A walkthrough, end to end.
- 1
Enter the vehicle price, sales tax %, fees, down payment, trade-in value, loan term and APR.
- 2
The calculator adds tax + fees, subtracts down payment + trade-in, and amortizes the resulting loan to give your monthly car payment.
- 3
See total interest paid and the financed amount — the actual amount you're borrowing after all adjustments.
Auto financing math
Loan amount = (Price + Sales Tax + Fees) − (Down Payment + Trade-in). Monthly payment uses the standard amortization PMT formula on that loan amount. Sales tax is applied to the price before financing in most US states.
What you can do with this.
New car loan calculator
New-car APRs in 2026 average 6–8% for prime borrowers, with terms of 60–84 months. Longer terms shrink the payment but add substantial interest — a 7-year loan vs. 5-year on $40K can cost $4K+ extra.
Used car loan calculator
Used-car APRs run 1–3% higher than new. Lenders often cap term length at 72 months for cars over 5 years old. Down payments of 20%+ commonly required for older or higher-mileage vehicles.
With trade-in value
Subtract the dealer's trade-in offer from the loan amount before financing. If you owe more than the trade-in is worth (negative equity), the difference rolls into the new loan — a common but expensive pattern.
Lease vs. finance
Lease payments are typically 20–30% lower than finance payments on the same car, but you don't own the car at the end. Use this calculator for the financed option; compare side-by-side with a lease quote.
Down payment impact
Each $1,000 of additional down payment reduces monthly payment by ~$15–20 on a 60-month loan. More importantly, it reduces total interest and lowers the chance of going underwater on the loan.
Sales tax handling
In most US states, sales tax is computed on the full purchase price (not net of trade-in) and rolled into the loan. A few states give a tax credit for trade-in value — check your state's rules.
Auto loan calculator 2026 — what's current
Average new-car APR sits at ~7.1% for 60-month loans (Bankrate, Q1 2026). Credit unions consistently undercut dealer financing by 1–2% for prime borrowers — check before signing at the dealer.
Frequently asked.
Often the most expensive option. Get pre-approved at a credit union or online lender first; use that quote as leverage at the dealer. Most dealers will match or beat to make the sale.
Aim for 20% on a new car, 10%+ on used. Less than 10% commonly leaves you underwater (loan balance > car value) for the first 1–2 years — risky if the car is totaled or you need to sell.
Prime borrowers (FICO 720+): 5–7% in 2026. Near-prime: 8–12%. Subprime: 15%+. Check your state's average on Bankrate or Edmunds for context.
Almost always the rebate if your alternative APR (e.g. credit union) is competitive. Use this calculator to compute total cost both ways and compare directly.
No. Calculations run entirely in your browser.