What This Calculator Does
The Car Loan Payment Calculator estimates the fixed monthly payment for an auto loan based on the price of the vehicle, your down payment, any trade-in credit, the annual percentage rate (APR), and the loan term in months. It also shows the total amount you will repay and the total interest cost over the life of the loan, so you can compare offers and budget with confidence.
How to Use It
Enter the vehicle price, then subtract value by entering a down payment and trade-in amount. Type the APR your lender quoted and choose your loan term in months (common terms are 36, 48, 60, and 72 months). The calculator instantly returns your estimated monthly payment along with the amount financed, total of payments, and total interest.
The Formula Explained
The standard amortized loan payment formula is $$ M = \frac{P \cdot r (1+r)^n}{(1+r)^n - 1} $$. Here P is the amount financed (price minus down payment and trade-in), r is the monthly interest rate (APR divided by 12, expressed as a decimal), and n is the number of monthly payments. When the APR is 0%, the payment is simply the principal divided by the number of months.
Worked Example
Suppose you buy a $30,000 car with a $5,000 down payment and no trade-in, financing $25,000 at 6% APR over 60 months. The monthly rate is \( 0.06 / 12 = 0.005 \). Plugging in gives a monthly payment of about $483.32, a total of payments around $28,999.20, and roughly $3,999.20 in interest.
FAQ
Does this include taxes and fees? No — enter the final financed price after taxes and fees if you want them rolled into the loan; otherwise the result reflects only the price you enter.
How does a bigger down payment help? It lowers the amount financed, which reduces both your monthly payment and the total interest you pay.
Is a shorter term better? A shorter term raises the monthly payment but lowers total interest, while a longer term does the opposite.
