Estimate your monthly car payment including down payment and trade-in
Typical: 4-15% depending on credit
Monthly Payment
$0.00
Loan Amount: $0.00
Total Interest
$0.00
Total Paid
$0.00
Total Cost
$0.00
Total Down
$0.00
A car payment calculator is a financial tool that helps you estimate your monthly auto loan payment. It takes into account the car's purchase price, your down payment, trade-in value, interest rate, and loan term to calculate the exact monthly payment.
Understanding your car payment before visiting a dealership gives you negotiating power. You'll know exactly what you can afford and won't be swayed by sales tactics that focus on monthly payments rather than total cost.
The calculator also reveals the true cost of your car—including total interest paid over the loan term. Many buyers focus only on the monthly payment and overlook how much the car actually costs after interest.
Calculating a car payment uses the amortization formula. Here's the process:
Loan Amount = Car Price − Down Payment − Trade-In
Monthly Payment = P × [r(1+r)^n] ÷ [(1+r)^n − 1]
Total Interest = (Monthly Payment × n) − Loan Amount
Total Paid = Monthly Payment × n
Total Cost = Down Payment + Trade-In + Total Paid
$30,000 car with $5,000 down at 7% for 60 months:
| Car Price | $30,000.00 |
| Down Payment | −$5,000.00 |
| Trade-In | −$0.00 |
| Loan Amount | $25,000.00 |
| Interest Rate | 7% |
| Term | 60 months |
| Monthly Payment | $495.03 |
| Total Interest | $4,701.80 |
| Total Cost | $34,701.80 |
The interest rate and APR are related but distinct concepts. The interest rate is the basic cost of borrowing, expressed as a percentage. APR includes the interest rate plus all fees—origination fees, documentation fees, and other charges—giving the true annual cost of the loan.
When comparing car loans, always compare APRs rather than interest rates. A loan with a lower interest rate but high fees may actually be more expensive than a loan with a higher rate and no fees.
Car dealers sometimes use "low interest rate" promotions that include hidden fees. Always ask for the APR to get the true cost of the loan.
The loan term is the length of time you have to repay the car loan. Terms typically range from 36 to 84 months. The term significantly affects both your monthly payment and total interest.
Longer terms mean lower monthly payments but more total interest. Here's how different terms affect a $25,000 loan at 7%:
The down payment is the upfront amount you pay toward the car purchase. Financial experts recommend 20% down on new cars and 10% on used cars. A larger down payment reduces the loan amount, which lowers monthly payments and total interest.
Here's how different down payments affect a $30,000 car at 7% for 60 months:
Trade-in value is the amount a dealer will give you for your current car. This amount reduces the loan amount, just like a down payment. However, trade-in values are often lower than private sale values.
Before trading in your car, research its value using online tools. You might get significantly more by selling privately, though trading in is more convenient and may provide tax benefits in some states.
A trade-in of $10,000 on a $30,000 car reduces your loan to $20,000, cutting your payment by about $200 per month.