Use this free car loan calculator to find your monthly auto payment and total cost of ownership. Enter the vehicle price, down payment, trade-in value, sales tax rate, interest rate, and loan term to see exactly what you’ll pay — and how much of it goes to interest.

How to Use the Car Loan Calculator

Start with the vehicle price — the selling price before any discounts, trade-in, or financing. Enter your down payment in dollars (the amount you’ll pay upfront in cash). If you’re trading in a vehicle, enter its trade-in value — this reduces the amount you need to finance and lowers your payment.

Enter your state’s sales tax rate. In most states, sales tax is applied to the purchase price before your trade-in is subtracted, which means you’ll still owe tax on the full price. Some states apply tax only to the difference after trade-in — the calculator uses the most common method. Sales tax can add thousands of dollars to the total amount financed.

Enter the interest rate (APR) you’ve been offered. Your credit score is the biggest factor in your rate: excellent credit (720+) might qualify for 5–6% in 2026, while poor credit (below 580) could result in rates of 15–25% or higher. Even a 5% rate difference on a $35,000 loan over 60 months changes your monthly payment by about $85 and adds nearly $5,000 in total interest.

Choose your loan term. Common options are 36, 48, 60, 72, and 84 months. Longer terms lower your monthly payment but dramatically increase total interest paid. A 72-month loan on a $30,000 vehicle at 8% costs about $4,800 more in interest than a 48-month loan, while only saving $130/month.

Understanding Your Car Loan Results

The most important number isn’t your monthly payment — it’s the total amount paid. Dealerships often focus on monthly payment because it’s easier to stretch a buyer into a more expensive car by extending the term. A $700/month payment on a 48-month loan costs $33,600 total; the same payment on a 72-month loan costs $50,400. Always evaluate the total cost alongside the monthly payment.

The amortization table shows how each payment is split between principal and interest. In the first few months, most of your payment goes to interest. As the loan ages, more goes to principal. This is why paying extra toward principal in the early months is especially effective at reducing total interest and shortening the loan term.

Frequently Asked Questions

What is a good interest rate on a car loan in 2026?

Auto loan rates in 2026 vary significantly by credit score. With excellent credit (720+), you might see rates of 5–7% for a new car. Good credit (660–719) typically yields 7–10%. Fair credit (580–659) often results in 12–18%. Subprime borrowers (below 580) may face rates of 20%+ from dealership financing. Getting pre-approved from a bank or credit union before visiting a dealership usually results in a better rate.

Should I put more money down on a car?

A larger down payment reduces the amount financed, lowers your monthly payment, and reduces total interest paid. It also helps you avoid being “upside down” on the loan (owing more than the car is worth), which is common when financing with little down, since cars typically depreciate 15–25% in the first year. Aim for at least 10–20% down on a new car.

Is a 72-month car loan a bad idea?

Generally, yes — for most buyers. While a 72-month term lowers your monthly payment, you’ll pay significantly more interest over the life of the loan, and cars depreciate faster than a long loan pays down. You’re likely to be “underwater” (owing more than the car’s value) for several years. A 48-or 60-month term is typically a healthier balance between payment size and total cost.

Should I finance through the dealership or get my own loan?

Always get pre-approved from your bank or a credit union before visiting the dealership. This gives you a benchmark rate to compare against dealer financing, and puts you in a stronger negotiating position. Dealer financing (through the manufacturer’s captive lender) can sometimes offer promotional rates (0% APR deals), but always compare the total cost of any promotional deal vs. a standard loan.

Related Resources