Finance Calculator
Monthly Car Payment Calculator
Estimate your monthly auto loan payment with vehicle price, down payment, trade-in, taxes, fees, APR, and loan term. See total interest, total loan cost, and a visual payoff chart.
for a $32,000 car, $4,000 down, 6.5% APR, and a 60-month loan.
Auto loan estimator
Calculate your monthly car payment
Enter your auto loan details to estimate your payment.
Loan breakdown
Auto Loan Payoff Chart
Balance reduction over the full loan term.
Amortization summary
| Month | Payment | Principal | Interest | Balance |
|---|
How it works
What this monthly car payment calculator does
This calculator estimates your monthly auto loan payment after considering the vehicle price, down payment, cash rebate, trade-in value, trade-in loan balance, sales tax, fees, APR, and loan term.
It also shows total interest, total amount paid, net trade-in value, and a payoff chart so you can understand the full cost of financing instead of looking only at the monthly payment.
Formula
Monthly car payment formula
1. Loan amount
The calculator first estimates the amount you need to finance after down payment, rebate, net trade-in, sales tax, and fees.
Loan amount = Price + Tax + Fees - Down payment - Rebate - Net trade-in 2. Monthly payment
For a standard fixed-rate auto loan, the payment is based on the loan amount, monthly interest rate, and number of months.
Payment = P × r × (1 + r)^n / ((1 + r)^n - 1) 3. Total interest
Total interest is the total of all monthly payments minus the original loan amount.
Total interest = Monthly payment × Term - Loan amount Examples
Monthly car payment examples
Example 1: Standard auto loan
A $32,000 car with $4,000 down, $3,500 net trade-in, 6% sales tax, $1,200 fees, 6.5% APR, and a 60-month term gives an estimated payment close to the calculator result.
Example 2: Longer term
Switching from 60 months to 72 or 84 months can reduce the monthly payment, but the total interest usually becomes higher.
Example 3: Bigger down payment
Increasing the down payment reduces the loan amount. This usually lowers both monthly payment and total interest.
Guide
How to use this calculator
- Enter the car price. Use the selling price before tax and fees.
- Add down payment and rebate. Include cash you plan to pay upfront and any manufacturer or dealer discount.
- Enter trade-in details. Add the trade-in value and the amount still owed on your old car.
- Add tax, fees, APR, and term. Use your expected sales tax rate, dealer fees, interest rate, and loan length.
- Review the chart and schedule. Check how quickly the loan balance goes down and how much interest you may pay.
FAQ
Monthly Car Payment Calculator FAQ
How is a monthly car payment calculated?
A monthly car payment is calculated using the loan amount, interest rate, and loan term. The standard loan formula spreads the principal and interest across equal monthly payments.
Does this calculator include sales tax and fees?
Yes. You can include sales tax, title fees, registration fees, dealer fees, and other upfront costs to estimate a more realistic auto loan payment.
Does a bigger down payment lower my car payment?
Yes. A larger down payment reduces the amount you need to borrow, which can lower both the monthly payment and the total interest paid over the loan.
How does trade-in value affect my auto loan?
A positive trade-in value can reduce the amount financed. If you still owe money on your trade-in, the remaining balance may reduce your net trade-in or increase the new loan amount.
Is a longer car loan term better?
A longer loan term usually lowers the monthly payment, but it often increases total interest and can increase the risk of owing more than the car is worth.