Auto Loan Calculator

Calculate your exact monthly car payment including trade-in value, sales tax, and down payment. See total interest and a full amortization schedule.

Vehicle & Loan Details

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Most states subtract trade-in value before calculating tax
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How to Use the Auto Loan Calculator

Enter the vehicle price, your down payment, any trade-in value, sales tax rate, fees, interest rate, and loan term. The calculator factors in how trade-in value reduces your taxable amount in most states, then computes your exact monthly payment and total cost.

New vs. Used Car Loan Rates

Used car loans typically carry higher interest rates than new car loans — often 2-4 percentage points higher — because lenders view used vehicles as higher risk due to faster depreciation and uncertain condition history.

5 Steps to a Better Car Loan

  1. 1
    Check your credit score before shopping — it's the biggest factor in your rate
  2. 2
    Get pre-approved by your bank or credit union before visiting dealers
  3. 3
    Negotiate the vehicle price separately from the financing terms
  4. 4
    Compare the dealer's financing offer against your pre-approval — take the lower APR
  5. 5
    Avoid extending the loan term just to lower payments — it increases total interest paid

Worked Example: Loan Term vs. Total Interest

Imagine financing $30,000 at 7% APR. The payment and total interest change a lot with the term:

  • 48 months: about $718.39 per month, with about $4,483 in total interest
  • 60 months: about $594.04 per month, with about $5,642 in total interest
  • 72 months: about $511.47 per month, with about $6,826 in total interest

Stretching from 48 to 72 months saves about $207 per month but costs about $2,343 more in interest, and you stay in debt longer while the car loses value.

Budgeting Beyond the Monthly Payment

The loan payment is only part of the cost of a car. Add insurance, fuel, maintenance, registration, and sales tax. A popular guideline is the 20/4/10 rule: put at least 20% down, finance for no more than 4 years, and keep total car costs under about 10% of your gross income. A larger down payment also lowers the chance of owing more than the car is worth (negative equity) if you need to sell or the car is totaled. Get pre-approved by a bank or credit union first so you can compare the dealer's offer against a real number.

Prepared by the ProCalcTools editorial team and last reviewed in October 2026. This page is for general information and is not financial, tax, or medical advice.

Frequently Asked Questions

New car loans for borrowers with good credit average approximately 6.5-7.5% APR in 2026. Used car loans average 9-11% APR. Rates vary based on credit score, loan term, and lender — always compare multiple offers.
A common rule is 20% down for a new car and 10% for a used car. A larger down payment lowers your monthly payment and total interest, and helps avoid being "underwater" (owing more than the car's value) early in the loan term.
In most states, yes — trade-in value is subtracted from the purchase price before sales tax is calculated. A few states (like California in certain cases) tax the full price regardless. Check your state's DMV rules.