Car Payment Calculator
Free car payment calculator: enter vehicle price, down payment, APR, and loan term to get your monthly auto loan payment, total interest, and total cost.
Updated 2026-06-14 · Free · No sign-up · Runs privately in your browser
Show the formula & steps
How the Car Payment Calculator Works
This calculator turns a vehicle price into a real monthly payment. Enter the vehicle price, your down payment plus trade-in, the APR, and the loan term in months, and it returns your monthly payment, the total interest, and the total of all payments.
How it works
First the tool finds the amount you actually borrow, then applies the standard amortization formula:
Amount financed (P) = price − down payment − trade-in Monthly payment = P × i ÷ (1 − (1 + i)^−n)
where i is the APR divided by 12 and n is the term in months. Each payment covers that month’s interest first, with the rest reducing the balance.
Worked Example
Suppose you buy a $30,000 car, put $5,000 down, finance at 6.5% APR over 60 months:
- Amount financed = 30,000 − 5,000 = $25,000
- Monthly rate i = 6.5% ÷ 12 = 0.5417%, term n = 60
- Monthly payment ≈ $489.15
- Total of payments = 489.15 × 60 = $29,349
- Total interest ≈ $4,349
How the Term Changes the Cost
| Term | Monthly payment | Total interest |
|---|---|---|
| 36 months | $766.23 | $2,584 |
| 48 months | $592.87 | $3,458 |
| 60 months | $489.15 | $4,349 |
| 72 months | $420.25 | $5,258 |
(Based on $25,000 financed at 6.5% APR.)
Smart Borrowing Tips
- Shorten the term if you can. A higher monthly payment usually means thousands less in interest.
- Negotiate price and rate separately. A lower price and a lower APR both shrink the payment, but in different ways.
- Add tax and fees to the price. Include them up front so the payment you see is the payment you get.
Frequently asked questions
How is a monthly car payment calculated?+
Subtract your down payment and trade-in from the price to get the amount financed, then apply the standard loan formula: payment = P × i ÷ (1 − (1 + i)^−n), where i is the monthly interest rate and n is the number of months. This calculator handles the math for you.
How does the loan term affect my payment?+
A longer term lowers the monthly payment but increases the total interest you pay, because you borrow the money for longer. A 72-month loan has smaller payments than a 48-month loan but costs more overall.
Does a bigger down payment reduce my payment?+
Yes. A larger down payment or trade-in lowers the amount financed, which reduces both your monthly payment and the total interest. It can also help you qualify for a better rate.
What APR should I expect on a car loan?+
Auto loan APRs depend on your credit score, loan term, and whether the car is new or used. Borrowers with strong credit often see single-digit rates, while lower scores pay more. Get a pre-approval to know your real rate.
Does this include taxes, fees, and insurance?+
No. The calculator covers principal and interest only. Sales tax, registration, dealer fees, and insurance are extra. To include taxes and fees, add them to the vehicle price before calculating.