Calculate your monthly car payment with trade-in value, sales tax, and true loan cost. Instant results.
This auto loan calculator includes all the factors that affect your real car payment: vehicle price, down payment, trade-in value, state sales tax, interest rate, and loan term. Many buyers forget that sales tax is added to the financed amount, increasing the loan balance. Enter your state's sales tax rate or the exact rate from your dealer to see your true monthly car payment. All calculations run in your browser — your data never leaves your device.
As of 2026, average new car loan rates are around 7%–9% for buyers with good credit (700+ score). Used car loans typically run 1–2 percentage points higher. Credit unions often offer rates 1–2% lower than banks. A rate below 6% for a new car is generally excellent.
A trade-in reduces the amount you need to finance. If your car is worth $8,000 as a trade-in, that $8,000 is subtracted from the vehicle price before calculating your loan. This reduces your monthly payment and total interest paid. Our auto loan calculator lets you enter your trade-in value separately.
A larger down payment reduces the amount financed, lowering your monthly payment and total interest paid. It also helps avoid being "underwater" on the loan (owing more than the car is worth), which is important since cars depreciate quickly. Aim for at least 10–20% down on a new car.
Financial advisors often recommend keeping total car expenses (payment + insurance + gas + maintenance) under 15–20% of your take-home pay. For most people, this means a car payment of $300–$600/month. Our calculator helps you find the loan amount that fits your budget.
Shorter loan terms (36–48 months) cost less in total interest but have higher monthly payments. Longer terms (60–84 months) lower your monthly payment but you pay more interest overall and risk being underwater on a depreciating asset. Most financial experts recommend keeping auto loans to 60 months or less.