Monthly Car Payment Calculator
Calculate monthly car loan payment from vehicle price, trade-in, down payment, APR, and term.
Shows total interest and amortization for 24 to 84 months.
Monthly car loan payments are calculated using the standard amortizing loan formula, the same formula used by banks and credit unions worldwide:
M = P × [r(1+r)^n] / [(1+r)^n − 1]
Where:
- M = Monthly payment
- P = Principal (loan amount = Purchase Price − Down Payment − Trade-in)
- r = Monthly interest rate = Annual Rate / 12
- n = Total number of payments = Loan Term (years) × 12
Total Cost of Loan:
Total Paid = M × n
Total Interest Paid = Total Paid − P
Worked Example:
- Car price: $28,000
- Down payment: $3,000
- Trade-in: $2,000
- Principal P = $28,000 − $3,000 − $2,000 = $23,000
- Annual rate: 6.5% → Monthly rate r = 6.5/12/100 = 0.005417
- Term: 60 months
- M = 23,000 × [0.005417 × (1.005417)^60] / [(1.005417)^60 − 1]
- (1.005417)^60 ≈ 1.3829
- M = 23,000 × [0.005417 × 1.3829] / [1.3829 − 1]
- M = 23,000 × 0.007491 / 0.38284 = 23,000 × 0.019566 ≈ $450.02/month
Total paid = $450.02 × 60 = $27,001 Total interest = $27,001 − $23,000 = $4,001
So the loan costs about 17.4% of the amount borrowed in interest. That ratio is the number worth carrying around: at 6.5% over five years, roughly a sixth of what you borrow goes to the lender.
Reference: the average new car loan in 2024 was around $40,657 at 7.1% over 68 months, which works out to about $728/month.
Why term matters more than people expect. Take the same $25,000 at 6.5%. Over 48 months the payment is $593 and total interest is $3,458. Stretch it to 72 months and the payment falls to $420, which feels like a win, but total interest rises to $5,258. You pay $1,800 more for the privilege of a smaller bill, and you spend two extra years owing money on a depreciating asset. The monthly number is what dealers negotiate on, because it is the one that hides the total.
One thing this calculator does not include: sales tax, registration and dealer fees. Those are usually rolled into the amount financed, so the real loan is larger than the sticker price minus your down payment. Add them to the vehicle price before entering it if you want an accurate payment.
How we build and check this calculator
This calculator runs entirely in your browser, so the numbers you enter stay on your device. The math behind it is written by hand and tested against worked examples and standard references before the page goes live.
SuperGlobalCalculator is independently built and maintained. See how we build and verify our calculators.