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Car loan payment, with tax and fees
See your monthly payment and the full cost of the loan once sales tax, fees and your trade-in are counted, including the new car-loan interest deduction.
Data last checked . Every source is listed below.
Your car payment
Over 60 months that is $6,386 of interest on $32,960 borrowed, about 19 cents of interest for every dollar.
- Amount you borrow
- $32,960price, sales tax and fees, less cash down and trade-in
- Sales tax
- $2,210
- Interest over the loan
- $6,386
- Everything you pay, including cash down
- $43,346
On a 4-year loan the payment would be $792 a month, $137 more, and you would pay $1,314 less in interest.
For information only: not advice, a recommendation or an offer. We take care, but our sources can lag and so can we, so a figure may be out of date. Official figures come from lenders, plans, the IRS or Social Security.
What moves the number
The few things that change the answer the most, in plain terms.
- Loan length
- A longer loan makes the payment smaller and the total bigger. A seven-year loan can leave you owing more than the car is worth for years.
- The rate
- Car loan rates swing widely with credit score and between lenders and dealers. Banks, credit unions and dealers each set their own.
- Cash down and trade-in
- Every dollar down is a dollar you do not pay interest on. A trade-in with a loan balance larger than its value adds that gap to your new loan.
- Sales tax and fees
- Most states tax the price less your trade-in, and fees are often rolled into the loan, so the amount you borrow is higher than the sticker price.
- Where the car was built
- For 2025 through 2028, interest on a loan for a new car with final assembly in the US can be deducted, up to $10,000 a year, for incomes below set limits.
The working
Step by step, with the numbers from the starting example, so you can check it on paper.
- Sales tax is 6.5% of the price after your trade-in: $2,210.
- You borrow the price plus tax and fees, less your cash down and trade-in value, plus anything still owed on the trade-in: $32,960.
- The payment is the standard amortizing payment on $32,960 at 7.2% over 60 months: $656.
- Over the whole loan you pay $39,346 to the lender, of which $6,386 is interest.
- Adding your $4,000 cash down (and the trade-in) gives a total cost of $43,346.
- We left the interest deduction out. Turn it on under More options if the car is new and had final assembly in the US.
Try a different case
Each opens the calculator with the numbers filled in.
What we assumed
Where a number is an example, we say so.
- Our estimateThe rate is an example, not an offer, and dealers can mark up the rate a lender gives them.
- Checked sourceThe interest deduction applies to loans for personal-use vehicles bought new, with final assembly in the US, for tax years 2025 through 2028. The first $10,000 of yearly interest can be deducted, reduced as income rises above $100,000 ($200,000 for joint filers).
- Our estimateThe deduction is shown for the first year only. It shrinks each year as the interest portion of your payment falls.
- Our estimateWe assume sales tax applies to the price less the trade-in, which is how most states work. A few tax the full price.
- Our estimateInsurance, fuel, maintenance and depreciation are not included.
Sources
- Checked sourceInternal Revenue Service, "One, Big, Beautiful Bill provisions", deduction for interest on car loans: up to $10,000 a year, 2025 through 2028, original use by the taxpayer, final assembly in the United States, phase-out above $100,000 ($200,000 joint) of MAGI. Data year 2025, checked 2026-11-04.