Auto Loan Calculator
Estimate your monthly car payment and total interest, and see how rate, term, down payment, trade-in and sales tax change the numbers.
October 20, 2026
An auto loan calculator shows what a car really costs, both each month and over the life of the loan. It can help you look past the sticker price and understand what your monthly payment will be. It also shows the total cost of the car over time.
Auto Loan Calculator
Estimate your monthly payments and total interest
Last Updated On April 30, 2026
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Shopping for an auto loan?
We have you covered. See which lenders get top marks.
Use this calculator to estimate your payments, plan your budget, and help find a loan that fits your financial situation. Once you have an estimate, you can compare car loan offers from different lenders.
Total cost matters more as loans grow. In Q3 2026, buyers financed a record $44,664 for new cars, and 25.5% of new-car loans ran 84 months or longer (Edmunds Q3 2026 report).
Key Insights
- Your payment depends on four inputs: price after down payment and trade-in, APR, loan term and sales tax.
- BestMoney's calculation: $30,000 at 7% APR costs about $1,184 more interest over 72 months than over 60 months.
- Average APRs were 6.35% for new cars and 11.19% for used cars in Q2 2026 (Experian). Your credit tier moves them.
- More down means a smaller loan and less interest (CFPB). Q3 2026 average down payments: $5,554 new, $3,865 used (Edmunds).
- Auto loan calculator results are estimates. Dealer fees, add-ons and state tax rules can change your final number.
How Do You Use This Auto Loan Calculator?
You enter six numbers about the car and loan, and the auto loan calculator returns your monthly payment, loan amount and total interest. To get an accurate estimate, you'll need a few key pieces of information.
1. Price of Vehicle: Enter the car's sticker price (MSRP) or, even better, the negotiated price you plan to pay. This is the starting point for all the calculations.
2. Down Payment: This is the amount of cash you will pay up front. A larger down payment reduces your loan amount, which in turn lowers your monthly payment and the total interest you'll pay (CFPB down payment guide). In Q3 2026, the average down payment was $5,554 for new cars and $3,865 for used cars (Edmunds).
3. Trade-In Value & Amount Owed: If you are trading in your current vehicle, enter its value in the Trade-In Value field. You can get an estimate from online valuation tools or a direct offer from a dealer. In the Amount Owed on Trade-In field, enter the remaining balance on your current auto loan (your "payoff amount").
If your trade-in is worth more than you owe, the calculator will apply the positive equity, reducing your total loan amount.
If you owe more than the car is worth (known as negative equity), the calculator will add that remaining balance to your new loan.
4. Annual Interest Rate (APR): This is the total yearly cost of borrowing, expressed as a percentage. It typically includes both the interest rate and certain lender fees, according to the CFPB's explanation of APR. Actual APRs vary by lender and are subject to creditworthiness and loan terms.
The auto loan calculator's default rate is just a starting example. Replace it with a lender quote or the average for your credit tier in the rate table below.
5. Loan Term (Months): Enter the number of months you plan to take to repay the loan. Common terms are 36, 48, 60, 72, or even 84 months. In Q2 2026, the average loan term was 69.5 months for new cars and 67.9 months for used cars, according to Experian.
Shorter terms (like 48 months) have higher monthly payments but cost less in total interest.
Longer terms (such as 72 months) have lower monthly payments, but you will pay more in total interest.
The term table in the strategies section below shows the difference side by side.
6. Sales Tax Rate: Enter your state and local sales tax rate as a percentage. The calculator will determine the taxable amount and calculate the sales tax you are required to pay.
Trade-in rules vary by state. California and Virginia don't subtract a trade-in from the taxable price, and Michigan caps the trade-in credit at $12,000 for 2026. Check your state's revenue or DMV site before you rely on the tax estimate.
How Is a Car Loan Payment Calculated?
Lenders use a standard amortization formula that spreads principal and interest into equal monthly payments. An auto loan calculator runs the same math. Here's the formula:
M = P × [r(1 + r)n] ÷ [(1 + r)n − 1]
M: Your monthly payment.
P: The principal, or the amount you borrow.
r: Your monthly interest rate, which is your APR divided by 12.
n: The number of monthly payments in your loan term.
Here's how it works in practice, based on BestMoney's calculation. Borrowing $30,000 at 7% APR for 72 months comes to about $511.47 a month and $6,825.85 in total interest. Over 60 months, the same loan costs about $594.04 a month and $5,642.16 in interest, or about $1,184 less.
Early payments go mostly to interest. Think of it like paying rent on the money before you start buying it back. An amortization schedule shows how each monthly payment splits between principal and interest.
What Does Your Auto Loan Estimate Show?
Your estimate shows five numbers: monthly payment, loan amount, upfront payment, total interest cost and total loan payments. After you enter your information, the calculator will generate a breakdown of your estimated loan.
Monthly Payment: This is the primary result and the amount you can expect to pay your lender each month for the life of the loan.
Loan Amount: This is the total principal amount you are borrowing. Our calculator determines this by taking the Vehicle Price and subtracting your Down Payment and any Trade-In Equity, while adding any Negative Equity.
Upfront Payment: This is your total estimated cash due at signing. This calculator determines this figure by adding your Down Payment to the Calculated Sales Tax. This assumes you are paying for taxes in cash upfront rather than rolling them into the loan.
Total Interest Cost: This is the total amount of interest you will pay over the entire loan term. Seeing this number can be a useful reminder to choose a shorter loan term or make a larger down payment.
Total Loan Payments: This is the sum of your Loan Amount plus the Total Interest Cost. It represents the full amount you will have paid to your lender by the end of the loan term.
What Interest Rate Should You Enter?
Enter the APR from a pre-approval or lender quote if you have one. If you don't, start with the average for your credit tier.
The table below shows Experian's average auto loan rates by credit score for Q2 2026, using VantageScore 4.0. Across all borrowers, the average was 6.35% for new cars and 11.19% for used cars.
Average Auto Loan APR by Credit Score, Q2 2026 (Experian)
Credit tier | Score range | New-car APR | Used-car APR |
|---|---|---|---|
Super prime | 781–850 | 4.41% | 6.29% |
Prime | 661–780 | 6.15% | 8.81% |
Near prime | 601–660 | 9.71% | 13.93% |
Subprime | 501–600 | 13.52% | 19.10% |
Deep subprime | 300–500 | 16.11% | 21.62% |
Here's what that gap means for you. BestMoney calculated that a $30,000, 60-month loan at the super-prime average costs about $3,483.82 in interest. At the deep-subprime average, it costs about $13,877.78, or roughly $10,394 more.
These are averages, and your quote may differ. For context, the Federal Reserve raised its benchmark rate target to 3.75%–4.00% on Sept. 16, 2026.
How Can You Use the Auto Loan Calculator to Get a Better Deal?
Test different terms, down payments and rates to see how much each change could save you. The auto loan calculator also lets you adjust the numbers and explore different ways to save money. Here are a few strategies to try.
What Happens When You Change the Loan Term?
A longer term lowers your monthly payment but raises the total interest you pay. Toggle the loan term between 48, 60, and 72 months. You'll notice that extending the loan term lowers your monthly payment, but it also increases the total interest cost over the life of the loan.
This helps you find the right balance between an affordable payment and a total cost you're comfortable with. BestMoney calculated the payment and total interest on a $30,000 loan at 7% APR across four common terms.
BestMoney's Calculation: $30,000 Loan at 7% APR by Term
Loan term | Monthly payment | Total interest |
|---|---|---|
48 months | $718.39 | $4,482.59 |
60 months | $594.04 | $5,642.16 |
72 months | $511.47 | $6,825.85 |
84 months | $452.78 | $8,033.55 |
Longer loans also carry more risk. The CFPB's guide to comparing auto loan offers notes they're more likely to leave you owing more than the car is worth. If you're weighing a seven-year loan, read our guide to 84-month car loans.
How Much Does a Bigger Down Payment Save?
Putting $6,000 down on a $30,000 car at 7% APR for 60 months saves about $119 a month and $1,128 in interest (BestMoney's calculation). Try increasing the Down Payment by $1,000 or $2,000 to see how it lowers both your Monthly Payment and Total Interest Cost. This will help you understand the real benefit of saving a bit more before making your purchase.
BestMoney's Calculation: Down Payment on a $30,000 Car at 7% APR for 60 Months
Down payment | Amount financed | Monthly payment | Total interest |
|---|---|---|---|
$0 | $30,000 | $594.04 | $5,642.16 |
$6,000 | $24,000 | $475.23 | $4,513.73 |
A larger down payment may also lower your interest rate, according to the CFPB. Your down payment can be cash, trade-in proceeds or both.
Why Does Your Credit Score Matter So Much?
Your credit score is a significant factor in the APR lenders offer you, according to Experian. A higher credit score can get you a lower APR, as the rate table above shows. Before you shop, check your credit and take steps to improve it if necessary.
Can Extra Payments Lower Your Total Interest?
Yes, extra payments toward principal can shorten your loan and lower your total interest, because interest is charged on the remaining balance. Some auto loans carry prepayment penalties, so ask before you sign. Some states prohibit them, according to the CFPB.
What Costs Does the Auto Loan Calculator Leave Out?
The auto loan calculator covers the loan and sales tax, but it leaves out dealer fees, add-ons, registration and ownership costs. That's why a dealer quote can run higher than your estimate. The average new-vehicle transaction price was $50,562 in September 2026, according to Kelley Blue Book. Fees, add-ons and ownership costs come on top of the price you finance.
Dealer and title fees: Title, registration and dealer documentation or prep fees add to your cost (CFPB car affordability guide).
Optional add-ons: Add-ons raise your payment and loan amount, and their price is negotiable (CFPB negotiation guide).
Insurance and upkeep: Insurance, maintenance and gas are part of the true cost of owning the car (CFPB).
Trade-in tax treatment: State rules differ, so check the Sales Tax input above before you finalize your budget.
Interest on a qualified passenger vehicle loan is deductible whether you take the standard deduction or itemize, according to the IRS (March 2026). Learn who qualifies in our guide to the car loan interest tax deduction. This is general information, not tax advice.
What Auto Loan Terms Should You Know?
Three terms explain much of the numbers in your estimate: principal vs. interest, APR and trade-in equity. For a deeper walkthrough, see our guide to how car loans work.
Principal vs. Interest: The principal is the amount of money you borrowed. Interest is the fee you pay to the lender for borrowing that money. Each monthly payment you make is split between paying down the principal and paying the interest.
APR (Annual Percentage Rate): This is a more complete measure of a loan's cost than the simple interest rate. It includes the interest rate plus certain lender fees (CFPB). Auto lenders typically don't charge origination fees (Experian), so comparing APR to APR gives you a true "apples-to-apples" comparison of loan offers.
Trade-In Equity vs. Negative Equity: If your trade-in car is worth $15,000 and you owe $10,000, you have $5,000 in positive equity that acts like an extra down payment. If your car is worth $15,000 but you owe $18,000, you have $3,000 in negative equity (also called being "upside down"). That amount is added to your new loan principal.
Rolling an old loan balance into a new loan adds costs, according to the CFPB. Run the numbers with your payoff amount before you agree to a trade-in.
Who This Guide Is For
First-time buyers: Start with the rate table, then test a few down payment amounts before you compare offers.
Used-car shoppers: Expect higher average APRs than for new cars, so test shorter terms to limit interest.
Buyers with negative equity: Enter your payoff amount before you trade in, so the estimate shows your full loan.
Payment-focused shoppers: Compare total interest in the auto loan calculator at 60, 72 and 84 months.
Current borrowers: If rates or your credit have improved, see the refinancing question below.
What Should You Do Next?
Get pre-approved, compare lender quotes and keep the total cost in view. Once you have an estimate you're comfortable with, here's what to do next.
1. Get Pre-approved for a Loan: Before you go to the dealership, get pre-approved for an auto loan from your bank, a local credit union, or an online lender. This will provide a realistic interest rate and establish a firm budget. Learn more about getting pre-approved for a car loan.
2. Compare Offers from Multiple Lenders: Don't just take the first offer you get. Get quotes from several lenders to see who can give you a lower APR. A single percentage point can make a big difference in your total interest cost.
Multiple auto loan credit checks within 14 to 45 days generally count as a single inquiry, according to the CFPB's guide to rate shopping. To start, compare new and used auto loan providers.
3. Focus on the Total Cost, Not Just the Payment: The dealership may try to focus you on the monthly payment. Use your calculator results to stay focused on the Total Loan Payments and Total Interest Cost. A low monthly payment may not be a good deal if it's attached to a very long loan term that ultimately costs you thousands more.
Your Questions, Answered (FAQs)
How much should my down payment be on a car loan?
Put down what you can without draining your emergency savings, since more down means a smaller loan and less interest (CFPB). For reference, average Q3 2026 down payments were $5,554 for new cars and $3,865 for used cars (Edmunds).
Is a 60- or 72-month car loan better?
A 60-month loan costs less in total interest, while a 72-month loan lowers your monthly payment. In BestMoney's $30,000 example at 7% APR, the shorter term saves about $1,184 in interest.
What's a good interest rate for a car loan?
A rate below the Q2 2026 averages of 6.35% for new cars or 11.19% for used cars beats the typical borrower's rate (Experian). Super-prime borrowers, with scores of 781–850, averaged 4.41% on new cars.
How much car can I afford?
Start with a monthly payment that fits your budget after insurance, maintenance and gas, then work backward in the auto loan calculator. The CFPB suggests counting the true cost, including add-ons, taxes, fees and interest, minus your down payment or trade-in.
Can I refinance my car loan later?
Yes, refinancing may lower your rate or payment if rates drop or your credit improves. Find out when it makes sense in our guide on whether you can refinance your car loan.
Why Trust BestMoney?
This guide ties each figure to a named source or to BestMoney's own amortization calculations, so you can check the math in the auto loan calculator above. It was written by BestMoney Staff, whose editorial team reviewed 2026 data from Experian, Edmunds, Kelley Blue Book and the Federal Reserve. We also checked CFPB and IRS guidance and state tax-agency rules for California, Virginia and Michigan.
How We Researched This
BestMoney built this guide from secondary research, its own calculations and a review of the inputs other auto loan calculators use. We reviewed Q2 and Q3 2026 rate, payment and price data from Experian, Edmunds and Kelley Blue Book. We also reviewed the Federal Reserve's September 2026 rate decision, CFPB and IRS guidance and state tax-agency rules.
Every payment and interest example comes from BestMoney's standard amortization calculations. No proprietary BestMoney survey was used for this article.
Where We Got Our Information
Edmunds via GlobeNewswire, "New Car Financing Records Pile Up in Q3," Oct. 1, 2026
Experian, "Average Car Loan Interest Rates by Credit Score," Sept. 10, 2026
Kelley Blue Book, Average New-Vehicle Transaction Prices Report, Oct. 13, 2026
CFPB, "What Is the Difference Between a Loan Interest Rate and the APR?," reviewed Aug. 28, 2026
CFPB, "How Does a Down Payment Affect My Auto Loan?," reviewed Sept. 24, 2024
CFPB, "How Do I Compare Auto Loan Offers?," reviewed Jan. 30, 2024
CFPB, "How Will Shopping for an Auto Loan Affect My Credit?," reviewed Jan. 30, 2024
CFPB, "Can I Prepay My Loan at Any Time Without Penalty?," reviewed Jan. 30, 2024
CFPB, "How Much Can I Afford to Borrow for a Car or Auto Loan?," modified Oct. 28, 2025
CFPB, "What Things Can I Negotiate When Shopping for a Car or Auto Loan?," modified Aug. 28, 2024
Virginia DMV, Motor Vehicle Sales and Use Tax, updated Oct. 15, 2026
Disclaimer: The figures generated by this calculator are estimates only and should not be considered binding loan offers. Final terms may vary based on your credit profile, lender policies, and applicable state regulations.
All lending offers are subject to approval by licensed financial institutions. Consumers are encouraged to review terms carefully and consult with a financial advisor if needed.
Practical Next Steps
Test your terms: Compare 60, 72 and 84 months to see what a lower payment costs in interest.
Know your rate tier: Use a lender quote or the average for your credit tier as your APR.
Budget for the total cost: Add fees, add-ons, insurance and upkeep to your auto loan calculator estimate.
Scroll back up to the auto loan calculator and run your numbers with a real quote. Then read our guide to getting the right car loan.
Written byBestmoney Staff
The BestMoney editorial team is composed of writers and experts covering a full range of financial services. Our mission is to simplify the process of selecting the right provider for every need, leveraging our extensive industry knowledge to deliver clear, reliable advice.