About the Car Payment Calculator
Use this Car Payment Calculator to estimate a monthly payment for your auto purchase. Start with the financed amount (vehicle price minus down payment and any trade‑in credit), then enter the APR and the term in months. The tool applies the standard amortizing loan formula to return a fixed monthly payment that blends principal and interest.
Estimating your payment in advance helps you set an affordable budget, compare lender offers, and negotiate confidently at the dealership. Try different scenarios—larger down payment, shorter term, or improved APR—to see how each lever reduces the monthly cost and total interest paid over the life of the loan.
Remember, the monthly car payment is only one part of ownership. Account for insurance, registration, taxes, fuel, maintenance, and potential extended warranties or add‑ons. Focus on the out‑the‑door price rather than just the monthly payment to avoid hidden fees and products bundled into financing.
Key features
- Instant monthly payment estimate from amount, APR, and term
- Amortization‑based method consistent with lender calculations
- Scenario testing for down payment, APR, and term length
- Useful for budgeting and comparing pre‑approval vs. dealer financing
- Clear, mobile‑friendly interface
How to use
- Enter the financed amount (price − down payment − trade‑in).
- Enter the APR (annual percentage rate).
- Enter the loan term in months (e.g., 36, 48, 60, 72).
- Review the fixed monthly payment result.
Formula
Payment = P × [ r(1 + r)n ] / [ (1 + r)n − 1 ] where P is principal, r is monthly rate, n is months.
Variables
| Symbol | Meaning |
|---|---|
| P | Financed amount after down payment and trade‑in |
| r | Monthly interest rate (APR ÷ 12 ÷ 100) |
| n | Loan term in months |
Examples
- Financing $18,000 at 7.25% for 48 months yields a predictable monthly payment and total interest figure.
- Raising your down payment by $2,000 can noticeably reduce your payment and interest expense.
- Cutting the term from 72 to 60 months increases the payment but lowers total interest considerably.
Tips
- Get pre‑approved with a bank/credit union and compare to the dealer’s offer.
- Avoid extending terms just to hit a target payment—watch total interest and negative equity risk.
- Check for prepayment penalties; extra principal payments can shorten your loan.
- Evaluate the out‑the‑door price to avoid overpriced add‑ons rolled into financing.