How this car loan payment calculator works
Standard amortization: payment = P·r/(1−(1+r)⁻ⁿ), r = APR/12, n = months. Financed amount = price + tax(price) − down − trade. The interest-vs-price column is the gut-check number: at 7.5% for 60 months on $30k financed, ~$6.4k of interest is 18% of sticker — same car, $24k of 'real cost' versus 36 months' ~$3.5k.
Frequently asked questions
What's a normal auto loan APR in 2026?
New-car average ~7.5–8% (prime credit), used ~10–11%. Dealers mark up the bank's buy rate a full point ('dealer reserve') — get the quoted bank rate in writing and compare via credit-union preapproval, which usually beats dealer financing 1–2% for good credit.
Is 72 or 84 months ever smart?
It's the longest-payoff trap: 84-month loans average 16% negative equity at trade-in (Experian 2025-26 data) and the interest line can hit 30% of the car's value. The exception: cash-flow survival, not optimization — keep it under 60 if the payment test allows.
Does trade-in reduce sales tax?
In most states, yes — tax applies to (price − trade). That's why dealers 'give' trade value back via a higher price: compare out-the-door totals, not the trade number alone.