Car Payment Calculator

How a car payment calculator works

Enter a negotiated car price, down payment, annual percentage rate (APR), and loan term to estimate a monthly payment. In Advanced mode, add taxes, dealer fees, registration, optional add-ons, and trade-in details. Results update in your browser, so you can compare scenarios before you review a written offer.

Whether you call it an auto payment calculator, car loan calculator, or car finance calculator, a monthly payment is only one part of a car’s cost. Check the amount financed, interest over the full term, and total loan payments too. A longer term can lower each bill while increasing total interest and the time you remain in debt.

How monthly car payments are calculated

For a fixed-rate loan, payment depends on principal, monthly interest rate, and number of payments. We convert the annual APR to a monthly rate by dividing it by 1,200, then apply: payment = principal × monthly rate ÷ [1 − (1 + monthly rate)^{−number of payments}]. At 0% interest, principal is divided evenly across the loan term.

Each payment first covers that month’s interest; the remainder reduces principal. The balance chart and amortization schedule show the change over time. Calculations retain precision internally and display dollars to cents.

How APR affects your payment

The calculator uses your entered APR as a fixed nominal rate. A lender’s disclosed APR can include certain finance charges, and contracts may use daily interest, different payment dates, or other rounding. Your actual payment may therefore differ. Use a written lender quote when available. Example rates are illustrative, not current market rates or credit offers.

Down payments, trade-ins, taxes, and fees

Down payment

Cash paid up front reduces the amount borrowed and usually reduces interest. Choose an amount that leaves enough savings for other expenses; a calculator cannot determine what is comfortable for your budget.

Trade-in value and loan payoff

Enter the offer for your trade and your lender’s payoff separately. Trade value reduces the new loan; payoff adds the old balance. If payoff is higher than trade value, the difference is negative equity. Rolling it into a new loan means borrowing more and paying interest on old debt. Ask your lender for a dated payoff quote.

Taxes and fees

Sales tax, dealer fees, title and registration, and optional products can raise the out-the-door price. Enter a verified local tax rate; we do not infer state or local taxes. Rules differ on rebates, trade credits, and taxable fees. Use the taxable-price adjustment only when verified, and ask the dealer for an itemized quote. Check which add-ons are optional.

Compare more than the monthly payment

Change one input at a time to see how price, APR, down payment, and term affect the estimate. Compare written offers using the amount financed, APR, term, monthly payment, total interest, and total outlay. Confirm that both quotes use the same vehicle price, taxes, trade equity, and add-ons; a payment alone can hide a longer term or products added to the loan.

Use our auto loan comparison calculator for two offers, the negative equity calculator for an unpaid trade-in, or compare 60, 72, and 84 month loans. The out-the-door car price calculator itemizes purchase costs before interest. Each calculator has its own formula, worked example, and assumptions. For help reviewing a quote, read our dealer quote guide.