Car Payment Calculator
Put in the real numbers from the deal, not just the price. Tax, fees, your trade and the term change the payment more than most people expect. Nothing is stored or sent anywhere.
The deal
Defaults: Edmunds' average new-car price and a 7% APR, which is where the average new-car loan sat in October 2026. Change anything.
Your payment
What if… same deal, different term or rate
| Term | At your APR | 1 point lower | 1 point higher | Total interest at your APR |
|---|
The payment difference between terms looks small. The interest column is the number the dealer hopes you don't look at.
Payoff schedule first year, then yearly
| Payment | Principal | Interest | Balance |
|---|
Questions people ask
How is a car payment calculated?
Take the price, add sales tax and fees, subtract your down payment and trade-in to get the amount financed. The monthly payment is that amount spread over the term with interest: payment = L × r ÷ (1 − (1 + r)−n), where r is the APR divided by 12 and n is the number of months.
Does a longer loan term save money?
No. A longer term lowers the monthly payment, but you pay interest for more months, so the total cost goes up. The what-if table above shows exactly how much.
What APR should I expect right now?
In October 2026 the average new-car loan is near 7% APR and used-car loans run higher. Your credit score, the term and whether the automaker is subsidizing the rate move it a lot. Get a bank or credit union quote before you shop and compare it with the dealer's. Current Fed and Treasury rates are on Turner Finance.
Is sales tax charged on the trade-in?
In most states you pay tax only on the price minus the trade-in. A few tax the full price. Use the "Tax on" switch. Every state's rate, trade-in rule and doc fee cap is on the car sales tax by state page.
What about negative equity on my trade?
If you owe more than the trade is worth, the difference gets added to the new loan. Enter what you owe in "Owed on the trade" and the calculator rolls it in. The Trade-In Equity Estimator works it out from your payoff letter.