How to Calculate Auto Loan
Payment, total interest and the tax-deductible interest under the new 2026 rules.
How this number is built
Calculating it yourself
Step 1
Negotiate the vehicle price before discussing monthly payments — dealers can hide cost in the term.
Step 2
Add sales tax and fees; in most states trade-in value reduces the taxable amount.
Step 3
Add any negative equity rolled over from the vehicle you are trading in.
Step 4
Compare the same price at 48, 60 and 72 months to see what the longer term actually costs.
Step 5
If the vehicle is new and US-assembled, check the year-one interest against the new deduction.
What people ask next
Is a longer term ever right?
Only if the rate is genuinely low and you keep the vehicle well past payoff. Otherwise it usually costs more and leaves you underwater longer.
Does the new interest deduction apply to me?
Only for new vehicles with final assembly in the United States, on loans originated after 31 December 2024, subject to income limits.
Searches this page answers
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| car loan interest | Auto Loan Calculator |
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