Auto Loan Calculator – Monthly Car Payment
Calculate your monthly car payment, total cost, and interest for any auto loan. Compare loan terms and rates.
🚗 Finance📐 M = P[r(1+r)^n]/[(1+r)^n-1]
Vehicle price ($)
Down payment ($)
Annual interest rate (%)
Loan term (months)
Please enter valid values.
Formula & Reference
| Variable | Formula | Units |
|---|---|---|
| Auto Loan Calculator – Monthly Car Payment | M = P[r(1+r)^n]/[(1+r)^n-1] | $/month |
Step-by-Step Examples
Example 1
$35K Car, $5K Down, 6.5%, 60mo
$30K loan, 6.5%, 60 months.
- Monthly: $585 | Total: $35,117
- Interest: $5,117
✓ $585/month
Example 2
$25K Used Car, 7%, 48mo
$25K, 7%, 48 months.
- Monthly: $597 | Interest: $3,681
✓ $597/month
Example 3
72-Month vs 60-Month
$30K at 6.5%: 72mo=$450/mo but $32,370 total vs 60mo=$585/mo and $35,117.
- Longer term: save $135/mo but pay $2,747 more total!
✓ 72mo costs $2,747 more
Real-World Applications
Car Buyers
Know your payment before you negotiate.
Dealers
Calculate payments for customers.
Budget Planners
Decide how much car you can afford.
Refinancers
Compare your current vs new auto rate.
Common Mistakes to Avoid
⚠️
Focusing only on monthly payment
Dealers exploit this. A longer term lowers the monthly payment but increases total cost significantly.
⚠️
Not shopping for rates
Auto loan rates vary 2-6% between lenders. Get pre-approved at your bank or credit union before visiting a dealer.
Frequently Asked Questions
Good auto loan rate? ▾
New car with 720+ score: 5-7%. Used car: 6-10%. Below 620 score: 15-25%+. Credit unions often beat banks and dealers.
0% APR — too good to be true? ▾
Manufacturer 0% deals are real but require excellent credit (760+) and usually mean you can't negotiate the price down.
How much car can I afford? ▾
Rule of thumb: monthly payment ≤ 15% of take-home pay. Total transportation costs (car, insurance, fuel) ≤ 20% of take-home.