Free Car Payment Calculator

Calculate your monthly car payment based on vehicle price, down payment, interest rate, and loan term.

USD
USD
%

Monthly Payment

$586.98

Total Amount Paid$40,219.07
Total Interest$5,219.07

Monthly Payment vs Interest Rate (APR)

How Car Payments Are Calculated

Car loans use the same amortization formula as any installment loan.

Formula

M = P x [r(1+r)^n] / [(1+r)^n - 1]

Where P = loan amount, r = monthly rate, n = number of months.

Example Calculation

$35,000 vehicle, $5,000 down, 6.5% APR, 60-month term.

  1. 01Loan amount = $35,000 - $5,000 = $30,000
  2. 02Monthly rate = 6.5% / 12 = 0.5417%
  3. 03Monthly payment = $30,000 x [0.005417 x 1.005417^60] / [1.005417^60 - 1] = $586.68
  4. 04Total paid = $586.68 x 60 + $5,000 = $40,200.80
  5. 05Total interest = $586.68 x 60 - $30,000 = $5,200.80

Frequently Asked Questions

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