Cost examples updated November 6, 2026
Go ahead, play with it. Change any number and watch the total move.
Your car payment
Updates as you typeAPR is the yearly interest rate on the loan, in percent, the price of borrowing, before fees.
%Where the money goes
60 monthsTax is figured on the price minus trade-in. Some states tax the full price or treat trade-in value differently, so check your own state.
Where the numbers come from: Vehicle price: Kelley Blue Book, September 2026, average new vehicle $50,562 · Sales tax: Tax Foundation, midyear 2026, US average 7.53% · Interest rate: Experian, Q2 2026, average 6.35% new, 11.19% used · Loan term: Experian, Q2 2026, average 69.5 months new.
Calculation transparency
Jurisdiction. United States. Sales tax, titling, registration and doc fee rules are set by your state, so your exact numbers depend on where you buy and register the car.
Rules and time period. Fixed-rate loan, equal monthly payments, monthly rate equals APR divided by 12. Tax is figured on the price minus the trade-in value, which is how most states tax a trade-in deal. The worked example is dated November 6, 2026.
Scope and limitations. Educational estimate only. Your rate depends on credit history, the age of the car and the lender, and your tax and fees depend on your state and the deal. Get a real quote for the same car and loan before you decide. A buyer order is the document that binds.
Source links checked November 6, 2026. Figures: Experian State of the Automotive Finance Market (Q2 2026); Kelley Blue Book average transaction prices (September 2026); Tax Foundation State and Local Sales Tax Rates, Midyear 2026 (rates as of July 1, 2026); Federal Reserve (FRED), motor vehicle loans owned and securitized (June 2026).
Primary sources: Experian, average car payment and loan rates; Experian, auto loan rates and financing for 2026; Kelley Blue Book, September 2026 average transaction prices; Tax Foundation, 2026 sales tax rates, midyear update; CFPB, auto-loan shopping guidance; Regulation Z, 12 CFR Part 1026. How the numbers are calculated is written down on the methodology page, and every source is listed on the sources page.
How to use
- Enter the vehicle price. The calculator starts at $35,000. For scale, the Kelley Blue Book September 2026 average new vehicle price is $50,562.
- Enter the down payment and any trade-in. Both come straight off the amount financed, so the same price costs less to borrow against.
- Enter the sales tax rate and the fees. The calculator starts at the Tax Foundation midyear 2026 US average of 7.53% and $900 in fees. Your state rate and your dealer fees will differ.
- Enter the APR and the loan term. Experian's Q2 2026 averages are 6.35% on a new car and 11.19% on a used car, and the average new car loan runs 69.5 months.
- Read the payment, then the term table. The results show the monthly payment, the amount financed, total interest, total cost and the payoff date. The table below compares 36, 48, 60 and 72 months on the same loan, so you can see what each term costs in total.
At the example rate used across this page, 8% APR (the yearly interest rate on the loan) over 60 months (five years), borrowing the full price, a $25,000 loan costs about $507 a month and a $40,000 loan costs about $811 a month. Your own payment will differ if your rate, your term, or the amount you borrow differs. The rest of the page shows the formula, worked examples, and tables so you can find your number.
Get the free Car Buyer’s Cheat Sheet, 7 things to know before you sign anything. The numbers that matter, in plain English, on one page.
Join the Driveonomics email list. Occasional useful updates, no spam, unsubscribe anytime.
The formula, in plain words
Your monthly payment comes from three inputs, and nothing else:
The math works like this: the yearly rate is split into a monthly rate (APR divided by 12), and the payment is set so the loan is paid off exactly at the end of the term, interest included. You do not need to do that math by hand, one shortcut does it. At 8% over 60 months, every $1,000 you borrow costs $20.28 a month. So $25,000 borrowed is 25 × $20.28, which is about $507 a month, and $40,000 borrowed is 40 × $20.28, which is about $811 a month. The tables below use the exact formula, not the shortcut, so the dollars match to the nearest dollar.
One thing to get right before you use any number here: the payment is based on the amount you borrow, not the sticker price. Put money down and you borrow less, so the payment drops. Roll sales tax or fees into the loan and you borrow more, so the payment rises. Every example below states the amount borrowed, so you can see exactly what is being paid off.
Formula
The calculator runs four steps. First, the amount financed: the vehicle price, minus the down payment, minus the trade-in value, plus sales tax on the price minus the trade-in value, plus fees. Second, the monthly rate: the APR divided by 12. Third, the monthly payment: the amount financed, times the monthly rate, times one plus the monthly rate raised to the number of months, all divided by one plus the monthly rate raised to the number of months, minus one. When the APR is zero, the payment is simply the amount financed divided by the number of months.
Fourth, the totals. Total paid equals the monthly payment times the number of months. Total interest equals total paid minus the amount financed. Total cost equals the down payment, plus the trade-in value, plus total paid, which is the same as the price, plus tax, plus fees, plus interest. The payoff date is the month the loan starts plus the loan term in months.
Example 1: a $25,000 car
Borrow the full $25,000 at 8% over 60 months and the payment is about $507 a month. Over five years you pay $30,415 in total, of which $5,415 is interest (the cost of borrowing) and $25,000 is the loan itself. Put $2,500 down (10%) and borrow $22,500 instead, and the payment falls to about $456 a month at the same rate and term, before any tax or fees.
Example 2: a $40,000 car
Borrow the full $40,000 at 8% over 60 months and the payment is about $811 a month. Over five years you pay $48,663 in total, of which $8,663 is interest. Put $4,000 down (10%) and borrow $36,000 instead, and the payment falls to about $730 a month at the same rate and term, before any tax or fees. The same borrow-less, pay-less rule as Example 1, the only thing that changed is the size of the loan.
Example 3: how the rate and the term change the payment
Take the same $40,000 loan and change only one thing at a time:
| What changes | Monthly payment | Total paid | Interest |
|---|---|---|---|
| 6% over 60 months (lower rate) | $773 | $46,399 | $6,399 |
| 8% over 60 months (the page example) | $811 | $48,663 | $8,663 |
| 10% over 60 months (higher rate) | $850 | $50,993 | $10,993 |
| 8% over 36 months (shorter term) | $1,253 | $45,124 | $5,124 |
| 8% over 84 months (longer term) | $623 | $52,370 | $12,370 |
The trade-off is plain: a longer term makes the monthly number smaller and the total number bigger. Stretching from 60 to 84 months cuts this payment by about $188 a month but adds $3,707 in interest. Shortening to 36 months raises the payment by about $442 a month but saves $3,539 in interest. A lower rate helps on both counts, a smaller payment and less interest, which is why the rate on your own quote matters as much as the price of the car.
Payments by price, at 8% over 60 months
Every row below borrows the full amount shown, at the page's example rate of 8% over 60 months, with no down payment and no tax or fees rolled in. Find your amount borrowed, not just the price tag, and read across.
| Amount borrowed | Monthly payment | Total paid | Interest |
|---|---|---|---|
| $10,000 | $203 | $12,166 | $2,166 |
| $15,000 | $304 | $18,249 | $3,249 |
| $20,000 | $406 | $24,332 | $4,332 |
| $25,000 | $507 | $30,415 | $5,415 |
| $30,000 | $608 | $36,498 | $6,498 |
| $35,000 | $710 | $42,580 | $7,580 |
| $40,000 | $811 | $48,663 | $8,663 |
| $50,000 | $1,014 | $60,829 | $10,829 |
| $60,000 | $1,217 | $72,995 | $12,995 |
Between rows, the pattern holds steady: at 8% over 60 months, each extra $5,000 borrowed adds about $101 a month and about $1,083 in interest. That is a quick way to adjust any row to a price that is not listed.
Worked example: a $35,000 car at the published averages
Take a $35,000 car with $3,500 down (10%), no trade-in, sales tax at the Tax Foundation midyear 2026 US average of 7.53%, $900 in fees, and the Experian Q2 2026 average new car rate of 6.35% APR over 60 months. Sales tax comes to $2,635.50, so the amount financed is $35,000 minus $3,500, plus $2,635.50, plus $900, which is $35,035.50.
At 6.35% over 60 months, that loan costs $683 a month. Over five years you pay $40,983 in total, of which $5,948 is interest. Add the $3,500 down payment and the total cost of the car is $44,483. A loan starting in November 2026 is paid off in November 2031.
The same loan at the Experian Q2 2026 average used car rate of 11.19% would cost $765 a month, $45,905 in total, with $10,869 of that as interest. The only thing that changed is the rate.
For scale, the same math on the Kelley Blue Book September 2026 average new price of $50,562, with 10% down, 7.53% tax, $900 in fees, 6.35% APR and 60 months, gives about $979 a month.
| Loan term | Monthly payment | Total paid | Interest |
|---|---|---|---|
| 36 months | $1,071 | $38,571 | $3,535 |
| 48 months | $828 | $39,765 | $4,730 |
| 60 months (the example) | $683 | $40,983 | $5,948 |
| 72 months | $586 | $42,224 | $7,189 |
Stretching from 60 to 72 months cuts the payment by about $97 a month but adds $1,241 in interest. Shortening to 36 months raises the payment by about $388 a month but saves $2,413 in interest. The payment-to-income line: $683 a month is 10.9% of $6,250 gross monthly pay, the monthly pay on a $75,000 yearly income, before insurance, gas and upkeep. The payment alone is 10.9% of gross monthly pay in this example; insurance, gas and upkeep come on top of it.
Definitions
Amount financed. What you actually borrow: the price, minus down payment and trade-in, plus tax and fees.
APR. Annual percentage rate, the yearly cost of borrowing before fees. Experian's Q2 2026 averages are 6.35% on a new car and 11.19% on a used car.
Down payment. Cash you pay up front. It comes off the amount financed, so a bigger down payment means a smaller loan and a smaller payment.
Trade-in value. What the dealer credits for your old car. Like a down payment, it comes off the amount financed, and in most states it also lowers the taxable price.
Sales tax. Tax charged on the sale, set by your state and locality. The Tax Foundation midyear 2026 US average combined rate is 7.53%.
Fees. Title, registration and doc fee charges added to the deal. This page uses $900 as the example figure.
Loan term. The number of monthly payments. Experian's Q2 2026 average is 69.5 months on a new car and 67.9 months on a used car.
Total interest. Everything you pay above the amount financed over the life of the loan.
Payoff date. The month of the last payment, counted forward from the month the loan starts.
Payment-to-income. The monthly payment as a share of gross monthly pay. In the worked example above, $683 is 10.9% of $6,250 gross monthly pay.
Checking the math against a real published example
The same formula produces the payment on our Tahoe cost page. There, a $68,095 price with 10% down, 7% sales tax, and $900 in fees means $66,952 borrowed. At 8% over 60 months that is $1,358 a month, with $14,501 in interest, exactly what the Tahoe page shows. The formula is the same; only the amount borrowed changed, which is the point: get the amount borrowed right and the payment follows.
The payment is only part of the cost
The monthly payment is the loan, and the loan is only one line of owning a car. Insurance, gas, upkeep (maintenance), registration, and the value the car loses over time all come every month or every year on top of the payment. A car with an $811 payment can easily cost well over $1,000 a month all-in, depending on insurance and miles driven. That is why this page answers the payment question first and then points you to the full picture: run your own price, insurance, and mileage through the calculator for the five-year total, work backward from a monthly budget on how much car can I afford, or see what fits under a payment ceiling on family cars under $400 a month. Got a dealer quote in hand? The out-the-door price calculator builds the full dealer total first, with tax, title and registration, and the doc fee, so your payment starts from the right number. Shopping used? The true cost of a used car page runs the same full math for a used purchase.
What this page does not claim
Two honest gaps, stated rather than smoothed over. First, this page does not publish a single “today’s rate.” Rates move with the market and vary by credit history, the age of the car, and the lender, so any one number would be wrong for most readers. The 6%, 8%, and 10% figures here are clearly labeled example rates, the 8% figure is this site’s standard example rate, used on the Tahoe page and elsewhere, so pages can be compared like-for-like. Replace them with the rate on your own quote. Second, $25,000 and $40,000 are round example amounts, not market averages, and sales tax, title, and dealer fees vary by state and by deal, so they are left out of the main tables and shown only where stated (as in the Tahoe check above). With your own price, down payment, rate, and term, the same formula gives your payment.
Method: fixed-rate loan, equal monthly payments, monthly rate = APR / 12, payment = amount borrowed × monthly rate / (1 − (1 + monthly rate)−months). Payments rounded to the nearest dollar; totals and interest computed from the unrounded payment. Figures assume no extra fees, no missed payments, and no early payoff.
Questions people actually ask
How much will my car payment be on a $25,000 car?
At the example rate on this page, 8% over 60 months, borrowing the full $25,000, about $507 a month, $30,415 in total, with $5,415 of that as interest. A down payment lowers the amount you borrow and lowers the payment; your own rate and term will move the number.
How much will my car payment be on a $40,000 car?
At 8% over 60 months, borrowing the full $40,000, about $811 a month, $48,663 in total, with $8,663 of that as interest. At 6% it would be about $773 a month, and at 10% about $850 a month, over the same 60 months.
Does a longer loan lower my car payment?
Yes, but it raises what you pay in total. On $40,000 at 8%, stretching from 60 months to 84 months drops the payment from about $811 to about $623 a month, while total interest rises from $8,663 to $12,370. Cutting to 36 months raises the payment to about $1,253 a month but drops total interest to $5,124.
Is the car payment the whole cost of owning a car?
No. The payment is only the loan. Insurance, gas, upkeep, registration, and the value the car loses over time all come on top of it. The calculator on the home page adds those lines together so you can see the full monthly cost, not just the payment.
What is the average car payment in 2026?
Experian's Q2 2026 figures put the average new car payment at $765 a month and the average used car payment at $542 a month. The average new car loan ran 69.5 months at 6.35% APR, and the average used car loan ran 67.9 months at 11.19% APR. Averages describe the middle of the market, not any one loan; your payment follows your own price, rate and term.
Related: A bigger down payment lowers the payment. See how much to put down.
Related: Stretching the term lowers the payment but costs more. See whether an 84-month loan is a good idea.
Related: Already have the loan? See what paying it off early saves.
Related: A discount lowers the amount you borrow. See what $1,000 off is really worth.
Related: The dealer may offer cash back or a low rate instead. See whether the cash back or the low APR saves more.
Related: Compare auto loan offers at myAutoloan Affiliate link: if you apply through it, Driveonomics may earn a commission at no extra cost to you. See our affiliate disclosure.