Use this auto loan calculator to estimate your monthly car payment, including sales tax, title and registration fees, your down payment and any trade-in. Compare loan terms side by side and see whether you’d owe more on the loan than the car is worth.
Estimated monthly payment
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Loan balance vs. car value
Compare loan terms
| Term | Monthly payment | Total interest | Owe more than it's worth |
|---|
Estimates only. Your rate depends on your credit, the lender and the vehicle. Sales tax rules, fees and trade-in tax credits vary by state, and actual depreciation varies by make and model.
How your car payment is calculated
The amount you finance is the vehicle price, plus sales tax and fees (if you add them to the loan), minus your down payment and your trade-in equity. Your monthly payment then uses the standard loan formula based on that amount, your APR and the number of months.
Example: a $35,000 car with $5,000 down, 7.5% sales tax ($2,625) and $1,200 in title, registration and dealer fees means financing $33,825. At 6.4% APR for 60 months, the payment is $660.24 a month, and you’d pay $5,790 in interest. Including tax, fees and interest, the car costs $44,615 in total.
Average car loan rates and terms
According to Experian, the average rate on a new-car loan was 6.35% in the second quarter of 2026, and the average used-car rate was 11.19%. The average new-car buyer financed $43,610 with a monthly payment of $765. Rates depend heavily on your credit score: on the example loan, an 11.2% rate raises the payment to $738.82 and nearly doubles the interest to $10,504.
Getting a pre-approved car loan from a bank or credit union before you visit the dealer gives you a rate to compare against dealer financing. It also helps to check your credit report for errors first.
Choosing a loan term: 36 to 84 months
Longer loans are increasingly common. In early 2026 the average new-car loan ran about 69 months, and about 36% of new-car loans were longer than six years. A longer term lowers the payment but costs more interest and keeps you owing more than the car is worth for longer. Using the same $33,825 loan at 6.4%:
| Term | Monthly payment | Total interest | Owe more than it’s worth |
|---|---|---|---|
| 36 months | $1,035.16 | $3,441 | Never |
| 48 months | $800.60 | $4,604 | Never |
| 60 months | $660.24 | $5,790 | Never |
| 72 months | $566.99 | $6,998 | Months 6 to 21 |
| 84 months | $500.65 | $8,229 | Months 4 to 35 |
Stretching from 60 to 84 months saves about $160 a month but adds $2,439 in interest. A common guideline is to keep the term to 60 months or less if the payment still fits your budget.
Owing more than your car is worth
New cars lose value fast: often about 20% in the first year and around 55% over five years, according to Kelley Blue Book. If your loan balance falls more slowly than the car’s value, you’re “upside down” or “underwater.” That’s a problem if the car is totaled or you need to sell it, because the insurance payout or sale price may not cover the loan.
The chart in the calculator compares your balance with the car’s estimated value. With no down payment, the example loan is underwater from day one and stays that way for 25 months on a 60-month term. A down payment of 10% to 20%, a shorter loan, or paying taxes and fees in cash all help. Gap insurance covers the difference if the car is totaled while you’re underwater. If you’re already upside down, see our guide to refinancing an underwater car loan.
How a trade-in affects your loan
Your trade-in equity is its value minus what you still owe on it. Positive equity works like a down payment. In most states, sales tax is charged only on the price minus the trade-in value, which saves you money too. With a $10,000 trade-in that has $4,000 left on the loan, the example loan drops to $27,075, the payment to $528.49, and sales tax falls by $750.
If you owe more on your trade-in than it’s worth, the dealer adds that negative equity to your new loan. Trading in a car worth $8,000 with $12,000 still owed adds $4,000 to the new loan, raising the payment to $726.61 and leaving you underwater for the first 22 months.
Sales tax and fees
The average combined state and local sales tax rate was 7.53% in mid-2026, according to the Tax Foundation, ranging from 0% in states like Delaware, Montana, New Hampshire and Oregon to over 9% in Louisiana, Tennessee and Washington. Title, registration and dealer documentation fees vary by state and dealer. Ask for an out-the-door price that includes everything before you agree to a deal.
Tips to lower your car payment
- Negotiate the price, not the payment. Dealers can hit any monthly payment by stretching the term.
- Shop your rate. Compare a credit union or bank offer, such as Capital One Auto Navigator, with dealer financing.
- Put more down. Raising the down payment from $5,000 to $7,000 lowers the example payment to $621.20.
- Consider a lightly used car, which has already taken the biggest depreciation hit.
- Improve your credit before buying. See how to build credit.
Frequently asked questions
What is the monthly payment on a $35,000 car?
With $5,000 down, 7.5% sales tax and $1,200 in fees added to the loan, you’d finance $33,825. At 6.4% APR the payment is about $660 a month over 60 months or $567 over 72 months.
What is a good interest rate for a car loan?
It depends on your credit and whether the car is new or used. Experian reported average rates of 6.35% for new cars and 11.19% for used cars in the second quarter of 2026. Borrowers with excellent credit often qualify for lower rates.
Is a 72- or 84-month car loan a good idea?
Longer loans lower the monthly payment but cost more interest and make it more likely you’ll owe more than the car is worth. On a $33,825 loan at 6.4%, an 84-month term costs $2,439 more in interest than a 60-month term.
Is sales tax included in a car loan?
It can be. Many buyers add sales tax, title and registration fees to the loan, which raises the amount financed and the interest paid. Paying them in cash keeps the loan smaller.
How much should I put down on a car?
A down payment of 10% to 20% of the price lowers your payment, reduces interest and helps you avoid owing more than the car is worth as it depreciates.
This calculator provides estimates for educational purposes only and is not financial advice. Sources: Experian Q2 2026 automotive finance data; Experian Q1 2026 loan terms; Tax Foundation 2026 midyear sales tax rates; Kelley Blue Book on car depreciation.