Auto Loan Calculator

Calculate your monthly car payment with our auto loan calculator. Includes down payment, trade-in value, and sales tax in the calculation.

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$5,000$150,000
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$0$50,000
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$0$50,000
%
0%20%
%
0%12%

Loan Summary

Monthly Payment$628.07
Loan Amount$32,100
Total Interest$5,584.4
Sales Tax$2,100
Total Cost$42,684.4

Cost Breakdown

How to Calculate Your Car Payment

Your auto loan payment depends on the vehicle price, down payment, trade-in value, interest rate, loan term, and sales tax. Understanding these factors helps you budget and negotiate effectively.

Tips for Getting the Best Auto Loan

  • Get pre-approved — Apply at your bank or credit union before visiting the dealer
  • Negotiate the total price — Focus on the out-the-door price, not the monthly payment
  • Keep the term short — 48-60 months saves thousands vs 72-84 months
  • Make a substantial down payment — 20% keeps you from being underwater
  • Compare multiple offers — Get quotes from at least 3 lenders

The 20/4/10 Rule

A popular guideline for car affordability: put at least 20% down, finance for no more than 4 years, and keep total transportation costs (payment + insurance + gas) under 10% of gross income.

Frequently Asked Questions

What is a good interest rate for a car loan?
As of 2026, good rates for new cars are around 4-6% for excellent credit (750+), 6-9% for good credit (700-749), and 9-14% for fair credit (600-699). Used car rates are typically 1-2% higher. Credit unions often offer the best rates.
How long should my car loan be?
Financial experts recommend 48-60 months maximum. While 72-84 month loans have lower payments, you pay significantly more interest and risk being "underwater" (owing more than the car is worth) for a longer period.
Should I make a down payment on a car?
Yes, aim for at least 20% down on a new car or 10% on a used car. A larger down payment reduces your loan amount, monthly payment, total interest, and the risk of being upside-down on the loan.
Is it better to trade in or sell my old car privately?
You typically get 15-25% more selling privately than trading in. However, a trade-in is more convenient and may reduce sales tax in some states (you only pay tax on the price difference).

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