Auto loan calculator: amount financed, monthly payment and total cost (2026)
Edited by Moe Ameen · Published
An auto loan's amount financed is the car's price plus taxes and fees, minus your down payment and trade-in. A $35,000 car with $4,000 down, a $5,000 trade-in, 7% sales tax on the difference and $800 in fees leaves $28,900 to borrow. At 7.5% APR over 60 months that's $579.10 a month and $5,845.80 in interest. Over 72 months the payment drops to $499.68, but interest climbs to $7,077.27.
Key takeaways
- Amount financed = price + add-ons + taxes and fees − down payment − trade-in, the way the CFPB's worksheet adds it up [2].
- Monthly payment = amount financed × r(1+r)^n ÷ ((1+r)^n − 1), with r = APR ÷ 12.
- A longer term lowers the payment and raises the total cost [2].
- Total cost counts your down payment and trade-in as well as every loan payment [2][3].
- Banks' average 60-month new car loan rate was 7.54% in August 2026, per the Federal Reserve [1].
How do you work out how much to finance on a car?
Add the price, any add-ons, taxes and fees, then subtract the down payment and the trade-in value. What's left is the amount you borrow.
That's the order the CFPB's auto loan shopping sheet uses [2]. Add-ons such as extended warranties are optional and raise the total cost [2]. Taxes, title and registration fees set by your state and local government can't be negotiated, while the CFPB marks the price, add-ons, dealer fees, rate, term and trade-in value as things you can negotiate [2][4].
| Line | Amount |
|---|---|
| Vehicle price | $35,000 |
| Sales tax, 7% of $30,000 (price minus trade-in) | + $2,100 |
| Fees | + $800 |
| Down payment | − $4,000 |
| Trade-in value | − $5,000 |
| Amount financed | $28,900 |
How is a car loan payment calculated?
Use the amortization formula: amount financed × r(1+r)^n ÷ ((1+r)^n − 1), where r is the APR ÷ 12 and n is the number of months.
It's the same formula as our personal loan calculator. The CFPB's shopping sheet notes that a longer term increases the total cost [2]. Here's how that plays out on the $28,900 above.
| Term | Monthly payment | Total interest | Total cost with $9,000 down and trade-in |
|---|---|---|---|
| 48 months | $698.77 | $4,640.97 | $42,540.97 |
| 60 months | $579.10 | $5,845.80 | $43,745.80 |
| 72 months | $499.68 | $7,077.27 | $44,977.27 |
What is the total cost of a car loan?
Every loan payment plus your down payment and trade-in. On the 60-month example, that's $43,745.80 for a $35,000 car.
The CFPB defines total cost as what you'll pay for the vehicle, including principal, interest and any down payment or trade-in [3]. On the Truth in Lending disclosure you'll also see the amount financed (what you're borrowing), the finance charge (interest and certain fees over the life of the loan) and the total of payments [5]. The APR on that form includes the interest rate and mandatory fees, so it shows more of the loan's cost than the rate alone [5][6].
Does a trade-in lower the sales tax on a car?
It depends on your state. Some tax only the price minus the trade-in; others tax the full price. The calculator lets you pick either.
In the example, taxing the full $35,000 instead of $30,000 adds $350 in tax. The amount financed becomes $29,250 and the 60-month payment $586.11. Your state's tax or revenue department publishes its rule, and the dealer's buyer's order shows the tax actually charged. For everything else that shapes the loan, see how auto loans work.
What is the average auto loan interest rate?
At commercial banks, the average 60-month new car loan rate was 7.54% in August 2026, and 7.17% for 72 months, per the Federal Reserve.
| Period | 60-month | 72-month |
|---|---|---|
| 2024 | 8.16% | 8.29% |
| 2025 | 7.65% | 7.80% |
| Q2 2026 | 7.14% | 6.97% |
| August 2026 | 7.54% | 7.17% |
The same release shows finance companies' new car loans averaging 6.3% in June 2026, over 67 months, on an average of $41,705 financed [1]. Bank rates are APRs under Regulation Z, averaged across each bank's most common rate [1]. They're averages, not a rate offered to you. Put the APR from your own quote into the calculator.
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Enter a price, an APR from 0 to 100% and a term of 1 to 120 months. Blank boxes count as zero.
Estimates only. Your state decides whether a trade-in lowers the sales tax, and the dealer's contract sets the real numbers. The grey example figures are illustrations, not rates offered to you. This runs in your browser, and nothing you type is sent anywhere or saved.
We ran the CFPB's own shopping sheet example through this calculator [2]: a $20,000 car, $300 of add-ons and $100 of negotiable fees (enter $400 as fees), $1,400 of taxes and title (7% on the full price), $3,000 down and a $3,000 trade-in, at 3.5% for 48 months. It matches every line: $15,800 financed, $353.22 a month, $16,955 in payments, a total cost of $22,955 and $1,155 in interest.
Is this right for you?
Best for
- Comparing loan terms on a car you've picked, by payment, interest and total cost.
- Seeing how a bigger down payment or trade-in changes what you borrow.
Not ideal for
- Leases, which are priced differently from loans.
- Trading in a car you still owe money on. Subtract what you owe from the trade-in value first.
Frequently asked questions
How do I calculate a car payment?
Work out the amount financed, then use amount × r(1+r)^n ÷ ((1+r)^n − 1), with r = APR ÷ 12. $28,900 at 7.5% for 60 months is $579.10 a month.
Is sales tax included in an auto loan?
It can be. The CFPB's shopping sheet adds taxes and fees to the price before subtracting your down payment and trade-in [2]. If you pay them up front instead, you borrow less.
Is a 72-month car loan a bad idea?
It lowers the payment but raises the total cost [2]. On $28,900 at 7.5%, 72 months costs $1,231.47 more in interest than 60 months.
What can I negotiate on a car loan?
The CFPB lists the price, add-ons, dealer fees, rate, term and trade-in value, but not taxes, title or registration fees set by government [2][4].
What is the average car loan rate?
The Federal Reserve's average for 60-month new car loans at commercial banks was 7.54% in August 2026 [1]. That's an average, not a quote.
Is this calculator private?
Yes. It runs in your browser, and nothing you type is sent anywhere or saved.
How we know this
On November 2, 2026 we read the Federal Reserve's G.19 consumer credit release of October 7, 2026, the CFPB's auto loan shopping sheet and auto loan key terms, its answers on what you can negotiate and on the Truth in Lending disclosure for an auto loan, and its answer on loan interest rate vs APR. Example figures are our own arithmetic. We checked the calculator against the CFPB shopping sheet's worked example and it matches every line.
- G.19 Consumer Credit, release of October 7, 2026, Federal Reserve Board. Checked November 2, 2026.
- CFPB auto loan shopping sheet: Comparing auto loans, Consumer Financial Protection Bureau. Checked November 2, 2026.
- Auto loans key terms, Consumer Financial Protection Bureau. Checked November 2, 2026.
- What things can I negotiate when shopping for a car or auto loan?, Consumer Financial Protection Bureau. Checked November 2, 2026.
- What is a Truth-in-Lending disclosure for an auto loan?, Consumer Financial Protection Bureau. Checked November 2, 2026.
- What is the difference between a loan interest rate and the APR?, Consumer Financial Protection Bureau. Checked November 2, 2026.