Car Loan Calculator
Calculate your monthly car loan payment.
Enter vehicle price, down payment, interest rate, and loan term to estimate your payments.
Monthly Payment
Car loan payments are calculated using the standard amortization formula, the same used for mortgages and other fixed-rate loans.
Formula:
Monthly Payment = P × [r(1+r)^n] / [(1+r)^n - 1]
Where:
- P = Loan amount (price minus down payment)
- r = Monthly interest rate (annual rate / 12)
- n = Total number of payments (term in months)
Tips for getting the best car loan:
- A 20% down payment is ideal to avoid being upside-down on the loan
- Keep loan terms to 60 months or less to minimize total interest
- A credit score of 720+ typically gets the best rates
- Compare rates from banks, credit unions, and the dealership
Typical auto loan rates (2025–2026):
- Excellent credit (720+): 4–6%
- Good credit (660–719): 6–8%
- Fair credit (600–659): 8–12%
- New car loans tend to be 1–2% lower than used