Calculate Your Car Payment
Vehicle Loan Calculator: US Rates, Terms and Taxes
This vehicle loan calculator works out the monthly car payment a US buyer would actually make, not a rough estimate: it adds sales tax to the sticker price, subtracts your down payment and trade-in value, and amortizes the rest at the APR a lender would quote. A car payment estimator is only as honest as its inputs, so every number below is editable - price, down payment, trade-in, APR, term, tax rate and any extra monthly payment. Nothing is uploaded and nothing is stored; the arithmetic runs in your browser.
APR is not the same as the interest rate
The interest rate is the cost of borrowing the money; the APR is that rate plus the lender fees, and it is the APR that decides your payment. A car loan interest rate calculator is only useful if it takes the APR, because a 6.00% interest rate with a $400 origination fee is a 6.40% APR on a $30,000 loan. This tool takes the APR directly, so the payment it shows is the one a US lender would quote.
What the payment looks like at each loan term
The same $35,000 car with $5,000 down, 6.25% sales tax and a 6.97% APR (the prime rate this tool starts on) costs a very different amount depending on the term. The loan is $32,187.50 either way; only the spread changes.
| Loan term | Monthly payment | Total interest | Total of payments |
|---|---|---|---|
| 36 months (3 years) | $993.42 | $3,575.44 | $35,762.94 |
| 48 months (4 years) | $770.32 | $4,787.95 | $36,975.45 |
| 60 months (5 years) | $636.90 | $6,026.24 | $38,213.74 |
| 72 months (6 years) | $548.30 | $7,290.20 | $39,477.70 |
Going from 60 to 72 months takes $88.60 off the monthly payment and adds $1,263.96 of interest. That is the trade a car loan interest rate calculator makes visible: a longer term always lowers the payment and always raises the cost.
Down payment, sales tax and the fees the dealer adds
The down payment comes off first, so a bigger one reduces the amount you borrow and the interest you pay on it. The common US guideline is 20% down on a new car and 10% on a used one, which on a $35,000 car means putting $7,000 on the table instead of $5,000.
Sales tax is charged on the vehicle price and, in most states, is financed - so you pay interest on your tax. Rates vary widely: Oregon charges 0%, Texas 6.25%, California 7.25% plus local district tax. The title and registration fees a dealer charges are not part of this calculation, so add them to the price yourself if you want the out-the-door number; use the trade-in field for the value of the car you are replacing.
Where this fits in your overall money plan
A car payment is only one line of a budget. If you want to see the same math applied to a home, use the mortgage calculator with PMI, tax and insurance. If the car loan is the debt you are trying to clear, the debt payoff calculator compares snowball against avalanche and shows the payoff date. For the income side of the equation, the paycheck calculator works out take-home pay after federal, state and FICA deductions, and the loan calculator shows what extra monthly payments do to any loan. The compound interest calculator is the mirror image: what a down payment earns if you keep it instead of putting it in the car.
How This Auto Loan Calculator Works
This calculator uses the standard amortization formula to compute your monthly car payment. The formula is: M = P × [r(1+r)^n] / [(1+r)^n - 1], where M is the monthly payment, P is the loan principal (vehicle price + tax - down payment - trade-in), r is the monthly interest rate (APR / 12), and n is the number of months.
Why AI Cannot Replace This Tool
Large language models frequently hallucinate auto loan calculations. They misapply amortization formulas, confuse APR with monthly rates, mishandle sales tax, and produce inconsistent results for the same inputs across different conversations. This tool uses deterministic JavaScript math with no approximation, no hallucination, and no variability. Every calculation is bit-exact and reproducible.
Frequently Asked Questions
What is a good APR for a car loan in 2026?
As of mid-2026, the average APR for a 60-month new car loan is approximately 6.97%. Super prime borrowers (FICO 781+) can qualify for rates as low as 4.66%, while deep subprime borrowers (FICO below 500) face rates up to 16.01%. Credit unions typically offer rates 0.4-0.6% below commercial banks.
How much car can I afford?
The standard guidance is to keep total monthly auto costs (loan payment + insurance + fuel + maintenance) under 15% of your monthly take-home pay. The 20/4/10 rule recommends: at least 20% down payment, maximum 4-year loan term, and total transportation costs under 10% of gross income.
Should I get a 72-month or 84-month car loan?
Longer terms lower your monthly payment but significantly increase total interest paid and extend the period you are underwater on the loan. For example, a $30,000 loan at 7% costs $594/month for 60 months ($5,640 interest) vs $476/month for 84 months ($9,969 interest). The 84-month term costs $4,377 more in interest. Choose the shortest term you can afford.
How does sales tax affect my car loan?
Sales tax is typically added to the vehicle price and financed as part of the loan. Rates vary by state: Oregon charges 0%, Texas 6.25%, California 7.25% (higher with local additions). Rolling tax into the loan means you pay interest on it for the entire term, increasing your total cost. This calculator includes sales tax in the loan amount for an accurate estimate.
What is the difference between APR and interest rate?
APR (Annual Percentage Rate) includes both the interest rate and any fees or costs associated with the loan, giving you the true cost of borrowing. The interest rate is just the cost of borrowing the principal. APR is always equal to or higher than the interest rate. When comparing loans, always compare APR, not just the interest rate.
Can I pay off my auto loan early?
Yes, and this calculator shows you exactly how much you save by making extra payments. Even an extra $50/month can save hundreds in interest and shorten your loan by months. However, check your loan agreement for prepayment penalties before making extra payments. Some lenders charge a fee for early payoff, typically 1-2% of the remaining balance.
Does this tool save my financial data?
No. All calculations happen entirely in your browser using JavaScript. Your financial data never leaves your device, is never stored on any server, and is never transmitted over the internet. This is 100% private. You can verify this by checking the Network tab in your browser's developer tools.
How accurate is this calculator compared to a dealer's quote?
This calculator uses the standard amortization formula that matches what banks and credit unions use. The results will match a dealer's quote within pennies if the same inputs are used. However, dealer quotes may include additional fees (documentation, title, registration, extended warranty) that this calculator does not include. Always get the out-the-door price before comparing.
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