Monthly Car Payment Calculator
Calculate your monthly payment, total interest, and full amortization schedule. Includes down payment, trade-in equity, cash rebates, sales tax, and registration fees.
Did our AI summary help? Let us know.
Shop rates firstโget pre-approved from a credit union before visiting the dealer. Negotiate price, not payment. Dealers can hide overpayment by extending the term. Compare total cost. A lower monthly payment with a longer term often costs more overall.
Ready to run the numbers?
Why: Understanding your monthly car payment helps you budget effectively and avoid overextending. A 1% lower APR on a $30,000 loan can save over $500 in total interest.
How: The calculator uses the PMT formula: principal, interest rate, and loan term. Down payment and trade-in reduce the amount financed. Longer terms lower monthly payments but increase total interest.
Run the calculator when you are ready.
๐ Sample Scenarios โ Click to Load
Vehicle & Loan Information
Visualizations
๐ Calculation Breakdown
Amortization Schedule
| Month | Payment | Principal | Interest | Balance | Cumulative Interest |
|---|---|---|---|---|---|
| 1 | $658 | $476 | $182 | $33,149 | $182 |
| 2 | $658 | $478 | $180 | $32,671 | $362 |
| 3 | $658 | $481 | $177 | $32,190 | $539 |
| 4 | $658 | $484 | $174 | $31,706 | $713 |
| 5 | $658 | $486 | $172 | $31,220 | $885 |
| 6 | $658 | $489 | $169 | $30,731 | $1,054 |
| 7 | $658 | $491 | $166 | $30,240 | $1,220 |
| 8 | $658 | $494 | $164 | $29,746 | $1,384 |
| 9 | $658 | $497 | $161 | $29,249 | $1,545 |
| 10 | $658 | $499 | $158 | $28,750 | $1,704 |
| 11 | $658 | $502 | $156 | $28,247 | $1,859 |
| 12 | $658 | $505 | $153 | $27,742 | $2,012 |
| 13 | $658 | $508 | $150 | $27,235 | $2,163 |
| 19 | $658 | $524 | $134 | $24,131 | $3,006 |
| 25 | $658 | $542 | $116 | $20,924 | $3,747 |
| 31 | $658 | $559 | $98 | $17,612 | $4,383 |
| 37 | $658 | $578 | $80 | $14,191 | $4,909 |
| 43 | $658 | $597 | $61 | $10,657 | $5,323 |
| 49 | $658 | $617 | $41 | $7,007 | $5,620 |
| 55 | $658 | $637 | $21 | $3,237 | $5,797 |
| 60 | $658 | $654 | $4 | $0 | $5,850 |
For educational purposes only โ not financial advice. Consult a qualified advisor before making decisions.
๐ก Money Facts
The average new car loan in the US is about $40,000 with a 67-month term.
A 1% lower APR on a $30,000 loan can save over $500 in total interest.
84-month loans now account for over 30% of new car financing.
The 20/4/10 rule: 20% down, 4-year max term, 10% of gross income for payment.
๐ Key Takeaways
- โข Monthly payment is calculated using the PMT formula: principal, interest rate, and loan term.
- โข Down payment and trade-in reduce the amount financed, lowering both monthly payment and total interest.
- โข Longer loan terms (72โ84 months) lower monthly payments but increase total interest paid.
- โข Sales tax and fees are typically added to the financed amount in most states.
๐ก Did You Know?
The average new car loan in the US is about $40,000 with a 67-month term.
โ Experian State of the Automotive Finance Market
A 1% lower APR on a $30,000 loan can save over $500 in total interest.
โ Consumer Financial Protection Bureau
84-month loans now account for over 30% of new car financing.
โ Edmunds 2024
Trade-in value reduces your taxable amount in most states, lowering sales tax.
โ State DMV guidelines
Used car APRs average 2โ3% higher than new car rates due to depreciation risk.
โ Federal Reserve G.19
The 20/4/10 rule: 20% down, 4-year max term, 10% of gross income for payment.
โ Consumer Reports
๐ How Auto Loan Payments Work
Auto loan payments use amortization: each payment covers interest first, then principal. Early in the loan, most of your payment goes to interest. As the balance shrinks, more goes to principal. The formula M = P ร [r(1+r)^n] / [(1+r)^n - 1] calculates a fixed monthly payment that pays off the loan exactly by the end of the term.
Amount Financed
Purchase price minus down payment, rebates, and trade-in equity, plus sales tax and fees.
PMT Formula
r = monthly rate (APR รท 12), n = number of payments. Produces equal monthly payments.
๐ฏ Expert Tips
โ๏ธ Why Use This vs Other Methods?
| Method | Pros | Cons |
|---|---|---|
| This Calculator | Full amortization, trade-in, rebates, taxes, fees | โ |
| Simple PMT formula | Quick estimate | Ignores taxes, fees, trade-in |
| Dealer quote | Convenient | May include add-ons, unclear breakdown |
| Bank/credit union | Pre-approval, competitive rates | May not include dealer fees |
โ FAQ
What is the PMT formula?
PMT = P ร [r(1+r)^n] / [(1+r)^n - 1], where P is principal, r is monthly interest rate, and n is number of payments. It calculates the fixed monthly payment for a fully amortizing loan.
Does a larger down payment always save money?
Yes. A larger down payment reduces the amount financed, which lowers both your monthly payment and total interest paid over the life of the loan.
How does trade-in affect my loan?
Trade-in value minus what you owe (net equity) reduces the amount you need to finance. In most states, it also reduces the taxable amount for sales tax.
Is a longer loan term better?
Longer terms (72โ84 months) lower monthly payments but increase total interest. Use a shorter term if you can afford the higher payment.
What fees are typically included?
Registration, title, and documentation (doc) fees are common. Some states also charge sales tax on the purchase price minus trade-in and rebates.
Can I pay off my auto loan early?
Most auto loans have no prepayment penalty. Paying extra principal reduces total interest. Check your loan agreement for specifics.
What is negative equity?
When you owe more on your trade-in than it's worth. Rolling this into a new loan increases the amount financed and total cost.
๐ Official Sources
โ ๏ธ Disclaimer
This calculator provides estimates only. Actual payments may vary based on lender terms, credit score, and dealer negotiations. Always verify figures with your lender before signing. Tax treatment of trade-ins and rebates varies by state.
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