Free Tool

Car Payment Calculator

Estimate your monthly car payment instantly. Same math your lender uses.

Loan details

Tips to lower your payment

Larger down payment

  • ~$20/mo savings per $1,000 down
  • Less interest over loan life
  • Reduces negative-equity risk

Shop the APR

  • Credit union quote first
  • Online lender quote second
  • Dealer quote last (for leverage)

Shorter term

  • 60 months → sweet spot
  • Avoid 72/84-mo loans
  • Pay off sooner, less interest

Frequently asked questions

How is my payment calculated?

Using the standard bank amortization formula: M = P×[r(1+r)n] / [(1+r)n−1], where P is loan principal, r is monthly interest rate (APR÷12), and n is number of monthly payments.

What counts as the principal?

Vehicle price minus down payment minus trade-in value, plus sales tax if you choose to roll the tax into the loan.

What loan term should I pick?

60 months is the traditional sweet spot. 72 and 84-month loans have lower monthly payments but pay far more interest and keep you underwater for years.

What APR should I use?

In 2026, major lenders quote 6-9% for excellent credit (720+), 9-13% for good credit (660-719), and 13-19%+ for fair credit. Get 3+ quotes before signing.

Before you finance, check the history

The cheapest way to avoid a bad loan is to avoid a bad car. Get the full Carfax for $4.50.

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