Car Payment Calculator
Calculate monthly car payments for new and used vehicles. Compare loan terms, down payment options, and total cost of ownership.
Formula & Reference
| Variable | Formula | Units |
|---|---|---|
| Car Payment Calculator | Monthly Payment = Loan x [r(1+r)^n] / [(1+r)^n-1] | $/month |
Step-by-Step Examples
$35K, $5K down, 6.5%, 60 months, 7% tax.
- Tax: $2,450 | Loan: $32,450
- Monthly: $635
- Total interest: $5,623
$18K used, $2K down, 8%, 48 months.
- Loan: $16,000
- Monthly: $390
- Total interest: $2,713
$30K loan at 6%.
- 48 months: $704/mo, $3,782 interest
- 72 months: $496/mo, $5,701 interest
- 72-month saves $208/mo but costs $1,919 more interest
Real-World Applications
Common Mistakes to Avoid
A long loan term with a low payment costs significantly more total. A salesperson quoting $400/month on a 84-month loan may cost $5,000 more in interest than a 60-month loan.
Total monthly car cost includes: payment, insurance ($100-300), maintenance ($50-100), gas ($100-200), and registration. A $400 car payment can easily total $800-$1,000 per month in all costs.
Know your trade-in value (Carmax, KBB, Carvana offer quotes) before negotiating. Dealers often underpay on trade-ins; selling privately typically yields $1,000-$3,000 more.