How it works
Estimate your car payment, interest, and total cost of an auto loan with an optional down payment.
Enter the vehicle price, an optional down payment, the annual interest rate, and the term. The calculator subtracts the down payment to find the amount financed and uses the standard amortization formula to compute the monthly payment.
Formula
M = L × r × (1 + r)^n ÷ ((1 + r)^n − 1), where L = price − down payment, r = annual rate / 12, and n = years × 12.
L- Amount financed (price − down payment) (currency)
r- Monthly interest rate (annual % / 12)
n- Number of monthly payments (months)
Examples
- 30,000 car with 5,000 downPrice 30,000 · down payment 5,000 · rate 4.5% · term 4 yearsAmount financed 25,000 · monthly ≈ 570.09 · total interest ≈ 2,364.18
Frequently asked questions
Should I include taxes and fees?
Add estimated taxes and fees to the vehicle price for a more complete payment figure. This calculator only models the financed amount.
What term should I choose?
Shorter terms have higher payments but less total interest. Longer terms lower the payment but cost more overall.
How to read the result
Amount financed is what you actually borrow. Monthly payment and total interest reflect the full fixed-rate loan, not trade-in value or rebates unless you reduce the price.
Limitations
Assumes a fixed rate and equal payments and a single down payment. Does not include trade-in credits, sales tax, registration, dealer fees, or insurance.
Source: Fixed-rate amortization formula (standard consumer-credit formula).