Included in the estimate
- Vehicle price
- Down payment
- APR
- Loan term
Car payment calculator
Estimate a monthly car payment from four numbers. The calculation stays in your browser, and nothing is sent or saved.
How this estimate works
Start with the vehicle price and subtract the down payment. The result is the amount financed: the principal used in this estimate. To see what a larger deposit is worth, read the guide to car down payments.
APR, or annual percentage rate, expresses the yearly cost of borrowing as a percentage. The loan term is how many months you have to repay the loan; the guide to choosing a car loan term compares common lengths. Together, the amount financed, APR, and loan term determine the estimated monthly payment for a fixed-rate loan. To see what a rate difference is worth, read the guide to car loan APR.
Total interest is the sum of the estimated payments minus the amount financed. It is the estimated borrowing cost over the selected term, not including fees or other costs.
The calculation
Fixed-rate loan formula
M = P × [r(1 + r)n] ÷ [(1 + r)n − 1]
M is the monthly payment, P is the amount financed, r is the monthly interest rate (APR divided by 12 and expressed as a decimal), and n is the number of monthly payments. When APR is 0%, the calculator divides the amount financed evenly across the term.
For a step-by-step walkthrough with a worked example, read the guide to how car payments are calculated.
What to enter
Included and excluded costs
Not included
- Sales tax and registration
- Dealer, title, and documentation fees
- Insurance, fuel, and maintenance
- Optional products or service contracts
If a lender finances taxes or fees, add them to the vehicle price for a closer planning estimate. Confirm the final figures with the seller and lender before signing.
Common questions
Car payment FAQ
Does a larger down payment lower the monthly payment?
Yes. A larger down payment reduces the amount financed, so the estimated monthly payment and total interest are usually lower when the APR and term stay the same.
How does the loan term affect the estimate?
A longer term usually lowers the monthly payment but can increase total interest. A shorter term usually raises the monthly payment but can reduce total interest.
Is this the payment a lender will offer?
No. This is a planning estimate, not a loan offer. A lender may use different amounts, rates, fees, dates, and rounding.
Are my numbers saved?
No. The calculator runs in your browser and does not send or store the values you enter.