Auto Loan Calculator for new and used cars. It works out the monthly payment or the price a payment can buy, with trade-in, sales tax, fees and the 2025 to 2028 interest deduction.
Picking a credit score fills in Experian’s Q2 2026 average rate for that tier. Type your own quote over it if you have one.
Trade-In and Rebates
If you owe more on your trade-in than it is worth, the difference is added to the new loan.
Sales Tax and Fees
Tax is charged on the price minus your trade-in, as in most states. A cash rebate usually does not lower the taxed amount.
Payoff Date and Tax Deduction
Interest on a loan for a new, U.S.-assembled car can be deducted for tax years 2025 to 2028, up to $10,000 a year. The deduction shrinks above $100,000 of income, or $200,000 for joint filers.
Compare Loan Terms
| Term | Payment | Total Interest |
|---|---|---|
| 36 months | $1,176.91 | $3,769 |
| 48 months | $909.18 | $5,041 |
| 60 months | $748.94 | $6,336 |
| 72 months | $642.45 | $7,656 |
| 84 months | $566.67 | $9,000 |
Same amount financed and rate for every row. Lenders often charge more for longer terms, so real long-term quotes can cost even more.
Payment Schedule by Year
| Year | Interest | Principal | Balance |
|---|---|---|---|
| 2026 (2 mo) | $393 | $1,105 | $37,495 |
| 2027 | $2,114 | $6,873 | $30,622 |
| 2028 | $1,680 | $7,308 | $23,314 |
| 2029 | $1,217 | $7,770 | $15,544 |
| 2030 | $726 | $8,262 | $7,283 |
| 2031 (10 mo) | $207 | $7,283 | $0 |
Early payments are mostly interest. Extra payments in the first years cut total interest the most.
Average Rates by Credit Score
| Credit Tier | New | Used |
|---|---|---|
| Super prime (781+) | 4.41% | 6.29% |
| Prime (661–780) | 6.15% | 8.81% |
| Near prime (601–660) | 9.71% | 13.93% |
| Subprime (501–600) | 13.52% | 19.10% |
| Deep subprime (300–500) | 16.11% | 21.62% |
Averages from Experian’s State of the Automotive Finance Market, second quarter of 2026, using VantageScore 4.0 tiers.
How the Auto Loan Calculator Builds Your Payment
The Auto Loan Calculator turns a car price, down payment, trade-in, sales tax and fees into the monthly payment a lender will charge. It also runs the other way, showing the most car a set monthly payment can buy. It adds a full payoff schedule and the federal interest deduction for new, U.S.-built cars.
Buyers use it to check a dealer’s payment quote before signing and to compare loan offers from banks and credit unions. The credit score menu fills in Experian’s average rate for your tier, and you can type your own quote over it.
From Sticker Price to Amount Financed
The loan starts with the price, minus your down payment, any cash rebate and your trade-in equity. When taxes and fees are rolled into the loan, they are added on top. Sales tax is charged on the price minus your trade-in, which is how most states handle it.
$$L = P – D – R – (T_v – T_o) + \text{tax} + \text{fees}$$
In this formula, P is the price, D the down payment and R the rebate. Tv is the trade-in value and To what you still owe on it. At the defaults, a $40,000 car with $5,000 down, 7% tax and $800 in fees finances $38,600.
Enter the vehicle price before tax and fees. A dealer quote that already includes them counts the tax twice and inflates the payment. The Out the Door Price Calculator splits a quote into price, tax and fees.
Some states tax the price before a cash rebate comes off, so the rebate lowers your loan but not your tax. The tool follows that rule. If your state taxes the price after the rebate, lower the tax rate slightly to match.
The Monthly Payment Formula
Car loans use standard amortization. Each payment is the same, and each month’s interest is charged on the balance still owed.
$$M = L \times \frac{r}{1 – (1 + r)^{-n}}$$
In this formula, M is the monthly payment, r is the APR divided by 12, and n is the number of months. The default $38,600 at 6.15% for 60 months comes to $748.94 a month and $6,336 in total interest.
At 0% APR the formula simplifies to the loan divided by the months. The tool accepts rates from 0% to 40%, loan terms of 6 to 120 whole months, and prices from $1,000 to $1,000,000. If your down payment, trade-in and rebate cover the whole price, it reports that no loan is needed.
Because interest follows the balance, early payments are mostly interest. In the default loan, the first full year charges $2,114 in interest. The last ten months charge only $207, which is why extra payments made early save the most.
Average Rates by Credit Score
Your credit tier moves the payment more than almost any other input. The table below shows Experian’s Q2 2026 averages, which use VantageScore 4.0 tiers. The overall average was 6.35% for new cars and 11.19% for used cars.
| Credit Tier | New Car APR | Used Car APR | Interest on the Default $38,600 Loan |
|---|---|---|---|
| Super prime (781+) | 4.41% | 6.29% | $4,483 |
| Prime (661–780) | 6.15% | 8.81% | $6,336 |
| Near prime (601–660) | 9.71% | 13.93% | $10,278 |
| Subprime (501–600) | 13.52% | 19.10% | $14,715 |
| Deep subprime (300–500) | 16.11% | 21.62% | $17,856 |
The last column uses the new-car rate over 60 months. Moving from deep subprime to super prime cuts about $13,400 of interest from the same car. If your quote is more than half a point above your tier’s average, the tool shows how much the average rate would save.
Shorter Terms Against Longer Terms
Stretching the loan lowers the payment but raises total interest. At the same 6.15% rate, the default loan costs $1,176.91 a month over 36 months with $3,769 in interest. Over 84 months it drops to $566.67 a month, but interest rises to $9,000.
Experian’s Q2 2026 data puts the average new-car loan at 69.46 months and the average used-car loan at 67.86 months. Near prime new-car buyers averaged the longest terms at 75.49 months. The “Compare Loan Terms” table holds the rate fixed, while real lenders often charge more for longer terms.
The payment is only one part of what the car costs you. The Car Ownership Cost Calculator adds depreciation, insurance, fuel and repairs to the interest shown here.
Working Backward From a Payment
Switching “Solve For” to “Car Price I Can Afford” turns the formula around. The tool finds the loan a payment can support, then works out the price after adding back your down payment and trade-in and taking out tax and fees.
At $700 a month, 6.15% for 60 months, $5,000 down, 7% tax and $800 in fees, the most you can pay is about $37,643 before tax. A payment too small to buy a $1,000 car after fees and any old loan balance returns a warning instead of a price.
Trade-Ins That Are Still Upside Down
When you owe more on your trade-in than it is worth, the shortfall is added to the new loan. A car worth $10,000 with $16,000 still owed adds $6,000 to what you borrow. The tool flags this in amber and shows the rolled-in amount on the third card.
Loan-to-value compares the loan with the car’s price. Above 100%, the car is worth less than you owe from the first day, and above 110% the tool warns that you are underwater. The GAP Coverage Calculator sizes the gap an insurer would not pay if the car were totaled.
A realistic trade-in figure keeps the math honest. The Used Car Value Calculator estimates what your current car is worth before a dealer makes an offer.
The 2025 to 2028 Car Loan Interest Deduction
The 2025 federal tax law lets buyers deduct up to $10,000 a year of interest on a loan for a new car with final assembly in the U.S. It covers tax years 2025 through 2028. The IRS proposed rules in January 2026 and finalized them in September 2026.
The loan must be taken out after December 31, 2024, secured by a first lien on the car, and used for personal driving more than half the time. The deduction is available whether you itemize or not. It drops by $200 for every $1,000 of modified AGI above $100,000, or $200,000 for joint filers, so it is gone at $150,000 and $250,000.
Interest on financed sales tax, fees and extended warranties qualifies. Interest on negative equity from a trade-in does not, but your down payment offsets that negative equity first. With $6,000 rolled in and $5,000 down, only the interest on $1,000 is excluded.
At the defaults, payments start in November 2026, so only 26 payments fall inside the window. That leaves $4,187 of deductible interest, worth $921 in the 22% bracket. The Car VIN Decoder shows a car’s assembly plant, which is the quickest way to confirm U.S. final assembly.
Entries That Skew the Payment
Entering a 0% promotional rate together with a cash rebate often overstates the deal. Automakers usually offer one or the other on the same car. Run both versions and keep the one with the lower total cost.
Leaving “Still Owed on Trade-In” at zero when a loan remains on your current car understates the new loan. Check your lender’s payoff figure, which includes interest up to the payoff date, rather than the balance on your last statement.
Marking “Qualifies for the Deduction” for a leased, used or imported car adds a tax saving you will not get. Only new cars with U.S. final assembly qualify, and a familiar American brand does not guarantee it.
Before You Sign the Loan
What is a good interest rate for a car loan right now?
Compare against your credit tier, not the overall average. In Q2 2026, Experian’s average new-car rate was 4.41% for super prime borrowers and 6.15% for prime, rising to 16.11% for deep subprime. Used-car rates ran about 2 to 5 points higher in every tier.
A quote at or below your tier’s average is a fair rate. Get preapproved by two or three lenders within the same two weeks so the credit checks count as one, then enter each APR in the tool to compare total interest.
Is a 72- or 84-month car loan a bad idea?
It costs more, and it keeps you owing more than the car is worth for longer. On the default $38,600 loan, 84 months costs $2,664 more in interest than 60 months at the same rate. Lenders also often charge higher rates on longer terms.
A long term can make sense for a buyer with a promotional rate and a stable budget. If it is the only way the payment fits, a less expensive car usually costs less overall.
How much car can I afford on my income?
Navy Federal Credit Union suggests keeping the loan payment to about 10% to 15% of your take-home pay. On $5,000 a month after taxes, that is $500 to $750. Enter that range in “Car Price I Can Afford” to see the price it buys.
The 20/4/10 Rule Calculator applies a stricter test. It calls for 20% down, a loan of four years or less, and total car costs under 10% of gross income.
Does paying extra on a car loan save money?
Yes, because each extra dollar cuts the balance that interest is charged on. The savings are largest early on. In the default loan, the first full year of payments is about 24% interest, while the final year is under 3%.
Check the contract for a prepayment penalty first. Experian notes these typically run about 2% of the loan amount, which can cancel out the savings on a small extra payment.