave you owing more than the car is worth. If you need a long term to afford the payment, consider a less expensive car or a bigger down payment.
Does a trade-in lower the sales tax on a car?
In most states, yes: sales tax is charged on the price minus the trade-in value, so a $10,000 trade-in saves $600 at a 6% tax rate. A few states, including California, tax the full price with no trade-in credit. In Washington, the credit is based on the full trade-in value even if the dealer pays off a loan on your old car.
What happens if I owe more on my car than it’s worth?
That gap is negative equity. If you trade the car in, the dealer pays off your old loan and may offer to add the shortfall to the new one. Rolling $3,000 of negative equity into the example loan raises the payment by $58.49 and costs $509 in extra interest. Paying it down first, or keeping the car longer, avoids that.
Is 0% APR financing better than a cash rebate?
Compare the total cost of each. For the example car, 0% financing over 60 months costs $38,100 in all. Taking a $3,000 rebate and financing at 6.35% instead costs $40,210, including $5,110 of interest, so 0% financing saves $2,110. A larger rebate or a lower outside rate makes the rebate more attractive.