Auto Loan Calculator
Calculate your monthly car loan payment, total interest paid, and view full amortization schedule.
Monthly Payment
$0
Principal & Interest
💡 USA Average Auto Loan Rates (2026)
Quick Answer
For a $35,000 vehicle with a $5,000 down payment, a 60-month auto loan at 7% interest, the estimated monthly payment is approximately $659. Total interest paid over the loan term is approximately $9,540. Adjust the calculator above with your own vehicle price and rate for a personalized estimate.
Amortization Schedule
| Month | Payment | Principal | Interest | Balance |
|---|
What is an Auto Loan Calculator?
Whether you search for "car loan calculator," "auto loan calculator," or simply "auto loan," this tool gives you the same accurate monthly payment breakdown for financing a new or used vehicle.
An auto loan calculator estimates your monthly car payment based on the vehicle price, down payment, trade-in value, interest rate, and loan term. It also factors in sales tax and fees, giving you a realistic picture of your total financing cost before you visit a dealership, so you can negotiate with confidence and stay within your budget.
How to Use the Auto Loan Calculator Step by Step
- Enter the vehicle price — the negotiated purchase price of the car.
- Enter your down payment — either as a dollar amount or percentage of the price.
- Add your trade-in value — if you're trading in your current vehicle.
- Select your loan term — from 24 to 84 months depending on the lender.
- Enter your interest rate — based on your credit score and whether the vehicle is new or used.
- Add sales tax and fees — check your state's sales tax rate for accurate results.
- Review your results — see your monthly payment, total interest, and full amortization schedule.
Current Auto Loan Rates in USA 2026
As of July 2026, average auto loan rates in the USA depend heavily on credit score and whether the vehicle is new or used. Excellent credit borrowers can secure rates as low as 5%, while fair credit borrowers on used vehicles may see rates above 15%.
| Credit Score | New Car Rate | Used Car Rate |
|---|---|---|
| 750+ Excellent | 5% – 6.5% | 7% – 9% |
| 700 – 749 Good | 6.5% – 8% | 9% – 11% |
| 650 – 699 Fair | 8% – 11% | 11% – 15% |
| Below 650 | 11% – 16% | 15% – 20%+ |
Rates are illustrative averages based on national market conditions in 2026 and may vary by lender, region, and vehicle type.
What Affects Your Auto Loan Payment?
- Vehicle Price: The negotiated price directly determines your loan amount before tax and fees.
- Down Payment: A larger down payment, ideally 10% to 20%, reduces your loan amount and monthly payment.
- Loan Term: Longer terms lower monthly payments but increase total interest paid and risk of being underwater.
- Interest Rate: Determined by your credit score, loan term, and whether the vehicle is new or used.
- Sales Tax: Varies by state from 0% in states like Oregon to over 7% in states like California.
- Trade-In Value: Reduces the amount you need to finance, directly lowering your monthly payment.
Auto Loan Calculator FAQs
How much car can I afford with my income?
Financial experts recommend the 20/4/10 rule: pay at least 20% down, choose a loan term of 4 years or less, and keep your total monthly car payment under 10% of your gross monthly income. For someone earning $60,000 per year, this means a car payment under $500 per month.
Should I choose a 60-month or 72-month auto loan?
A 60-month loan has higher monthly payments but significantly lower total interest. A 72-month loan lowers your monthly payment but increases total interest paid and raises the risk of owing more than the car is worth. Choose the shortest term you can comfortably afford.
Does my trade-in reduce sales tax on my new car?
In most states, yes — trade-in value is subtracted from the purchase price before sales tax is calculated, effectively reducing your tax bill. However, a handful of states tax the full purchase price regardless of trade-in, so check your state's specific rules.
Is it better to finance through a dealership or a bank?
It's best to get pre-approved by a bank or credit union before visiting the dealership, then compare that rate to any dealership financing offers. Dealerships sometimes offer promotional 0% APR deals on new vehicles, but bank or credit union rates are often more competitive for used cars or lower credit scores.
Tips to Get the Best Auto Loan Rate
- Get pre-approved first: Shopping with a pre-approved rate strengthens your negotiating position at the dealership.
- Increase your down payment: A larger down payment reduces both your loan amount and lender risk.
- Choose a shorter loan term: 36 to 48 month terms typically carry meaningfully lower interest rates than 72+ months.
- Compare credit unions: Credit unions often offer rates 1% to 2% lower than traditional banks or dealership financing.
- Avoid unnecessary add-ons: Extended warranties and add-ons rolled into your loan increase your monthly payment and total interest.
New Car vs Used Car Financing
| New Car | Used Car | |
|---|---|---|
| Average Interest Rate | 5% – 8% | 7% – 15% |
| Depreciation | Fast (20% year 1) | Slower |
| Warranty Coverage | Full manufacturer warranty | Limited or expired |
Disclaimer: This calculator provides estimates only and does not constitute financial advice. Actual rates, taxes, and fees depend on your lender, state, and credit profile. Consult your lender or dealer for exact financing terms.