Auto Loan & Car Payment Calculator: Estimate Your Monthly Payment
Estimate your monthly car payment and the total interest you will pay. Enter the vehicle price, down payment, trade-in, APR, and loan term to see your payment, total cost, and a side-by-side term comparison.
Quick Answer
In 2026 the average new-car payment is about $770 a month and the average used-car payment about $531. Average rates run near 6.4% for new loans and 11.3% for used. Your own payment depends on the amount financed, your APR, and the term. Enter your numbers below to see your monthly payment and total interest.
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Loan term comparison
| Term | Monthly payment | Total interest |
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How to read this estimate
This private insight uses fixed rules on this page. It does not call an AI service, predict outcomes, or replace professional advice.
In this guide
How the Car Payment Formula Works
An auto loan is an amortizing loan. Each month you pay the same amount, but the split changes: the interest part is largest in the first month and shrinks as the balance falls.
The formula in plain words
Monthly payment = P x [r(1+r)^n] / [(1+r)^n - 1], where P is the amount financed, r is the monthly rate (APR divided by 12), and n is the number of months.
The amount financed
You rarely borrow the full sticker price. The amount financed is the price minus your down payment and trade-in, plus sales tax, fees, and any negative equity rolled in from your old car. This calculator uses that number, so your estimate reflects the loan you would actually take.
APR vs. Interest Rate
The interest rate is the cost of borrowing the money. The APR (annual percentage rate) also folds in most lender fees, so APR is the fairer number for comparing loans. Use APR when you compare offers. A one-point lower APR on a $30,000, 60-month loan saves roughly $830 in total interest.
Your rate mostly comes from your credit score and the lender. Lenders group borrowers into tiers. According to Experian data, the average new-car APR was about 4.7% for the top tier and about 9.6% for the near-prime tier in late 2025, with used-car rates about three points higher at every tier.[1]
Down Payment and Trade-In
A larger down payment shrinks the amount you finance, which cuts both your monthly payment and your total interest. It also protects you from negative equity, which is owing more than the car is worth.
Your trade-in works the same way, but watch the balance. If you still owe more on your trade-in than it is worth, the difference (negative equity) rolls into the new loan. The calculator adds that difference automatically and flags it in your results.
Choosing a Loan Term
Longer terms lower the monthly payment but raise total interest, sometimes sharply. On a $30,000 loan at 7% APR, a 60-month loan costs about $5,642 in total interest. The same loan at 84 months costs about $8,034. You pay almost $2,400 more for the longer schedule.[3]
Most new-car buyers now take about a 69-month term, and many go longer.[1] The sweet spot for many buyers is the shortest term whose payment still fits the budget, because shorter terms cost far less overall.
Auto Loan Numbers in 2026
These are the latest national averages from Experian's State of the Automotive Finance Market and Federal Reserve data.[1][3]
| Measure | New vehicle | Used vehicle |
|---|---|---|
| Average loan amount | $43,582 | $27,528 |
| Average monthly payment | $767 | $537 |
| Average APR | 6.37% | 11.26% |
| Average loan term | 68.9 months | 67.7 months |
Q4 2025 Experian data, the most recent full quarterly release. Rates change often, so get a current quote before deciding.
Three Real Payment Examples
These use the same formula as the calculator. They are planning examples, not offers.
New-car buyer
A $38,000 new car with $7,600 down, a $5,000 trade-in, 6% tax, $500 in fees, and a 7% APR for 60 months. Amount financed: $27,880. Monthly payment: about $552, with $5,243 in total interest.
Used-car buyer
A $25,000 used car with $4,000 down, no trade-in, 6% tax, $400 in fees, and an 11.3% APR for 60 months. Amount financed: $22,900. Monthly payment: about $501, with $7,180 in total interest.
Rolling negative equity
A $30,000 car with $3,000 down and a trade-in worth $8,000 that still has $10,500 owed. The $2,500 shortfall rolls into the new loan. At 8% APR for 72 months. Monthly payment: about $407, with $6,095 in total interest.
Limitations and What This Tool Does Not Cover
- This is a planning estimate, not a loan offer or a quote. Your real rate and terms depend on your credit, the lender, and the vehicle.
- It models a fixed-rate, simple amortizing loan. Leases, balloon loans, and variable-rate loans work differently.
- It does not include auto insurance, fuel, maintenance, annual registration renewals, or property taxes on the vehicle.
- It does not include dealer add-ons such as extended warranties or GAP insurance unless you enter them in the fees field.
- Sales tax is estimated on price minus trade-in. Some states tax the full price or add local taxes, so your number may differ.
- It does not assess affordability beyond the optional income check, and it is not financial advice.
See the Sources and Methodology section for how every figure was chosen.
How This Calculator Fits Your Other Tools
Each tool below answers a different question, so they do not overlap:
- This page: your monthly payment and total cost for an auto loan.
- Loan Calculator: payments for any fixed-rate loan, not just cars.
- Personal Loan Calculator: unsecured personal loans for debt consolidation or large purchases.
- Mortgage Payment Calculator: monthly principal and interest on a home loan.
- Car Wrap Price Calculator: the one-time cost to wrap a vehicle, a different car expense.
- Commute Cost Calculator: your recurring driving costs after you own the car.
Browse the full loan calculators hub for more borrowing tools.
Frequently Asked Questions
How much is the average car payment in 2026?
The average new-car payment is about $770 a month and the average used-car payment about $531, according to Experian's Q1 2026 data. The average new-car loan is about $43,925 over 69 months at about 6.4% APR.[2]
What is a good auto loan rate in 2026?
It depends on credit. In Experian's Q4 2025 data, the top credit tier averaged about 4.7% APR on new cars and 7.7% on used. Prime borrowers averaged about 6.3% new and 10.0% used, and near-prime about 9.6% new and 14.5% used.[1]
Should I finance for 60 or 72 months?
Shorter terms cost less overall. On a $30,000 loan at 7% APR, 60 months runs about $594 a month with $5,642 in total interest. At 72 months the payment drops to about $511 but interest rises to $6,826. Choose the shortest term you can afford.[3]
How does a bigger down payment help?
It lowers the amount financed, which lowers both your payment and your total interest. A 20% down payment also helps you avoid negative equity if the car loses value faster than you pay it down.
What does it mean to be upside down on a car loan?
It means you owe more on the loan than the car is worth. This often happens with long terms, small down payments, or trading in before the old loan is paid off. The shortfall, called negative equity, gets added to your next loan.
Does this calculator include tax and fees?
Yes. It adds your sales tax, title, registration, and dealer fees to the amount financed. You can set each to zero if you are only pricing the loan itself. Actual rates still depend on your credit and the lender.
Sources and Methodology
Methodology
This tool uses the standard amortizing payment formula M = P x [r(1+r)^n] / [(1+r)^n - 1], where r is the APR divided by 12 and n is the term in months. The amount financed is price minus down payment and trade-in, plus sales tax on (price minus trade-in), plus fees, plus any negative equity. Total interest is the sum of all payments minus the amount financed. Everything runs in your browser; nothing you type is sent to a server or stored.
Sources
- Experian. "State of the Automotive Finance Market," Q4 2025 (average loan amounts, payments, APRs, and terms). experianplc.com; Experian, "What's the Average Car Loan Length?" experian.com.
- Experian. State of the Automotive Finance Market, Q1 2026 (newest averages; refinance savings). experianplc.com.
- Federal Reserve Board. Consumer Credit (G.19), finance rates on new auto loans at commercial banks. federalreserve.gov.
- Consumer Financial Protection Bureau. Auto loans (understand APR and shop around). consumerfinance.gov.
- Car and Driver. "The Average New Car Payment Is Up to Nearly $750 a Month" (Experian Q3 2025 summary). caranddriver.com.
Evidence note: rates and averages change monthly. National averages are a starting point, not a promise. Where sources differ slightly by quarter, we labeled the quarter in the text.
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Creator
Shakeel Muzaffar is the Founder and Editor-in-Chief of MultiCalculators.com, bringing over 15 years of experience in digital publishing, product strategy, and online tool development. He leads the platform's editorial vision, ensuring every calculator meets strict standards for accuracy, usability, and real-world value. Shakeel personally oversees content quality, formula verification workflows, and the platform's commitment to publishing tools that are genuinely useful for students, professionals, and everyday users worldwide.
Areas of Expertise: Editorial Leadership, Digital Publishing, Product Strategy, Online Calculators, Web Standards
