Car Payment Calculator
Find the monthly car payment for a given loan amount, interest rate and term.
Formula and sources updated · Data sources · 1View algorithm, constants and default inputs (JSON)
Breakdown
About this calculator
Estimate a fixed-rate principal-and-interest payment and total interest from the entered amount, APR and term. Taxes, fees, insurance and lender terms are excluded.
Worked example
calculated with the default values below
Loan amount 25,000 $ · Annual interest rate 7 % · Loan term 60 months · Your monthly budget (optional) 450 $ Monthly principal and interest (estimate) 495.03 $ · Total interest 4,701.80 $ · Total of payments 29,701.80 $ · Loan supported by your budget 22,726 $
Data sources
Disclaimer
These calculators give estimates for general information only. Real fuel consumption, performance and range vary with driving style, load, terrain, temperature and vehicle condition. Do not rely on these results for towing limits, payload or braking decisions — use the rating plate of your vehicle.
Implementation source
This record describes the implementation used by this page. It is not independent validation. External references, when available, support only the stated formula or definition; estimates and custom rules retain their own assumptions.
Formula and variables
M = P × r ÷ (1 − (1 + r)^−n), r = APR ÷ 100 ÷ 12
- M
- Monthly payment
- P
- Loan amount (principal)
- r
- Monthly interest rate
- n
- Number of months
- APR
- Annual interest rate (%)
APR is entered as a percent (7 means 7%); it is divided by 100 and 12. At 0%, M = P ÷ n.
Frequently asked questions
Why does a longer loan term let you 'afford' a pricier car?
Stretching the term lowers the monthly payment, so the same $450 budget supports a larger loan, about $22,700 at 7% over 60 months here. The tool inverts the usual payment formula, budget × (1 − (1+r)^−n) ÷ r, to find that maximum loan. The trap is total interest: a 72-month term raises the car you can 'afford' but adds years of interest, and you stay underwater on the loan longer as the car depreciates.