Calculate your monthly car payment, total interest cost, and see a complete amortization schedule. Factor in down payment, trade-in value, and sales tax for an accurate picture of your auto financing.
Enter your vehicle details to see your monthly payment and total cost.
In-Depth Guide
Navigate car buying in 2026 with confidence. Understand auto loan rates, optimal loan terms, negotiation tactics, and how to calculate your true monthly cost.
Read Full GuideA car is often the second-largest purchase most people make. Understanding your auto loan terms and total cost is essential to making a financially sound decision. Our calculator helps you see the true cost of vehicle financing beyond just the monthly payment.
Auto loans use simple interest calculated on the remaining principal balance. Each month, you pay interest on what you still owe, plus a portion of the principal. Early in the loan, more of each payment goes toward interest. As you pay down the balance, more goes toward principal. This is why making extra payments early saves the most money.
New cars typically qualify for lower interest rates (sometimes 0% promotional rates) but depreciate 20-30% in the first year alone. Used cars cost less upfront but usually carry higher interest rates and may have shorter available loan terms. A 2-3 year old certified pre-owned vehicle often represents the best value — the steepest depreciation has already occurred, but the car still has modern features and remaining warranty.
Your monthly car payment is calculated using the standard amortization formula. It takes the total loan amount (vehicle price + sales tax - down payment - trade-in value), the annual interest rate (converted to a monthly rate), and the loan term in months. For example, a $30,000 loan at 6.5% APR for 60 months results in approximately $587 per month.
As of 2026, good auto loan rates for new cars are typically 5.0-7.0% for borrowers with excellent credit (740+). Used car rates are generally 1-2% higher. Your actual rate depends on your credit score, loan term, vehicle age, and lender. Credit unions often offer rates 0.5-1% lower than banks or dealer financing.
Shorter loan terms (36-48 months) have higher monthly payments but save you significantly on total interest. A $30,000 loan at 6.5% costs $7,197 in interest over 5 years, but only $4,201 over 3 years — saving you nearly $3,000. Choose the shortest term you can comfortably afford to minimize total cost.
Financial experts recommend at least 20% down on a new car and 10% on a used car to avoid being "underwater" (owing more than the car is worth). A larger down payment reduces your loan amount, monthly payment, total interest, and the risk of negative equity. If possible, combine a down payment with a trade-in to minimize your financing needs.
In most US states, sales tax applies to the full purchase price of the vehicle (some states subtract the trade-in value before calculating tax). Sales tax rates vary by state, typically ranging from 0% (Oregon, Montana) to over 10% (some California counties). Our calculator applies sales tax to the vehicle price and adds it to your loan amount.
It depends. Dealers sometimes offer promotional 0% or low-rate financing on new vehicles, which can be the best deal. However, for most purchases, getting pre-approved through your bank or credit union before visiting the dealer gives you negotiating power and often results in a better rate. Always compare at least 3 financing offers.
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