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Car payment calculator
A car payment is calculated from the amount financed, monthly interest rate, and number of payments. Build the amount financed from the vehicle price, trade-in, tax, and fees, or work backward from a target payment. Everything runs in your browser, and Debtless does not send or save the numbers you enter.
Estimate a monthly car payment
Enter your tax rate and interest rate, check the purchase details, then calculate.
- Trade-in equity
- Sales tax
- Amount financed
- Monthly payment
- Total interest
- Total of payments
- Total cash outlay
Total cash outlay is the down payment plus all loan payments. It excludes the value of the trade-in and ownership costs such as insurance, maintenance, and registration.
Compare common loan terms
These rows use the same calculated amount financed and the interest rate you entered. Only the term changes.
| Term | Monthly payment | Total interest | Total of payments |
|---|
See year-by-year amortization
The schedule groups the selected loan term by year. The last row may cover fewer than 12 months.
| Year | Payments | Principal | Interest | Ending balance |
|---|
Calculate amount financed by payment
Enter a target principal-and-interest payment, rate, and term, then calculate.
- Estimated amount financed
- Total interest
- Total of payments
This is not an affordability limit. Vehicle taxes, registration, insurance, maintenance, and other ownership costs are outside the reverse calculation.
How this estimate differs from a lender quote
The calculator uses the vehicle price or target payment, loan term, APR, and down payment you enter. Taxes and financed fees affect the result only when you enter them; unentered taxes, fees, dealer add-ons, and lender-specific terms are excluded.
Use the car-loan payoff guide to estimate a payoff date after the lender gives you a current balance, rate, and payment.
Formulas and assumptions
Trade-in equity is trade-in value minus the amount still owed. Sales tax is the rate you enter multiplied by either the vehicle price or, when you choose that option, the vehicle price minus trade-in value, with the taxable price never below zero. Amount financed is vehicle price plus sales tax and financed fees, minus the down payment and trade-in equity.
For a rate above 0%, the monthly payment is P × r ÷ (1 − (1 + r)−n). The reverse calculation is payment × (1 − (1 + r)−n) ÷ r. P is the amount financed in dollars, r is the annual interest rate percentage divided by 100 and then by 12, and n is the number of monthly payments. At 0% interest, payment is P ÷ n and amount financed is payment × n.
- No tax treatment is assumed. Enter your rate and choose whether trade-in value reduces the taxable price based on the rule that applies to your purchase.
- The estimate assumes a fixed interest rate, equal monthly payments, and no separate fees or skipped payments. APR can include fees and differ from the interest rate; use the contract interest rate for this principal-and-interest estimate.
- A target payment is not proof that a loan is affordable. Compare the result with the lender's Truth in Lending disclosure before signing; the contract controls the actual payment.
Source check: the Consumer Financial Protection Bureau explains fixed-payment auto-loan amortization and the amount financed, finance charge, monthly payment, and total-of-payments disclosures.
For more context, read what a Bankrate-style auto calculator shows and misses and what to check before you sign.
Car payment calculator questions
How is a car payment calculated?
A fixed car payment is calculated from the amount financed, the monthly interest rate, and the number of monthly payments. At 0% interest, the amount financed is divided evenly by the number of payments.
Does this calculator include sales tax and a trade-in?
Yes. Enter the sales tax rate, trade-in value, and amount still owed on the trade-in. Choose whether the trade-in value reduces the taxable price based on the rule that applies to your purchase.
What does negative trade-in equity do to a car payment?
Negative trade-in equity means the amount still owed is greater than the trade-in value. The difference increases the amount financed when it is rolled into the new loan, which can raise the monthly payment and total interest.
Why does a longer loan term lower the payment but raise total interest?
A longer term spreads the amount financed across more payments, so each payment is smaller. Interest accrues across more months, which usually raises the total interest when the amount financed and rate stay the same.
Turn the estimate into a payoff plan
Debtless does not price a new loan or set a card issuer's minimum. Once you know the real balance, APR, and required payment, use the debt payoff calculator to compare payoff orders and extra-payment scenarios, or keep the plan in the free iPhone app.
