We Believe in Financial Well-Being.
We believe everyone should have free access to information in order to make smarter financial decisions. Although our site doesn’t showcase every company or financial product available in the market today, we’re confident in our recommendations, many of which are from our advertising partners, to help guide you on your financial journey. Free of charge for you.
Instead of charging you money, we're compensated by our partners and third-party advertisers. This compensation, which may include when a customer clicks on a link, when an application is approved, when an account is opened or when an account is funded, along with our proprietary algorithms, may, at times, influence the products we decide to review, discuss, and their position on our site or the order in which they appear.
This article and the comparison table are not personal financial advice. While we provide information resources and educational pieces, the content here is not a substitute for personal financial guidance from a registered financial advisor.
Car Loan Payment Calculator
By: Conor Keenan, AWMA®
Editorial Independence: Our recommendations and reviews are our own. Partner commissions may help keep our site free and do not influence our editorial content.
Estimate your car payment
Fixed-rate monthly payment estimate. The loan amount is vehicle price minus down payment. Taxes, fees, trade-in debt and ownership costs are excluded. Total loan repayments exclude the down payment.
Enter the loan’s interest rate. An APR that includes fees may not reproduce the lender’s monthly payment.
Results:
Estimated monthly payment ($): 0.00
Estimated total interest ($): 0.00
Estimated total loan repayments ($): 0.00
Apply for Car Finance OnlineEstimate a monthly car payment, total interest and total loan repayments from the vehicle price, down payment, loan term and annual interest rate. Use the calculator to compare borrowing scenarios before checking a lender’s written offer.
The estimate assumes a fixed rate and equal monthly payments. It does not include taxes, title or registration charges, dealer fees, optional add-ons, insurance or other ownership costs. It is not a loan offer or an approval decision.
In This Article
Key Takeaways
- The amount financed in this tool is the vehicle price minus your down payment.
- A longer term usually lowers the monthly payment but increases total interest when the amount borrowed and rate stay the same.
- Enter the loan’s interest rate. Annual percentage rate (APR) can include additional fees and is useful for comparing offers.
- Budget for the vehicle’s full cost, including expenses outside the loan payment.
How to calculate a car loan payment
- Enter the vehicle price. Use the purchase price before the costs this tool excludes.
- Enter your down payment. It must be between $0 and the vehicle price. This calculator has no separate trade-in or existing-loan field.
- Enter the term in whole months. For example, five years is 60 months.
- Enter the annual interest rate. Use the fixed nominal rate quoted for the loan, including 0% when applicable.
- Calculate and compare. Change one input at a time to see what drives the payment and interest cost.
If taxes or fees will be financed, ask the lender for the actual amount financed and payment schedule. Negative equity from a trade-in can also increase borrowing; simply subtracting a trade-in’s value can miss that cost.
Example: a $30,000 car with $5,000 down
A $30,000 purchase with a $5,000 down payment leaves $25,000 financed. At a hypothetical fixed 6.00% annual interest rate, the estimates are:
| Term | Monthly payment | Total interest | Total loan repayments |
|---|---|---|---|
| 48 months | $587.13 | $3,182.03 | $28,182.03 |
| 60 months | $483.32 | $3,999.20 | $28,999.20 |
| 72 months | $414.32 | $4,831.20 | $29,831.20 |
Totals use the unrounded payment, so multiplying a displayed monthly amount by the number of months may differ by a few cents. A lender may adjust the final payment. Total loan repayments exclude the $5,000 down payment and all other excluded costs.
The longer term makes the monthly payment smaller while increasing interest. The CFPB’s explanation of auto-loan amortization describes how payments cover both principal and interest over time.
How the payment formula works
Monthly payment = L × i ÷ [1 − (1 + i)^(-N)]
L is the amount financed, i is the annual interest rate divided by 12 and written as a decimal, and N is the number of monthly payments. At 0% interest, divide the loan amount by the number of payments. If the down payment covers the full vehicle price, there is no remaining loan balance in this model.
The calculator does not produce an amortization schedule or model extra payments. Actual interest can differ with a lender’s daily-interest method, payment dates, rounding or loan terms.
Interest rate, APR and the full cost of a car
The interest rate measures the charge for borrowing the principal. APR also incorporates certain loan fees, so entering APR into an interest-rate formula may not reproduce the lender’s payment. Compare APR with APR, alongside fees and the total repayment amount. See the CFPB’s interest-rate and APR explanation.
Request a written out-the-door price and compare financing from more than one source. Review the purchase price, financing terms and optional products separately.
Keep room in your budget for insurance, fuel, maintenance and repairs. The CFPB’s car-affordability guidance covers expenses beyond the loan payment. A lower-priced vehicle or larger down payment may reduce borrowing; leasing is a different arrangement with its own mileage, wear and end-of-term conditions.
Frequently asked questions
What is a good car-loan interest rate?
There is no single rate that fits every borrower. Compare current written offers for the same amount and term, accounting for credit qualifications, vehicle age, fees and APR. This calculator uses your input rather than claiming a rate is available to you.
Should I use a bank, credit union or dealer?
Compare the complete offers. A preapproval can provide a useful reference, while a dealer may offer other financing options. Check any conditions attached to a promotional rate and compare the total cost.
Can I pay off a car loan early?
Check the contract for prepayment conditions and ask the lender how extra payments are applied. This tool assumes the scheduled payments continue through the full term; it does not estimate early-payoff savings.
How can I compare two monthly payments?
Hold the amount borrowed and rate constant to isolate the effect of the term. To express a payment difference relative to the first payment, use our percentage change calculator. Browse the financial calculator library for other planning tools.
*National Savings Rate Average as published by FDIC