Auto Loan Calculator
Estimate your monthly car payment with exact state and city sales tax rates for all 50 states. Includes full amortization schedule and trade-in tax savings.
Trade-in reduces the taxable amount in most states
Applied rate: 6.25% → $2,188 on this vehicle
Monthly Payment
$629.79
for 60 months at 6.5% APR
Amortization schedule
Loan amount
$32,188
Total interest
$5,600
Total paid
$37,787
Payoff
5y 0m
| Year | Principal | Interest | Balance |
|---|---|---|---|
| Year 1 | $5,631 | $1,926 | $26,556 |
| Year 2 | $6,008 | $1,549 | $20,548 |
| Year 3 | $6,411 | $1,147 | $14,138 |
| Year 4 | $6,840 | $718 | $7,298 |
| Year 5 | $7,298 | $259 | $0 |
How to lower your monthly payment
Get pre-approved before the dealer
A pre-approval from a credit union or bank gives you a rate benchmark and removes the dealer's ability to mark up your financing. Credit unions typically beat bank rates by 1–2%.
Increase your down payment
A larger down payment reduces the loan principal, lowering both your monthly payment and total interest. Aim for 20% on new cars, 10% on used, to stay above water as the car depreciates.
Use your trade-in strategically
In most states, your trade-in reduces the taxable amount — so you save on both the loan principal and the sales tax. Always get your trade-in value from KBB or Edmunds before stepping into the dealer.
Choose a shorter loan term
Shorter terms have higher monthly payments but dramatically less total interest. A 48-month loan vs 72-month can save $1,000+ in interest on the same car at the same rate.
Improve your credit score first
Even a 20-point improvement in credit score can drop your rate by 1–2%. If your score is borderline, waiting a few months to improve it before applying can save hundreds over the loan.
Avoid add-ons at the dealer
Extended warranties, gap insurance, and paint protection are almost always cheaper elsewhere. These are financed into the loan — you pay interest on them for years.
Disclaimer: The results provided by this calculator are estimates for informational purposes only and do not constitute financial, legal, or tax advice. Actual loan terms, interest rates, monthly payments, and total costs will vary based on your credit profile, lender, and other factors. Property tax rates shown are state averages and may differ from your local rate. FHA mortgage insurance premiums (MIP) are based on current HUD guidelines and are subject to change. Always consult a licensed mortgage professional or financial advisor before making any borrowing decisions. HitCalc is not a lender and does not offer mortgage products.
Frequently asked questions
What's a good auto loan rate in 2026?
Excellent credit (720+): 5–7% on new cars, 6–9% on used. Fair credit (620–680): expect 10–16%. Credit unions typically beat banks by 1–2%.
How much does sales tax add?
Varies by state and city. Oregon, Montana, NH: 0%. Tennessee, Chicago: ~9–10%. On a $35K car at 9%, that's ~$3,150 added to your loan — about $60/mo on a 60-month term.
Does trade-in reduce sales tax?
In most states, yes. Tax is calculated on the purchase price minus your trade-in value — saving you real money.
What term length is best?
48–60 months is the sweet spot. Terms over 60 months often carry higher rates and leave you owing more than the car's worth.
Should I put more money down?
Generally yes — 20% down on new, 10% on used minimizes the risk of going underwater and reduces total interest paid.
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