How do I calculate monthly car payments?

To calculate monthly car payments, you need the loan amount (vehicle price minus down payment and trade-in), annual percentage rate (APR), and loan term in months. The formula is: M = P × [r(1+r)^n] / [(1+r)^n-1], where M is monthly payment, P is principal, r is monthly interest rate (APR÷12÷100), and n is number of payments. Our auto loan calculator performs this calculation instantly.

What is APR in auto loans?

APR (Annual Percentage Rate) represents the total yearly cost of your auto loan, including the base interest rate plus additional fees and charges. Unlike simple interest rates, APR gives you the true cost of borrowing, making it easier to compare loan offers from different lenders. APR is always equal to or higher than the base interest rate.

Should I choose 36 or 72 months for my auto loan?

The choice between 36 and 72-month auto loans depends on your budget and financial goals. A 36-month loan means higher monthly payments but significantly less total interest paid over the loan term. A 72-month loan reduces monthly payments but increases total interest costs. Choose shorter terms if you can afford higher payments and want to save money overall, or longer terms if you need lower monthly payments to fit your budget.

How much should I put down on a car loan?

A typical down payment for an auto loan is 10-20% of the vehicle's purchase price. For a new car, 20% down is recommended to avoid being underwater on your loan immediately. For used cars, 10-15% is often sufficient. Larger down payments reduce your monthly payment, total interest paid, and help you qualify for better rates. However, don't deplete your emergency savings for a larger down payment.

Auto Loan Calculator

Calculate your monthly car payment instantly with our free auto loan calculator. Enter your loan amount, interest rate, and loan term to get accurate payment estimates and compare financing options.

Quick Example

Loan Scenario: $30,000 vehicle loan, 60 months, 5.0% APR
Monthly Payment: $566.14
Total Interest: $3,968.22

Loan Details

Vehicle Price

Down Payment

Trade-in Value

Amount Owed on Trade-in

Loan Term (Months)

APR (Annual Percentage Rate)

Sales Tax Rate (%)

Other Fees

Your Monthly Payment

$567.00

Total Loan Amount: $25,050.00

Total Interest: $9,020.00

Total Amount Paid: $40,070.00

Compare Loan Terms

Amortization Schedule

Frequently Asked Questions

How accurate is this auto loan calculator? +

Our car loan calculator provides accurate estimates based on the loan amount, APR, and term you enter. Actual payments may vary slightly due to fees, taxes, or different calculation methods used by lenders.

What information do I need to calculate my monthly car payment? +

To use our auto loan calculator, you'll need: vehicle price, down payment amount, trade-in value (if any), loan term (months), APR (interest rate), and your state's sales tax rate.

Should I choose a shorter or longer loan term? +

Shorter loan terms (36-48 months) mean higher monthly car payments but less total interest paid. Longer terms (60-72 months) reduce monthly payments but increase the total cost of your car loan calculator results.