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Auto Loan Calculator

Use this auto loan calculator to estimate your monthly car payment with your down payment, trade-in, sales tax and fees, see the total interest, and, for a new U.S.-assembled car, how much the 2025–2028 car loan interest deduction could save you.

Updated By Hassan Arslan How we build & check our calculators

The car and the loan

To estimate the 2025–2028 interest deduction.

Your results

Monthly payment

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Amount financed

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Total interest

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Cash at signing

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Where the money goes

Estimate for education only, based on your inputs and the rules explained below. Not financial, tax or legal advice. How we calculate

How to use this calculator

  1. Enter the price you negotiated, before tax and fees, and your down payment.
  2. Enter your trade-in: what the dealer is paying for it and what you still owe on it.
  3. Enter your state’s sales tax and the fees, and choose whether to pay them up front or add them to the loan.
  4. Enter the APR and term from your loan offer. Compare a few terms to see the trade-off between payment and interest.
  5. Buying new and U.S.-assembled? Leave the box ticked and enter your income to estimate the interest deduction.

What you’ll actually finance

Amount financed = price − down payment − (trade-in value − amount owed) + tax and fees you roll in

Example: a $40,000 car with $4,000 down and a trade-in worth $8,000 with $3,000 still owed. Sales tax of 6% on the price minus the trade-in is $1,920, and fees are $800. Rolled into the loan, you finance $33,720. At 6.35% for 60 months, that’s $657.40 a month and $5,724 of interest.

Most states tax the price minus your trade-in, but a few tax the full price, and rebates can be taxed differently. Your dealer’s buyer’s order shows the exact figures.

Car payments by rate and term

Monthly payment per $10,000 financed:

APR 36 months48 months60 months72 months84 months
4% $295.24$225.79$184.17$156.45$136.69
5% $299.71$230.29$188.71$161.05$141.34
6% $304.22$234.85$193.33$165.73$146.09
7% $308.77$239.46$198.01$170.49$150.93
8% $313.36$244.13$202.76$175.33$155.86
10% $322.67$253.63$212.47$185.26$166.01
12% $332.14$263.34$222.44$195.50$176.53
15% $346.65$278.31$237.90$211.45$192.97

Multiply by your loan amount in tens of thousands: a $30,000 loan at 7% for 60 months is 3 × $198.01 = $594.04.

How long should a car loan be?

Longer loans lower the payment but raise the total interest, and they keep you owing more than the car is worth for longer, because cars lose value fastest in the first years. On a $35,000 loan at 7%:

TermMonthly paymentTotal interest
36 months $1,080.70 $3,905
48 months $838.12 $5,230
60 months $693.04 $6,583
72 months $596.72 $7,963
84 months $528.24 $9,372

A popular rule of thumb, the 20/4/10 rule, suggests putting 20% down, borrowing for no more than four years and keeping total car costs, including insurance and fuel, under 10% of your gross income. If only a 72- or 84-month loan makes the payment work, a less expensive car is usually the safer choice. If you’re also planning a mortgage, check how the payment affects your debt-to-income ratio.

The car loan interest deduction (2025–2028)

The 2025 tax law lets you deduct up to $10,000 a year of interest on a loan for a new car, SUV, pickup, van or motorcycle for personal use, if its final assembly was in the United States and the loan started after 2024. It’s claimed on Schedule 1-A whether or not you itemize, for tax years 2025 through 2028. The Schedule 1-A calculator combines it with the tips, overtime and senior deductions.

  • Income limit: the deduction shrinks by $200 for each $1,000 of modified AGI above $100,000 ($200,000 for joint filers).
  • Doesn’t qualify: used cars, leases, business vehicles and loans from family members.
  • Check the assembly point on the window sticker or with NHTSA’s VIN decoder, and keep the lender’s interest statement.

For the example loan, with the first payment in November 2026 and a single filer earning $90,000, the deductible interest is about $3,780 across 2026 to 2028, saving roughly $832 of federal tax. Our car loan interest deduction calculator goes into the rules in detail.

Average auto loan rates

In the second quarter of 2026, the average rate was 6.35% for new-car loans and 11.19% for used cars, and the average monthly payment was about $765 for a new car and $531 for a used one, according to Experian. Rates vary widely with your credit score: borrowers with excellent credit pay a fraction of what those with poor credit do.

How to lower your car payment

  • Get preapproved by a bank or credit union before you shop, so you can compare the dealer’s offer with a real alternative.
  • Negotiate the price, not the payment. A dealer can hit any monthly number by stretching the term.
  • Put more down, or pay the tax and fees in cash so you don’t pay interest on them.
  • Watch the add-ons such as extended warranties and paint protection, which are often rolled into the loan.
  • Refinance later if your credit improves or rates fall.

Frequently asked questions

How is a car loan payment calculated?
The amount financed (price, minus your down payment and trade-in equity, plus any taxes and fees you roll in) is spread over the term with the standard loan formula: payment = amount × 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 $35,000 car loan?
At 7% APR it’s $693.04 a month over 60 months or $528.24 over 84 months, but the longer loan costs $2,790 more in interest.
Is car loan interest tax-deductible?
For 2025 through 2028, yes, up to $10,000 a year, if the loan is for a new vehicle for personal use whose final assembly was in the United States. The deduction shrinks above $100,000 of modified AGI ($200,000 joint). Used cars, leases and business vehicles don’t qualify.
Is sales tax included in a car loan?
It can be. Many buyers roll the sales tax, title, registration and dealer fees into the loan, which means paying interest on them. In most states, sales tax applies to the price minus your trade-in, so a trade-in also saves tax.
What happens if I owe more on my trade-in than it’s worth?
That negative equity is usually added to the new loan, so you start out owing more than the new car is worth. Paying it down first, or choosing a cheaper car or shorter term, keeps it from carrying over again.

Sources

Key terms

About this calculator. Calcvera’s Auto Loan Calculator is written and maintained by Hassan Arslan and was last reviewed on September 29, 2026. Rules and figures are checked against “Auto loan rates and financing”, “Average car payment” and the other sources listed above. Results are estimates for education — not financial, tax or legal advice. Found an error? Tell us and we'll fix it. See our methodology and editorial policy.