CAR PAYMENT
CAR PAYMENT
M = P·r(1+r)ⁿ / ((1+r)ⁿ-1)
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Principal & interest only. Doesn't include sales tax, title, registration, or extended warranty add-ons. Average new-car rates in 2026: 7–9%; used: 9–12%.
Not financial advice. This calculator provides estimates using industry-standard formulas for educational purposes only. Real loan terms vary based on your credit, lender fees, and program-specific rates. For any major financial decision (home purchase, large loan, refinance), consult a licensed loan officer or financial advisor before signing anything.
About this calculator
This car payment calculator estimates your monthly auto loan payment. Enter the vehicle price, your down payment in cash, the trade-in value of your current vehicle (if any), the loan term in months, and the interest rate. The calculator returns your monthly principal and interest payment along with the total amount financed and total interest paid over the life of the loan. Sales tax varies by state — some states tax the full price, others tax price minus trade-in. If you want to include sales tax, add it to the vehicle price.
Common questions
What's a good interest rate on a car loan?
In 2026, excellent credit (740+) gets 6–8% on new cars and 7–10% on used. Average credit (660–739) sees 9–12% new and 11–14% used. Subprime (under 660) ranges from 14–22%. Always check your bank or credit union before accepting dealer financing — credit unions usually beat dealer rates by 1–3 points.
Should I take a 60-month or 72-month loan?
60 months (5 years) is the sweet spot: lower interest paid than 72 or 84, payment stays manageable, and the car is paid off before major repairs hit. 72 and 84 month loans look attractive for the lower payment but you'll be underwater (owe more than car is worth) for most of the loan, and you'll pay 30–60% more total interest.
How much should I put down on a car?
Aim for 20% down on new and 10% on used to avoid being underwater immediately (new cars lose 20% of value in year one). If you can't hit that, consider GAP insurance to cover the difference between loan balance and car value if it's totaled. Trade-in value counts as down payment.