Auto Loan Calculator
Estimate your monthly car payment including trade-in value, down payment, sales tax, and dealer fees. Adjust the inputs to compare different financing scenarios.
Vehicle & Loan Details
Amount financed: $32,600
Estimated Monthly Payment
Cost Breakdown
Principal vs Interest
Compare Loan Terms
Want to see real auto loan rates from multiple lenders? Join the Loan.AI private beta.
Compare Real Rates→How to Use This Auto Loan Calculator
Our free auto loan calculator helps you estimate your monthly car payment by factoring in the vehicle price, your down payment, trade-in value, sales tax, and dealer fees. Enter your expected interest rate and loan term to see how much you'll pay each month and over the life of the loan.
Understanding Your Auto Loan
Down Paymentis the cash you pay upfront. A larger down payment reduces your loan amount, monthly payment, and total interest. Most experts recommend at least 20% down on a new car and 10% on a used car to avoid being "upside down" (owing more than the car is worth).
Trade-In Valueis what the dealer gives you for your current vehicle. This amount reduces the price you need to finance. Get quotes from multiple dealers and use tools like Kelley Blue Book or Edmunds to know your car's fair market value.
Sales Tax is applied in most states and can add thousands to your loan. Some states tax the full vehicle price, while others only tax the difference after trade-in. The national average is around 6%, but rates range from 0% (Oregon, Montana, Delaware, New Hampshire, Alaska) to over 10% in some jurisdictions.
Loan Termsignificantly impacts both your monthly payment and total cost. A 36-month loan has higher payments but you'll pay far less interest. A 72- or 84-month loan offers lower payments but can cost thousands more in interest — and you risk being upside down on the loan for years.
Tips for Getting the Best Auto Loan Rate
- Get pre-approved by your bank or credit union before visiting the dealership — this gives you negotiating leverage
- Compare offers from at least 3 lenders (banks, credit unions, and online lenders)
- Keep your loan term to 60 months or less to minimize interest and avoid negative equity
- A credit score above 720 typically qualifies you for the best rates (often 4-5% APR or lower)
- Negotiate the total vehicle price, not the monthly payment — dealers can extend terms to hit any monthly number while increasing total cost
- Consider certified pre-owned vehicles — they often come with manufacturer warranties at a significant discount
Current Auto Loan Rate Trends (April 2026)
As of April 2026, average new car loan rates range from 5.5%–7.5% for borrowers with good credit, while used car rates typically run 1-2 percentage points higher. Credit unions often offer rates 0.5%–1% below banks and online lenders. Rates depend on your credit score, loan term, and whether the vehicle is new or used.
Frequently Asked Questions
How much should I put down on a car?
Financial experts recommend 20% down on a new car and 10% on a used car. A larger down payment reduces your monthly payment, total interest, and risk of negative equity (owing more than the car is worth). Even an extra $1,000 down can save hundreds in interest.
What is a good interest rate for a car loan?
As of 2026, a good rate for a new car loan is around 5-6% APR for borrowers with credit scores above 720. For used cars, 6-8% is competitive. Rates below 4% are excellent and sometimes available through manufacturer promotional financing. Credit unions often offer the most competitive rates.
Should I choose a longer loan term for lower payments?
While longer terms (72-84 months) offer lower monthly payments, they significantly increase total interest paid. A $30,000 loan at 6.5% costs about $2,800 more in interest going from 60 to 72 months. Longer terms also increase your risk of negative equity. Try to keep your term at 60 months or less.
Is it better to finance through the dealer or my bank?
Get pre-approved by your bank or credit union first — this gives you a benchmark rate and negotiating leverage. Dealers sometimes offer promotional rates (like 0% APR on select models), but their standard rates are often higher than banks. Always compare both options.
How does my credit score affect my auto loan rate?
Credit score is the single biggest factor in your rate. Excellent credit (750+) might qualify you for 4-5% APR, while fair credit (630-689) might see 8-12%. Poor credit (below 630) can mean rates of 14-20% or higher. Improving your score by even 50 points before applying can save thousands over the loan.
Does my trade-in reduce sales tax?
In many states, yes. If you trade in a car worth $10,000 and buy one for $35,000, you only pay sales tax on $25,000 (the difference). However, this varies by state — some states tax the full purchase price regardless of trade-in. Check your state's specific rules.