Auto Loan Calculator
Estimate your monthly car payment with sales tax, fees, your down payment and trade-in. Compare loan terms and see how much interest the car really costs.
Total cost includes your down payment, trade-in value, tax, fees and interest. Estimates only; your lender's figures may differ.
Compare loan terms
The same loan at every common term, using the numbers above.
| Term | Monthly payment | Total interest | Total of payments |
|---|
How a car payment is calculated
A car loan is a fixed-rate installment loan, so the payment uses the same amortization formula as a mortgage or personal loan. The main difference is working out how much you actually borrow.
Most states charge sales tax on the price after the trade-in is subtracted, which is one reason trading in at the dealer can save money. A few states tax the full price, so check your state's rule and adjust the trade-in or tax figure if needed.
Worked example: a $35,000 car
Say you buy a $35,000 car with $5,000 down and no trade-in. Sales tax is 6% and title and registration fees come to $800, both rolled into a 60-month loan at 6.5% APR.
- Sales tax: 6% × $35,000$2,100
- Amount financed: $35,000 − $5,000 + $2,100 + $800$32,900
- Monthly payment (60 months at 6.5%)$643.73
- Total interest$5,723.56
- Total cost of the car$43,623.56
Stretching the same loan to 84 months drops the payment to $488.55 but pushes interest to $8,137.82. Shortening it to 48 months raises the payment to $780.22 and cuts interest to $4,550.64.
Payment on a $30,000 car loan
Monthly payment by term at Experian's Q2 2026 average rates of 6.35% for new cars and 11.19% for used cars.
| Term | New (6.35%) | Used (11.19%) |
|---|---|---|
| 36 months | $917.42 | $984.86 |
| 48 months | $709.37 | $778.14 |
| 60 months | $584.88 | $655.12 |
| 72 months | $502.16 | $573.95 |
| 84 months | $443.31 | $516.68 |
Rates depend heavily on credit. The same $30,000 over 60 months costs $3,150 in interest at 4% but $15,708 at 18%, so improving your score or shopping lenders can matter as much as the car you pick.
Tips for a cheaper car loan
- Get preapproved before the dealership. A quote from a bank or credit union gives you a rate to beat.
- Negotiate the price, not the payment. A low payment can hide a long term and a higher total cost.
- Put more down. Around 20% down on a new car helps you avoid owing more than it is worth.
- Keep the term as short as you can afford. Shorter loans usually come with lower rates as well as less interest.
- Watch add-ons. Extended warranties and extras rolled into the loan also collect interest.
- Budget for ownership. Insurance, fuel and maintenance come on top of the payment. See what fits your pay with the Hourly to Salary Calculator.
Frequently asked questions
How is a car loan payment calculated?
First find the amount financed: the car price minus your down payment and trade-in, plus sales tax and any fees rolled into the loan. Then apply the loan formula M = P × r ÷ (1 − (1 + r)^−n), where r is the APR divided by 12 and n is the number of months.
What is the payment on a $30,000 car loan?
At a 6.35% APR over 60 months, a $30,000 car loan costs about $584.88 a month and $5,092.74 in interest. At 11.19%, closer to the average used-car rate, the payment is about $655.12.
Is a 72-month or 84-month car loan a good idea?
Longer terms lower the monthly payment but increase total interest, and they raise the chance of owing more than the car is worth for several years. If you choose a long term, a larger down payment and extra principal payments help limit that risk.
Is sales tax included in a car loan?
Often, yes. Many buyers roll sales tax, title and registration fees into the loan instead of paying them upfront. In most states, sales tax is charged on the price after subtracting a trade-in, but rules vary by state.
What is a good interest rate for a car loan?
It depends on your credit score and whether the car is new or used. Experian's Q2 2026 data put the average rate at 6.35% for new cars and 11.19% for used cars. Borrowers with excellent credit often qualify for less, and those with lower scores usually pay more.
This calculator is for educational purposes only and is not financial advice. Sales tax rules, fees and loan terms vary by state and lender. Review the retail installment contract for the exact amount financed, APR and payment.