Auto Loan Calculator
Enter your vehicle price, down payment, trade-in, and interest rate to calculate your exact monthly car payment.
Results · 60-Month Loan
Monthly Payment
$650.23
Amount Financed
$32,450
Total Interest
$6,564
Sales Tax
$2,450
Total Vehicle Cost
$37,450
How to Calculate Your Car Payment
Your monthly auto loan payment depends on four variables: the amount financed, the interest rate, and the loan term. The amount financed is the vehicle price plus sales tax, minus your down payment and any trade-in credit. For example, a $35,000 car with a $5,000 down payment, no trade-in, and 7% sales tax would have a taxable amount of $35,000 and sales tax of $2,450, leaving an amount financed of $32,450. At 7.5% APR over 60 months, that works out to $649/month.
Loan term has a major effect on your monthly payment but a hidden cost: longer terms mean lower payments but far more total interest. A $30,000 loan at 7% costs $1,981 in interest over 36 months but $4,487 over 72 months — more than double — even though the rate is the same. Most financial advisors recommend keeping auto loans to 48 to 60 months to avoid being “underwater” (owing more than the car is worth), since vehicles typically lose 15–20% of their value in the first year.
Your interest rate is determined primarily by your credit score and the loan term. As of 2026, borrowers with excellent credit (720+) typically see rates of 5–7% for new cars and 6–9% for used. Rates above 10% are common for subprime borrowers. Even a 1% rate difference on a $30,000 loan over 60 months saves about $800 in total interest — worth shopping around.
Sales tax varies widely by state: from 0% in states like Montana and Oregon to over 10% in some Tennessee counties. In most states, your trade-in value reduces the taxable base before sales tax is applied — a key benefit of trading in rather than selling privately if you're in a higher-tax state. For a $35,000 car with a $10,000 trade-in in a 7% tax state, you pay tax only on $25,000, saving $700 in taxes compared to selling privately.
Frequently Asked Questions
What is a good interest rate for an auto loan in 2026?
For new vehicles, borrowers with excellent credit (720+ FICO) typically qualify for 5–7% APR in 2026. Good credit (680–719) sees roughly 7–9%. For used vehicles, add 1–2% to those figures. Rates from credit unions and online lenders are often 0.5–1.5% lower than dealership financing. Always get pre-approved before visiting a dealership so you can negotiate using your own rate as a benchmark.
How much car can I afford?
A common rule is to keep your total monthly vehicle expenses (payment + insurance + fuel) under 15–20% of your take-home pay. For a $5,000/month take-home, that's $750–1,000. Another rule: the vehicle price shouldn't exceed 35% of your annual gross income. If you earn $70,000, cap your car budget at $24,500. Both rules should be met, not just one.
Should I put more money down on a car loan?
Yes, in most cases. A larger down payment reduces the amount financed, which lowers your monthly payment and total interest. More importantly, it reduces the risk of negative equity — when you owe more than the car is worth. A new vehicle can lose 20–25% of its value in the first year, so starting with at least 20% down helps you stay above water. If you can't put 20% down, a shorter loan term (36–48 months) reduces negative equity risk.
Is it better to get financing from a dealer or a bank?
Pre-approve with your bank or credit union before going to the dealer. Banks and credit unions typically offer lower rates than dealer financing. Use your pre-approval as a baseline: if the dealer can beat it, great; if not, use your own financing. Be cautious of 0% dealer offers — they often require excellent credit, apply only to select models, and may come with higher purchase prices. Always compare the total cost of each financing scenario, not just the monthly payment.