Auto Loan Calculator
On a $35,000 vehicle with $3,500 down, 6% sales tax, $500 in fees and a 7.5% APR, you finance $34,100 and pay $683.29 a month over 5 years, with $6,898 in interest.
Your car loan
Everything stays in your browser. The example is a $35,000 vehicle; replace it with your own numbers.
Reference: the Fed’s G.19 release of October 7, 2026 shows new-car loans at commercial banks averaging 7.54% (60 months) and 7.17% (72 months) in August 2026.
Compare with another term
Same vehicle and same amount financed. Clear the term to hide the comparison.
Your result
You would finance $34,100 and pay $683.29 a month for 5 years, with $6,898 in interest.
- Monthly payment
- $683.29
- Amount financed
- $34,100
- Includes $2,100 tax and $500 fees
- Total interest
- $6,898
- Total cost
- $44,498
- Down payment + trade-in + all loan payments
5 years vs 6 years
60 months at 7.5%
$683.29 / month
Interest: $6,898
Paid to the lender: $40,998
72 months at 7.5%
$589.59 / month
Interest: $8,351
Paid to the lender: $42,451
The 72-month loan costs $93.70 less a month and $1,453 more in interest.
Amortization schedule
| Year | Interest | Principal | Balance at year end |
|---|---|---|---|
| 1 | $2,359 | $5,840 | $28,260 |
| 2 | $1,906 | $6,293 | $21,966 |
| 3 | $1,418 | $6,782 | $15,184 |
| 4 | $891 | $7,309 | $7,876 |
| 5 | $324 | $7,876 | $0 |
Average new-car loan rates (Federal Reserve)
| Period | 60 months | 72 months |
|---|---|---|
| August 2026 | 7.54% | 7.17% |
| Q2 2026 | 7.14% | 6.97% |
| Q1 2026 | 7.53% | 7.53% |
Source: Federal Reserve G.19 Consumer Credit, release of October 7, 2026, read 2026-10-27. Not seasonally adjusted APRs. The August 2026 column is the latest published; the Fed marks the most recent period as preliminary. The G.19 covers new-car loans only: it does not publish a used-car rate, so none is shown here.
How it is calculated
Amount financed is the vehicle price plus sales tax plus fees, minus your down payment and trade-in. Sales tax is charged on the full price, or on the price minus the trade-in if you tick the box, because states differ. Fees are financed with the loan. The monthly rate is the APR divided by 12, and the payment comes from the standard loan formula: amount financed times the monthly rate, divided by one minus (1 + monthly rate) to the power of minus the number of months. Each month, interest is the balance times the monthly rate and the rest of the payment reduces the balance. Total interest is the sum of the interest column, and total cost adds your down payment and trade-in to everything paid on the loan. Real lenders round payments to the cent and may compute interest by days, so your contract can differ by a few dollars. The CFPB describes shopping for an auto loan and comparing rates and terms in its auto loan guide.
- Federal Reserve G.19 Consumer Credit, Terms of Credit (release of October 7, 2026): “simple unweighted averages of each bank’s most common rate”. Read 2026-10-27.
- Auto loans (CFPB): “avoid surprises that can cost you money”. Read 2026-10-27.
Auto loans: common questions
How is a car payment calculated?
The lender takes the amount financed (price plus sales tax and fees, minus your down payment and trade-in) and spreads it over the term at your APR with the standard amortization formula. In the example above that is $34,100 over 60 months at 7.5%, or $683.29 a month.
Is a 72-month loan worse than a 60-month loan?
It costs more overall. With the same 7.5% APR, stretching the example from 60 to 72 months lowers the payment from $683.29 to $589.59 but raises total interest from $6,898 to $8,351. The rate can differ by term: in the Fed's August 2026 figures the 72-month average was 7.17% against 7.54% for 60 months. Enter each quote in the second-term field to compare.
How much does a bigger down payment save?
Adding $5,000 to the down payment in the example cuts the amount financed to $29,100, the payment to $583.10 and the interest to $5,886, which is $1,011 less.
Does my trade-in lower the sales tax?
It depends on your state. In some states the tax applies to the price minus the trade-in, in others to the full price. With a $10,000 trade-in in the example, the sales tax is $1,500 if your state taxes the net price and $2,100 if it does not. Check your state revenue department or your dealer, then use the checkbox above.
What APR should I enter?
Use the APR on your loan offer, because it depends on your credit, the vehicle, the term and the lender. For context, the Federal Reserve's G.19 release of October 7, 2026 reports new-car loans at commercial banks averaging 7.54% for 60 months and 7.17% for 72 months in August 2026. Those are bank averages, not an offer for you. G.19 has no used-car figure, so this page quotes none.
Does the calculator include insurance, add-ons or a loan origination fee?
No. It covers price, tax, fees you enter, down payment, trade-in and interest. Insurance, extended warranties, gap coverage and lender-specific charges are not included. If a dealer rolls an add-on into the loan, add its cost to the fees field to see its effect.
Compare the cost of the loan with what the same money could do elsewhere: try the compound interest calculator or the extra payment calculator.
This is an educational tool, not financial or lending advice. It does not know your credit, your lender’s terms or your state’s tax rules.