Use this car loan calculator to estimate your monthly payments based on the car price, down payment, interest rate, and loan term. Adjust the inputs for the best financing option.

Formula

Monthly Payment = [Loan Amount – Down Payment] × [Interest Rate] / Loan Term

Example Calculation

$25,000 loan amount, $5,000 down payment, 5.5% interest rate, 5 years → Monthly Payment: $400

Why It Matters

Understanding your monthly payment helps you plan your budget and decide the best loan terms to match your financial goals.

Smart Strategy

Lower your down payment to reduce your loan amount, or opt for a longer term to decrease monthly payments. Just make sure it fits within your budget.

FAQs

How does down payment affect monthly payment? The higher your down payment, the lower your monthly payment will be.

Is the interest rate fixed? Most auto loans come with fixed interest rates, meaning your payment amount will remain consistent throughout the term.