Enter the price, down payment, trade-in, sales tax and APR to see your monthly car payment and the total interest you will pay. Buying a $35,000 car with $5,000 down, 6% sales tax rolled into the loan and a 60-month loan at the August 2026 average new-car rate of 7.54%, you would pay about $643.83 a month.
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Monthly car payment with sales tax, trade-in and fees · Updated October 12, 2026
- Amount financed
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- Sales tax
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- Total interest
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- Total of payments
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- Cash due at signing
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- Total cost of the car
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| Term | Payment | Total interest |
|---|
Estimate only. Dealers may add documentation fees, and some states tax the full price without a trade-in credit.
How the payment is calculated
- Sales tax = (price − trade-in value) × tax rate in most states; a few states tax the full price.
- Amount financed = price − down payment − trade-in + any balance still owed on the trade-in + sales tax and fees (if rolled in).
- Monthly payment = amount × r × (1 + r)n ÷ [(1 + r)n − 1], where r = APR ÷ 12 and n is the number of months.
In the example, sales tax is $35,000 × 6% = $2,100, so the amount financed is $35,000 − $5,000 + $2,100 = $32,100. At 7.54% for 60 months that is $643.83 a month and $6,530 of interest.
Longer loans cost more
| Term | Monthly payment | Total interest |
|---|---|---|
| 36 months | $999.10 | $3,868 |
| 48 months | $776.74 | $5,184 |
| 60 months | $643.83 | $6,530 |
| 72 months | $555.63 | $7,906 |
| 84 months | $492.99 | $9,311 |
Stretching to 84 months lowers the payment by about $151 compared with 60 months but adds roughly $2,781 of interest, and you are more likely to owe more than the car is worth for longer.
Trade-ins and negative equity
If you still owe more on your old car than it is worth, that difference (negative equity) is usually added to the new loan. Enter both the trade-in value and the amount owed so the calculator includes it.
New car loan interest deduction
From 2025 through 2028, interest on a loan for a new, personal-use vehicle that had final assembly in the United States may be deductible, up to $10,000 a year, phasing out above $100,000 of modified AGI ($200,000 joint). Leases do not qualify, and the vehicle identification number must be reported on your return.
FAQ
What is a good APR for a car loan?
It depends on your credit score, the term and whether the car is new or used. The Federal Reserve’s August 2026 averages at commercial banks were 7.54% for 60-month and 7.17% for 72-month new car loans; credit unions and manufacturer promotions can be lower.
Should I roll taxes and fees into the loan?
Paying them upfront lowers the amount you borrow and the interest you pay. Rolling them in keeps cash in your pocket but costs interest over the whole term.
Related calculators
Sources
- Federal Reserve G.19 Consumer Credit: Terms of credit · release of October 7, 2026
- IRS: One, Big, Beautiful Bill Act deductions (car loan interest)
Figures current as of October 12, 2026
Each formula is checked against a separate test sheet with at least three worked examples. Results are estimates based on the numbers you enter and the published rules; your actual figures may differ. This is general information, not financial or tax advice.
Spotted a mistake? Contact us and we will fix it and update the date above.