Auto Loan Calculator
New & Used Vehicles · 2026
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Enter your vehicle price and loan details to calculate your monthly payment.
Monthly Payment
$0
for 60 months
Vehicle price$0
Sales tax$0
Down payment$0
Trade-in value$0
Loan amount$0
Total interest paid$0
Total cost$0
Principal0%
Interest0%
What a Car Loan Really Costs
A $30,000 car loan at 7% APR costs $594 a month for 60 months, with $5,642 in total interest. Stretch it to 84 months and the payment falls to $453, but interest climbs to $8,034. Enter the price, down payment, trade-in, rate and term above to see your payment, total cost and a month-by-month amortization schedule.
Every figure below uses the same amortization formula as the calculator. Rates are fixed, and taxes, title and dealer fees are left out unless you roll them into the loan.
Car Payment by Loan Amount and Term
Monthly payment at 7% APR, close to the 7.14% that commercial banks charged on 60-month new car loans in the second quarter of 2026 (Federal Reserve G.19).
| Amount financed | 36 mo | 48 mo | 60 mo | 72 mo | 84 mo |
|---|---|---|---|---|---|
| $20,000 | $618 | $479 | $396 | $341 | $302 |
| $30,000 | $926 | $718 | $594 | $511 | $453 |
| $40,000 | ,235 | $958 | $792 | $682 | $604 |
| $50,000 | ,544 | ,197 | $990 | $852 | $755 |
How the Term Changes Total Interest
A $40,000 loan at 7%. Finance companies lent an average of $41,705 for 67 months on new cars in the second quarter of 2026, so this is a typical loan today.
| Term | Monthly payment | Total interest |
|---|---|---|
| 36 months | ,235 | $4,463 |
| 48 months | $958 | $5,977 |
| 60 months | $792 | $7,523 |
| 72 months | $682 | $9,101 |
| 84 months | $604 | 0,711 |
Going from 60 to 84 months lowers the payment by 88 but adds $3,188 of interest, and you stay upside down on the car for longer because it loses value faster than a slow loan is paid down.
The Car Loan Interest Tax Deduction (2025 to 2028)
The One Big Beautiful Bill Act created a federal deduction for interest on a loan used to buy a new car for personal use. You can deduct up to 0,000 of interest a year for tax years 2025 through 2028, whether or not you itemize. It is claimed on Schedule 1-A of Form 1040.
Which loans qualify
- The loan was taken out after 31 December 2024 to buy the vehicle.
- The vehicle is new, meaning its original use starts with you. Used cars do not qualify.
- Final assembly took place in the United States.
- It is a car, minivan, van, SUV, pickup truck or motorcycle with a gross vehicle weight rating under 14,000 pounds.
- It is for personal use, not business. Lease payments do not qualify.
- You must put the vehicle identification number (VIN) on your return each year you claim it.
Income phase-out
The deduction shrinks by $200 for each ,000 (or part of ,000) of modified adjusted gross income above 00,000 for single filers or $200,000 for joint filers. Example: a $40,000 loan at 7% over 60 months charges $2,581 of interest in the first year.
| MAGI (single) | MAGI (joint) | Reduction | Deduction on $2,581 of interest |
|---|---|---|---|
| 00,000 or less | $200,000 or less | $0 | $2,581 |
| 05,000 | $205,000 | ,000 | ,581 |
| 10,000 | $210,000 | $2,000 | $581 |
| 13,000 | $213,000 | $2,600 | $0 |
| 50,000 | $250,000 | 0,000 | $0 at any interest level |
Below the phase-out, the full $2,581 deduction is worth $568 to someone in the 22% bracket and $310 in the 12% bracket. The calculator's amortization schedule shows how much interest you will pay in each year.
Method and sources. Payments use M = P × r(1+r)n ÷ ((1+r)n − 1), with r the monthly rate and n the number of months; every table value was computed with that formula. Average rates, loan size and term: Federal Reserve statistical release G.19, Consumer Credit, terms of credit for Q2 2026 (published 8 September 2026). Car loan interest deduction: IRS guidance on the One Big Beautiful Bill Act provisions for individuals and IRS instructions for Schedule 1-A. Estimates only, not a loan offer or tax advice.
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Auto Loan Questions
The Federal Reserve put the average rate on a 60-month new car loan at commercial banks at 7.14% in the second quarter of 2026 (6.97% for 72 months), and finance companies averaged 6.3%. Used cars and lower credit scores cost more, so treat anything near those averages on a new car as a fair rate. Credit unions typically offer 1 to 2% lower rates than bank or dealership financing. Always get pre-approved from your credit union or bank before visiting the dealer: it gives you a baseline for negotiation and prevents the dealer from rolling profit into the rate.
The standard recommendation is 20% down on new cars and 10% on used cars. A larger down payment lowers your monthly payment, reduces total interest, and helps prevent being underwater (owing more than the car is worth). New cars lose 15 to 25% of value in the first year, so putting less than 10% down creates negative equity almost immediately. If 20% is not possible, consider gap insurance to cover the difference if the car is totaled.
Longer terms lower the monthly payment but significantly increase total interest. A $30,000 loan at 7%: 60 months costs $5,642 in interest, 72 months costs $6,826 and 84 months costs $8,034. You also stay underwater on the loan longer as the car depreciates faster than you pay it down. Most financial advisors recommend keeping auto loans at 60 months or less. If you need a 72+ month term to afford the payment, the car is likely outside your budget.
Always get pre-approved from your bank or credit union before visiting the dealer. Dealers can mark up the interest rate (the "dealer reserve") and keep the difference as profit: often 1 to 2% without telling you. With a pre-approval letter in hand, you can negotiate purely on price and use your financing, or accept dealer financing only if it is genuinely better. 0% or low promotional rates from manufacturers are legitimate and worth taking if your credit qualifies and no other costs are rolled in.
APR (Annual Percentage Rate) is the yearly cost of your loan expressed as a percentage. For auto loans, APR and the interest rate are usually identical, unlike mortgages where APR includes closing costs. The monthly payment is calculated using the amortization formula: payment = principal × [r(1+r)^n / ((1+r)^n − 1)], where r is the monthly rate (APR / 12) and n is the number of months. Even a 1% APR difference on a $30,000 loan over 60 months changes your payment by about $14 a month and total interest by about $855.
A trade-in reduces the amount you need to finance, lowering both your monthly payment and total interest. In most states, trading in a car also reduces the sales tax you pay on the new vehicle: you only pay tax on the difference between the new car price and the trade-in value. Get your trade-in appraised independently (Carmax, KBB Instant Cash Offer, Carvana) before going to the dealer so you know its true value and can negotiate accordingly.
GAP insurance (Guaranteed Asset Protection) covers the difference between what you owe on your loan and what your car is worth if it is totaled or stolen. It is most useful when you put less than 20% down, finance for 72+ months, or roll negative equity from a previous loan into the new one. Dealers typically charge $500 to $1,000 for GAP. Many auto insurers offer it for $20 to $40/year added to your policy. Always buy from your insurer rather than the dealer.
Yes, and doing so saves money on interest. Most auto loans have no prepayment penalty. If you make one extra payment per year on a 60-month loan, you pay it off roughly 4 to 5 months early. Paying $100 extra per month on a $25,000 loan at 6.5% for 60 months saves about $865 in interest and cuts 11 months from the term. Always confirm the extra payment is applied to principal, not the next month’s payment, by specifying this when making the payment.
Leasing has lower monthly payments and lets you drive a new car every few years, but you build no equity and face mileage limits (typically 10,000 to 15,000 miles/year). Buying costs more monthly but the car is yours after payoff and total lifetime cost is typically lower if you keep it 7+ years. Leasing makes financial sense if you need a new car every 3 years for business purposes, value warranty coverage, and stay within mileage limits. For most personal buyers who drive a car past the loan payoff, buying and keeping is the better long-term value.
Credit score is the single biggest factor in your auto loan rate. Typical 2026 rate ranges by FICO score: 720+, 4 to 6% · 690 to 719, 5.5 to 8% · 660 to 689, 7 to 10% · 620 to 659, 10 to 14% · Below 620, 14%+ or denial. A 100-point score difference can mean a 4 to 6% rate difference, costing $3,000 to $5,000 more in interest on a typical loan. If your score is below 680, consider waiting 6 to 12 months to improve it before taking a large auto loan.
Yes, for many buyers of new cars. For tax years 2025 through 2028 you can deduct up to $10,000 a year of interest on a loan taken out after 2024 to buy a new, US-assembled car, SUV, pickup, van or motorcycle for personal use. The deduction is available whether or not you itemize, and it phases out between $100,000 and $150,000 of modified AGI for single filers ($200,000 to $250,000 for joint filers). Used cars, leases and business vehicles do not qualify.
In the second quarter of 2026, finance companies financed an average of $41,705 over 67 months at 6.3% on new cars, according to the Federal Reserve. At 7% for 60 months, a $41,705 loan costs about $826 a month. Borrowing less or choosing 48 to 60 months keeps total interest far lower than a 72 or 84-month loan.