How to use this calculator
- Enter the price, your sales tax rate and the fees.
- Add your trade-in, anything still owed on it and your down payment.
- Enter the APR and term; for a new US-assembled car, add your income and bracket.
Frequently asked questions
How much car can I afford?
Look at the total cost, not just the payment. In the example, a $38,000 car financed over 60 months costs $568 a month and $5,398 in interest.
Is a longer loan a good idea?
It lowers the payment but raises the interest: over 84 months the example payment falls to $433, while interest rises to $7,685. Long loans also leave you owing more than the car is worth for longer.
Can I deduct car loan interest?
For 2025 through 2028, interest on a loan for a new, personal-use vehicle with final assembly in the US is deductible up to $10,000 a year, whether or not you itemize. The deduction shrinks by $200 for each $1,000 of income above $100,000 ($200,000 for joint filers). It is claimed on Schedule 1-A.
What happens to negative equity on my trade-in?
If you owe more on your current car than it is worth, the dealer adds the difference to your new loan. You then pay interest on it — enter the amount owed to see the effect.