A car payment is the amount you owe each month on an installment loan until the car is paid off. It depends on only four things: how much you borrow, the interest rate, the length of the loan, and the sales tax added to the price. This car payment calculator takes the vehicle price, your down payment, the sales tax rate, the APR and the term in months, and gives back the monthly payment, the amount you finance, the interest you will pay and the total cost of the car including your down payment.
How to use the car payment calculator
- Enter the vehicle price — the agreed price before tax. If you plan to roll fees into the loan, add them to the price.
- Enter your down payment, including any cash rebate you apply. Use 0 if you are putting nothing down.
- Enter the sales tax rate for the place you register the car. Enter 0 if you want to see the payment on the price alone.
- Enter the APR and the term in months, taken from a written loan offer if you have one.
The result shows the monthly payment first. Below it you will find the cost of the loan broken down, and a handy figure called the payment per $1,000 financed, which lets you scale any loan in your head: a loan twice as large costs twice as much per month at the same rate and term.
Car payment formula
Monthly payment P = F × r ÷ (1 − (1 + r)−n), where r = APR ÷ 1200 and n = months
Total interest = P × n − F
Total cost of the car = P × n + down payment
This is the standard amortization formula for a fixed-rate loan with equal monthly payments. Each payment first covers the interest that built up on the remaining balance in the past month, and the rest reduces the balance. Early payments are mostly interest; late payments are mostly principal. When the APR is 0%, there is no interest and the payment is simply F ÷ n.
Worked example
You agree to buy a car for $30,000. Sales tax is 6%, you put $3,000 down, and you take a 60-month loan at 6% APR.
- Price with tax: 30,000 × 1.06 = $31,800.
- Subtract the down payment: amount financed = 31,800 − 3,000 = $28,800.00.
- Monthly rate r = 6 ÷ 1200 = 0.005, and n = 60.
- Payment = 28,800 × 0.005 ÷ (1 − 1.005−60) = $556.78.
- Total of payments = $33,407.08, so interest = $4,607.08.
- Total cost including the down payment = $36,407.08.
Monthly payment by loan amount and term
Payment at 6% APR for common amounts financed, computed with the formula above.
| Amount financed | 36 months | 48 months | 60 months | 72 months | 84 months |
|---|---|---|---|---|---|
| $10,000 | $304.22 | $234.85 | $193.33 | $165.73 | $146.09 |
| $20,000 | $608.44 | $469.70 | $386.66 | $331.46 | $292.17 |
| $30,000 | $912.66 | $704.55 | $579.98 | $497.19 | $438.26 |
| $40,000 | $1,216.88 | $939.40 | $773.31 | $662.92 | $584.34 |
| $50,000 | $1,521.10 | $1,174.25 | $966.64 | $828.64 | $730.43 |
Payment per $1,000 financed
Multiply the figure in the table by the number of thousands you borrow to estimate a payment at any loan size. For example, a $28,000 loan at 5% for 60 months is 28 × $18.87 = $528.39.
| APR | 36 months | 48 months | 60 months | 72 months | 84 months |
|---|---|---|---|---|---|
| 0% | $27.78 | $20.83 | $16.67 | $13.89 | $11.90 |
| 3% | $29.08 | $22.13 | $17.97 | $15.19 | $13.21 |
| 5% | $29.97 | $23.03 | $18.87 | $16.10 | $14.13 |
| 7% | $30.88 | $23.95 | $19.80 | $17.05 | $15.09 |
| 9% | $31.80 | $24.89 | $20.76 | $18.03 | $16.09 |
| 12% | $33.21 | $26.33 | $22.24 | $19.55 | $17.65 |
Choosing a term and a rate
Stretching a loan lowers the monthly payment but raises the interest, because you borrow the money for longer. Look at the 0% row above to see the pure effect of the term, and at the 12% row to see how quickly interest adds up. Before you commit to a payment, compare the total interest of two or three terms rather than only the monthly figure. For a fuller picture that includes a trade-in, fees and extra payments, use the auto loan calculator; to see whether the payment fits your income, try the car affordability calculator.
What this calculator does not include
- Insurance, fuel, maintenance and registration renewals — these are separate monthly costs.
- Dealer fees and add-ons — add them to the vehicle price if you finance them.
- Trade-in value and any balance owed on a trade — the car trade-in calculator handles those.
- Lender-specific methods. Most fixed-rate auto loans match the monthly formula closely; check your contract if yours uses a different interest method.
Frequently asked questions
How is a car payment calculated?
The payment is F × r ÷ (1 − (1 + r)^−n), where F is the amount financed, r is the APR divided by 1,200 and n is the number of months. Financing $28,800 at 6% for 60 months gives $556.78 a month.
How much is a car payment on a $30,000 car?
With $3,000 down, 6% tax, 6% APR and 60 months it is about $556.78 a month. The payment changes with the rate, term, down payment and tax, so enter your own numbers.
Does a longer loan term lower my payment?
Yes, but it raises the total interest. An 84-month term gives a lower payment than 60 months, yet you pay interest for 24 more months and stay in debt longer.
Is sales tax included in the car payment?
Only if you finance it. This calculator adds the tax you enter to the price before subtracting the down payment. Enter 0 to see the payment on the price alone.
Does the calculator include insurance?
No. Insurance, fuel, maintenance and registration are separate costs that come on top of the loan payment.