Use this calculator to estimate your monthly car payment based on the vehicle price, interest rate, loan term and down payment. You can also see how much of your total cost is principal versus interest.
A longer term can free up cash in your monthly budget, but you pay significantly more interest over time. If your budget allows it, choosing the shorter term keeps your total borrowing cost lower.
A standard car loan is an installment loan. You borrow a lump sum, then repay it with fixed payments over a set number of months. Each payment has two parts: principal (the amount you borrowed) and interest (the cost of borrowing).
Most auto lenders use a level payment schedule called an amortizing loan. The monthly payment is calculated from four key inputs:
In the background, the calculator uses the standard loan payment formula. When you increase the amount financed or the APR, the payment goes up. When you increase the term, the payment usually goes down, but you spread the interest over more months and tend to pay more total interest over the life of the loan.
Taxes and fees do not change how the loan math works, but they do change how much you borrow. Rolling more costs into the loan instead of paying them in cash will usually increase both your monthly payment and the total interest paid.
Several levers have an outsized impact on how affordable a car loan feels month to month. Understanding each one can help you decide which trade offs make sense for your budget.
When you adjust numbers in the calculator, try changing just one thing at a time. For example, hold the price and down payment steady and see how much a better APR or a shorter term changes the total interest. Then go back and experiment with a less expensive car or a larger down payment to see how they compare.
Picking a loan term is one of the most important choices you make with a car loan. It directly affects how comfortable the monthly payment feels and how much interest you pay over time.
Shorter terms usually mean:
Longer terms usually mean:
Many personal finance experts suggest keeping your auto loan term at 60 months or less for new cars and even shorter for used cars when possible. That is not a hard rule, but it highlights the trade off between short term comfort and long term cost.
| Example term | Pros | Cons |
|---|---|---|
| 36 months | Very fast payoff, least interest paid, equity builds quickly. | Highest payment, may be hard to fit in a tight budget. |
| 60 months | Common balance of payment size and total interest. | You still pay more interest than a shorter term. |
| 72 to 84 months | Lowers the payment the most, can make a more expensive car seem affordable. | Often much more total interest, and you may be upside down for years. |
A good starting point is to work backward from your budget. Decide how much room you realistically have for a car payment each month, then adjust the term, price and down payment until the calculator shows a payment that fits, without stretching the term longer than you are comfortable with.
There is no single APR that is "good" for everyone, because rates depend on your credit profile, the age of the car, the length of the loan and market conditions. In general, borrowers with strong credit scores, stable income and low existing debt tend to qualify for lower APRs, while borrowers with limited or damaged credit see higher APRs.
When you compare offers, focus on:
Instead of chasing a specific number, compare several prequalified offers from banks, credit unions, online lenders and dealer financing. Look at APR, term, total interest paid and the monthly payment together. Your goal is to find a combination that you can afford comfortably without paying more in interest or fees than necessary.
If the APR you are offered seems high, you may be able to improve it over time by paying bills on time, lowering other debts, building a longer credit history and avoiding late payments or collections. With a stronger credit profile, you may qualify for a better rate on your next car or even refinance an existing loan if the numbers make sense.
A lower payment is not always better if it pushes you into a more expensive car or a very long term. Instead, use a combination of strategies that reduce both your monthly payment and the total cost of borrowing.
As you adjust the numbers, pay attention not only to the "Estimated monthly payment" but also to the total cost of the loan and how long you plan to keep the car. A deal that looks good month to month might be much less attractive when you look at the long term interest cost.
To calculate a car loan payment, you start with the amount financed, the APR and the number of months in the term. The standard loan payment formula is applied so that each payment is the same amount, but the split between principal and interest changes over time. Early payments are mostly interest, while later payments are mostly principal.
Most people do not calculate this by hand. A calculator like the one above lets you enter your numbers and see the monthly payment, the total interest and how changes to price, down payment, APR or term move those results.
In spreadsheets, the payment is usually calculated with the PMT function. You enter the periodic interest rate (APR divided by 12 for monthly payments), the number of periods (months in the term) and the amount financed as a negative value. The function returns the monthly payment needed to pay the loan off in full, assuming a level payment schedule.
This calculator uses the same underlying math, but you do not need to remember the exact formula. You can simply adjust the inputs and watch the results update.
No. The calculator focuses on your loan payment and the cost of borrowing. Insurance, fuel, parking, tolls, repairs and maintenance are separate costs that you should also consider in your budget. A car that fits your loan payment but is very expensive to insure or maintain may still stretch your finances.
Many auto loans allow you to pay extra toward principal or pay off the loan early without a penalty, but not all. Check your loan contract for any prepayment fees or restrictions. If there is no penalty, paying extra each month or making one time principal payments can reduce the total interest you pay and shorten the life of the loan.
Refinancing may be worth exploring if rates have dropped, your credit has improved since you took out the loan, or you want to adjust the term. A good refinance lowers your APR, reduces total interest or gives you a more comfortable payment without stretching the term so far that you pay much more interest over the long run. Always compare the new payment, new term and total interest against your current loan before deciding.