Calculate your monthly car payment including sales tax, trade-in value, and down payment. Compare loan terms to find the best deal.
60-month new car loans — updated April 2026
| Lender | Rate | APR | Est. Payment | Action |
|---|---|---|---|---|
Credit Union AutoBest Rate | 4.990% | 5.150% | $377/mo | Check Rate |
Online Auto Loans | 5.490% | 5.650% | $382/mo | Check Rate |
Auto Finance Direct | 5.990% | 6.250% | $387/mo | Check Rate |
National Bank Auto | 6.490% | 6.750% | $392/mo | Check Rate |
Dealer Finance | 6.990% | 7.250% | $397/mo | Check Rate |
Rates shown are for illustrative purposes. Actual rates may vary based on credit score, loan amount, down payment, and market conditions. Contact lenders directly for personalized rate quotes.
The monthly payment is the number that matters most when buying a car, but the loan term dramatically affects total cost. A 72-month loan lowers your payment but costs significantly more in interest than a 48-month loan.
The Auto Loan Payment Calculator computes monthly payments using the standard amortization formula for installment loans. The methodology calculates monthly payment based on the loan amount (vehicle price minus down payment and trade-in value, plus applicable sales tax), the annual interest rate converted to a monthly rate, and the loan term in months. Sales tax is typically calculated on the vehicle price before the trade-in value is subtracted, depending on state law. This calculator helps car buyers understand their true monthly commitment and compare financing offers from different lenders. It demonstrates how the total cost of a vehicle extends well beyond the sticker price when financing is involved. Understanding the amortization schedule helps borrowers see how much of each payment goes toward principal versus interest, which is useful for deciding whether to make extra payments. Real-world use cases include pre-purchase budgeting, comparing dealership financing vs. credit union loans, and evaluating the impact of different loan terms on total cost. Key limitations include not accounting for manufacturer incentives, dealer add-ons, registration fees, or gap insurance that are often bundled into the final loan amount.
Result: For a $35,000 car with $5,000 down at 5.5% APR for 6 years: Tax on $35,000 at 7%: $2,450. Amount financed: $32,450. Monthly payment: approximately $527. Total interest paid over 6 years: approximately $5,494. Total cost of the car: $42,944 vs $35,000 sticker price.
Auto loan payments are calculated using the standard amortization formula: Monthly Payment = (Principal × Monthly Rate) / (1 − (1 + Monthly Rate)^(−Term in Months)). Unlike mortgages, auto loans typically use simple interest calculated daily, which means paying early in the month reduces your total interest.
The loan term dramatically affects your total cost. A $35,000 car at 6% for 48 months costs about $822/month with $4,449 in total interest. The same car financed for 72 months drops the payment to $580/month but nearly doubles the total interest to $8,764. The lower payment is tempting, but it costs thousands more.
Auto loan rates in 2026 vary by credit score: borrowers with scores above 750 can expect rates around 5-6% for new cars, while those in the 600-650 range may face rates of 10-14%. Credit unions consistently offer the lowest rates, often 1-2% below national banks and dealership financing.
Dealership financing is rarely the best deal. Dealers often mark up the buy rate from lenders by 1-2% and pocket the difference. Always get pre-approved from your bank or credit union before visiting a dealership — this gives you a rate to negotiate against and prevents the dealer from dictating your financing terms.
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Results are estimates only and not financial advice. Calculator logic verified by Michael Chen, CFP®. Full disclaimer · Methodology