Car Payment Calculator - Monthly Auto Payment

Car Payment Calculator - Calculate Monthly Car Payments

Calculate your monthly car payment instantly with our free car payment calculator. Estimate your auto loan payment including principal and interest for any vehicle purchase.

How to Calculate Your Car Payment

Enter the following information:

• Car Price: The total price of the vehicle
• Down Payment: Amount you're paying upfront
• Loan Term: Length of the loan in months
• Interest Rate: Annual percentage rate (APR)

Car Payment Formula

M = P × [r(1 + r)^n] / [(1 + r)^n - 1]

Where:

• M = Monthly payment
• P = Principal (loan amount)
• r = Monthly interest rate (annual rate / 12)
• n = Number of payments

Example Car Payment Calculation

Car Price: $30,000
Down Payment: $6,000
Loan Amount: $24,000
Interest Rate: 7.5% annual (0.625% monthly)
Term: 60 months

Monthly Payment = 24,000 × [0.00625(1.00625)^60] / [(1.00625)^60 - 1]
Monthly Payment = $480.68

Common Loan Terms Compared

For a $30,000 car with $6,000 down at 7.5% APR:

Term	Monthly Payment	Total Interest	Total Cost
36 months	$745.91	$2,852.76	$26,852.76
48 months	$580.72	$3,874.56	$27,874.56
60 months	$480.68	$4,840.80	$28,840.80
72 months	$414.27	$5,827.44	$29,827.44

Interest Rate Impact

For a $24,000 loan over 60 months:

Rate	Monthly Payment	Total Interest	Total Cost
5%	$452.73	$3,163.80	$27,163.80
7.5%	$480.68	$4,840.80	$28,840.80
10%	$509.76	$6,585.60	$30,585.60
15%	$571.52	$10,291.20	$34,291.20

Down Payment Benefits

On a $30,000 car at 7.5% APR for 60 months:

Down Payment	Loan Amount	Monthly Payment	Total Interest
$0 (0%)	$30,000	$600.85	$6,051.00
$3,000 (10%)	$27,000	$540.76	$5,445.90
$6,000 (20%)	$24,000	$480.68	$4,840.80
$9,000 (30%)	$21,000	$420.60	$4,235.70

Tips for Getting the Best Car Loan

Before You Shop:

• Check your credit score and fix errors
• Get pre-approved from multiple lenders
• Research current interest rates
• Calculate your budget beforehand
• Consider dealer financing vs. bank/credit union

At the Dealership:

• Negotiate the car price first
• Discuss financing separately
• Watch for add-ons and extended warranties
• Read all terms carefully
• Don't focus only on monthly payment

Average Interest Rates by Credit Score:

• Excellent (720+): 5-7% for new cars
• Good (660-719): 7-10% for new cars
• Fair (620-659): 10-15% for new cars
• Poor (<620): 15-20%+ for new cars

Lease vs. Buy Comparison

Buying (Financing):

• Higher monthly payments
• Build equity over time
• No mileage restrictions
• Own the vehicle outright after loan
• Can sell or trade in anytime

Leasing:

• Lower monthly payments
• No equity buildup
• Mileage restrictions (10-15k/year)
• Return vehicle at end
• Can lease new car every few years