Step 1: Start with vehicle price
Use the negotiated selling price before down payment, trade-in, and financed taxes or fees.
2026 auto loan calculator with trade-in
2026 auto loan calculator with trade-in.
Estimate your monthly car payment, amount financed, total interest, and payoff schedule before you visit the dealer.
Formula shown
Front-end only
APR default: U.S. average
Updated July 27, 2026
Related calculators and guides
Continue with related trade-in scenarios.
Use these focused pages to compare affordability, longer terms, down payment choices, and trade-in payoff questions. If the payoff is higher than the vehicle value, go directly to the negative equity car loan calculator.
Calculator
Car Affordability Calculator
Directory
Browse all auto loan calculators
Calculator
Auto Loan Refinance Calculator
Calculator
Negative Equity Car Loan Calculator
Calculator
72 Month Auto Loan Calculator
Guide
How trade-in value affects auto loan payments
Guide
Down payment vs trade-in
Guide
Trading in a car you still owe money on
Amortization preview
Your first year, month by month.
Preview the first 12 payments or expand the full schedule to see how interest falls as principal is paid down.
First payment
$0
Principal in first payment
$0
Interest in first payment
$0
Payoff
60 months
On small screens, swipe the table sideways to see every column.
| Month | Payment | Principal | Interest | Balance |
|---|
Direct answer
How to calculate a car payment with trade-in.
To calculate an auto loan payment with a trade-in, start with the vehicle price, subtract the down payment and net trade-in equity, add any taxes and fees you plan to finance, then apply the APR and loan term with the fixed-rate amortization formula. Net trade-in equity equals trade-in value minus the remaining loan payoff.
Amount financed = vehicle price - down payment - net trade-in equity + financed taxes and fees. If net trade-in equity is negative, it increases the amount financed. Monthly payment = P x r(1+r)n / ((1+r)n - 1), where P is amount financed, r is monthly interest rate, and n is the number of monthly payments.
Calculation steps
Trade-in payment estimate, step by step.
Step 2: Subtract cash down
Enter the money you plan to pay upfront. A larger down payment lowers the amount financed.
Step 3: Subtract net trade-in equity
Use trade-in value minus any remaining loan payoff on the vehicle being traded. Negative equity is added to the new loan.
Step 4: Add financed taxes and fees
Include these costs only when they will be rolled into the new auto loan.
Step 5: Apply APR and term
The calculator converts APR to a monthly rate and amortizes the balance over the term.
Key definitions
Terms used in the calculator.
- Trade-in value:
- The credit a dealer or buyer gives for your current vehicle.
- Net trade-in equity:
- Trade-in value minus any remaining payoff on the old vehicle loan.
- Negative equity:
- The payoff amount that remains after the trade-in value is applied.
- Amount financed:
- The loan balance used to calculate monthly payments and interest.
- APR:
- The annual percentage rate entered as the yearly borrowing rate for this estimate.
Formula source
Why this formula is reliable.
M = P x r(1+r)n / ((1+r)n - 1)
M is the monthly payment, P is the amount financed, r is the monthly interest rate, and n is the number of payments.
This is the standard payment formula for a fully amortizing, fixed-rate installment loan. It is the same time-value-of-money approach behind common spreadsheet functions such as Microsoft Excel's PMT function: constant payments, constant interest rate, and a zero balance after the final scheduled payment.
For U.S. consumer credit, APR disclosure is governed by Regulation Z. This calculator does not compute a legal APR disclosure; it uses the APR you enter as the annual rate and converts it to a monthly rate for a planning estimate.
Worked example
What the default estimate means.
With a $35,000 vehicle price, $5,000 down payment, $3,000 trade-in credit, $2,400 financed taxes and fees, and a 60-month loan at 6.98% APR, the amount financed is $29,400.
That produces an estimated payment of about $582 per month and about $5,513 in total interest if all scheduled payments are made.
| Vehicle price | $35,000 |
|---|---|
| Down payment | -$5,000 |
| Trade-in credit | -$3,000 |
| Taxes and fees financed | +$2,400 |
| Amount financed | $29,400 |
| Estimated monthly payment | $582 |
Methodology
Transparent assumptions.
What is included
Vehicle price, down payment, trade-in value, trade-in loan payoff, APR, loan term, and any taxes or fees you choose to finance.
Default APR
The default 6.98% APR is a U.S. national reference rate for a 60-month new-car loan reported by WSJ Buy Side using Bankrate data in June 2026. It is used only as a starting point for the calculator.
Your actual APR can be higher or lower based on credit score, income, lender, vehicle age, down payment, loan term, state, dealer incentives, and the date you apply.
What is not included
Insurance, registration renewal, fuel, maintenance, repairs, depreciation, late fees, lender fees not entered, or dealer add-ons.
How to use the result
Use the estimate to compare scenarios. Verify actual terms with lenders before making a purchase decision.
Why estimates can differ
Lenders may calculate APR, fees, first payment timing, rebates, taxes, and rounding differently. Your contract and Truth in Lending disclosures control the actual cost of credit.
Sources
Reference data used on this page.
Default APR reference
The starting APR is based on a U.S. national average for a 60-month new-car loan reported by WSJ Buy Side using Bankrate rate data in June 2026.
This is not a local rate, personalized quote, lender approval, or legal APR disclosure. Replace it with your own quoted APR whenever you have one.
Formula reference
The payment calculation uses the standard fixed-rate amortization formula, the same constant-payment structure used by spreadsheet PMT functions.
FAQ
Common auto loan questions.
What is a good auto loan APR?
A good APR depends on credit score, loan term, vehicle age, lender, state, and market rates. The default rate here is only a U.S. national reference point, so compare multiple offers before committing.
Where does this calculator's formula come from?
It uses the standard amortization formula for fixed-rate installment loans. The same structure is used by spreadsheet PMT functions and amortization schedules: a loan balance, a periodic interest rate, and a fixed number of payments.
Is a 72-month auto loan a bad idea?
A longer loan can lower the monthly payment but often increases total interest and the risk of owing more than the car is worth.
How much should I put down on a car?
Many buyers aim for at least 10-20% down when possible. A larger down payment lowers the amount financed and may reduce interest costs.
Does this calculator include insurance?
No. This calculator estimates loan payments only. Insurance, fuel, maintenance, registration, and depreciation should be considered separately.
Can I use this as a 72 month auto loan calculator?
Yes. Enter 72 as the loan term. A 72-month loan usually lowers the payment compared with 48 or 60 months, but it can increase total interest and keep you in debt longer.
How does a trade-in affect a car loan?
A trade-in credit reduces the amount financed when it is applied to the purchase. If you owe money on the trade-in, subtract the payoff from the trade-in value first. If the result is negative, that negative equity may increase the new loan.
How do I calculate a car payment with trade-in?
Start with the vehicle price, subtract your down payment and net trade-in equity, then add any taxes and fees you plan to finance. The calculator applies the APR and loan term to that amount financed.
What if I still owe money on my trade-in?
Enter the remaining payoff as trade-in loan payoff. If payoff is higher than trade-in value, the old-loan shortfall may be rolled into the new loan. Use the negative equity car loan calculator for that scenario.
Can this help with bad credit car loan planning?
It can help you test higher APR scenarios. Bad credit loans may have higher rates, fees, or down payment requirements, so compare lender quotes carefully.
More trade-in guides