Car Loan Interest Deduction Calculator

Estimate tax savings from business-use car loan interest.

Deductible Amount

$303.55

Annual Interest

$1,379.76

Tax Savings

$303.55

Monthly Payment

$483.32

What Is the Car Loan Interest Deduction Calculator?

Calculate your OBBBA car loan interest tax deduction for 2025-2028. See how much you'll save on taxes with the new auto loan interest deduction.

How to Use

Using the car loan interest deduction calculator is simple:

  • Enter your values in the input fields
  • Click the calculate button
  • View your results instantly

Tips

  • Double-check your inputs for accurate results
  • This tool provides estimates - consult a professional for important decisions
  • Save your results for future reference

Frequently Asked Questions

Can I deduct car loan interest?+
Generally not, unless you are self-employed and use the vehicle for business. Interest on a personal car loan is not deductible. For business use: you can deduct the business-use percentage of the interest, or use the standard mileage rate.
When is car loan interest deductible?+
If you are self-employed and use the vehicle for business (deliveries, client meetings, work errands), you can deduct the business-use percentage of the interest. Detailed mileage records are required.
What is the difference between the actual expense and standard mileage methods?+
The actual expense method deducts the business-use percentage of vehicle costs (gas, maintenance, insurance, depreciation, loan interest). The standard mileage method uses an IRS-set per-mile rate (70 cents in 2026). Compare both to choose the better method.
Can I deduct commuting?+
No. Commuting from home to a regular workplace is a personal expense and not deductible. Only business-related errands (office to client, temporary work sites) are deductible.

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