Car Payment Calculator

Your monthly payment is calculated using the loan amount (car price minus down payment and trade-in equity), interest rate, and loan term. The formula accounts for compound interest over the life of the loan. See also our RV Loan Calculator.

Including taxes and fees in your loan increases the total amount borrowed and interest paid over time, but reduces your upfront cash needed. Consider your available cash and the impact on your monthly payment.

A larger down payment reduces your loan amount, resulting in lower monthly payments and less total interest paid. It may also help you qualify for better interest rates and avoid being upside-down on the loan.

Trade-in value is what your current car is worth. Amount owed is your remaining loan balance. If you owe more than the car's worth, you have negative equity that adds to your new loan amount. You might also find our Auto Lease Calculator useful.

Shorter terms mean higher monthly payments but less total interest paid. Longer terms reduce monthly payments but increase total interest costs. Choose based on your budget and financial goals.

Auto loan rates vary based on your credit score, loan term, new vs used vehicle, and lender. Rates typically range from 3-15%, with excellent credit scoring the lowest rates.

Financial experts recommend keeping your total vehicle expenses (payment, insurance, maintenance) under 20% of your take-home pay, with the payment alone being 10-15% maximum.

Most auto loans allow early payoff without penalties. Paying extra toward principal reduces total interest paid and shortens the loan term. Check your loan terms for any prepayment restrictions. Check out our Buy Here Pay Here Calculator as well.