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✦ Free Finance Tool

Car Payment Calculator

Estimate your monthly auto loan payment. Calculate total interest, loan cost, and see if you can afford the car with tax and fees included.

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Monthly Payment
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Loan Amount
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Total Interest
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Total Car Cost
Affordability
📋 Amortization Schedule (First 12 Months)
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🧮 How Car Payments Are Calculated

Your monthly car payment is determined by the loan amount, interest rate, and term length. The calculator uses the standard auto loan amortization formula to give you an accurate estimate.

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Loan Amount

Your loan amount is the car price minus your down payment and trade-in value, plus sales tax and fees. A larger down payment means a smaller loan and lower monthly payments.

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Interest & Term

Your interest rate depends on credit score, loan term, and market conditions. Longer terms lower monthly payments but significantly increase total interest paid over the life of the loan.

The 20/4/10 Rule

A common affordability guideline: put 20% down, finance for no more than 4 years, and keep total car expenses under 10% of your gross monthly income. Our calculator checks this automatically.

Frequently Asked Questions

How much car can I afford?
The 20/4/10 rule is a good guideline: put at least 20% down, finance for no more than 4 years, and keep your total monthly car expenses under 10% of your gross monthly income. Use our affordability check to see where you stand.
What factors affect my monthly car payment?
Your monthly payment depends on the car price, down payment, trade-in value, interest rate, loan term, sales tax, documentation fees, and any add-ons like fuel costs and insurance. A higher down payment or shorter term reduces your monthly payment.
Should I choose a shorter or longer loan term?
Shorter terms (36-48 months) have higher monthly payments but much lower total interest. Longer terms (60-84 months) lower the monthly payment but significantly increase total interest paid. Aim for 48 months or less if you can afford it.
How is car loan interest calculated?
Car loans use simple interest calculated monthly. Each month, interest is calculated on the remaining balance. As you pay down the principal, less interest accrues. This is why paying extra toward principal early saves you the most interest.