Car Loan Payment Calculator

The calculator uses the standard amortization (PMT) formula used by every US auto lender: PMT = P x r / (1 - (1 + r)^-n), where P is the loan amount, r is the monthly rate (APR / 12 / 100), and n is the number of monthly payments. A $30,000 loan at 6% APR over 60 months works out to about $580 per month, $34,799 in total payments, and $4,799 in interest. If you enter a 0% APR (a manufacturer special), the formula degenerates and the calculator falls back to equal-principal amortization (loan / months).

The calculator subtracts the down payment and trade-in, then adds tax and fees. Its sales-tax calculation assumes the full trade-in value reduces the taxable price. State and local rules vary, and entering zero trade-in would also overstate the amount financed rather than only changing tax. Calculate the correct tax separately when your jurisdiction does not match the assumption.

There is no single 2026 rate. APR depends on the application date, credit file, term, vehicle, loan-to-value ratio, lender, and incentives. Use actual preapprovals and dealer disclosures as inputs, then compare the same term and amount financed. Do not treat a broad credit-tier average as an offer you should receive.

A shorter term generally costs less in interest but requires a higher payment. On a $30,000 loan at 7 percent APR, payments are about $926 for 36 months, $594 for 60 months, and $453 for 84 months. Total interest is about $3,347, $5,642, and $8,034, respectively. Choose a payment that fits the budget without using a long term to hide an unaffordable purchase price.

Each month's payment splits into principal (which lowers the loan balance) and interest (which compensates the lender for the unpaid balance that month). Early in the loan most of the payment is interest, because the balance is still high; by month 12 of a 60-month, 6% APR loan the principal share has already grown from about 74% to 78%. The Balance column shows what you would owe if you sold or paid off the car after that month, which is the number to compare against the car's resale value to check whether you are still underwater. Negative equity at month 12 is common on long-term loans with low down payments and is the single biggest reason buyers get squeezed when they trade in.