Car Payment Calculator

Our free car loan calculator generates a monthly payment amount and total loan cost based on vehicle price, interest rate, down payment and more.

Interest

1550

Interest

Interest is the dollar amount the credit will cost you.

Taxes

0

Taxes

The amount presented for taxes reflects the dollar amount of tax based on the MSRP and Tax Rate shown.

Estimated Total Cost (including taxes and interest)

31,550

Estimated Total Cost

The Estimated Total Cost is a summation of the Amount Financed, Finance Charge and Taxes and any cash down payment and/or net trade-in amount.

Vehicle Price

$

Vehicle Price

The Manufacturer Suggested Retail Price (MSRP) or “sticker price” is the recommended selling price for the vehicle. The Dealer may adjust the actual selling price, either higher or lower. The MSRP excludes transportation and handling charges, destination charges, taxes, title, registration, preparation and documentary fees, tags, labor and installation charges, insurance, optional equipment or packages and accessories.

Cash Down Payment

$

Cash Down Payment

The Down Payment is an up-front cash payment made when you purchase the vehicle that reduces the amount financed. This app uses a default cash down payment of 20% of MSRP.

Value of Rebates

$

Rebate Value

The Rebate Value is the value of your the rebates you apply for and recieve. .

Tax Rate

%

Tax Rate

The sales tax rate provided is for sample purposes only. This app uses a default tax rate of 0%. If you know the sales tax rate for your location, please enter it in the field provided.

Term

mo

Term

Term represents the repayment period in months for the amount financed. This app uses a default term of 60 months.

APR

%

APR

APR is the Annual Percentage Rate. Actual APR is based on the creditworthiness of the customer. Not all customers will qualify for the lowest rate.

Financing Disclosures ⨯

Numerical values are not an advertisement or offer for specific terms of credit. Payment amounts presented are estimates and are for illustrative purposes only. Actual vehicle price may vary by Dealer. The MSRP excludes transportation and handling charges, destination charges, taxes, title, registration, preparation and documentary fees, tags, labor and installation charges, insurance, optional products, equipment or packages and accessories.

Lease Transactions:

The amount due at lease signing is the amount to be paid by the lessee prior to or at signing of the lease or by delivery of the vehicle. It includes the first month’s payment, any acquisition fee, down payment, less any net trade-in amount. The Estimated Monthly Lease Payment shown is based on a 36 month term, down payment of $3,000, annual mileage allowance of 12,000 miles, a 0.001 money factor, a tax rate of 0.0%, and a $0 net trade-in. A security deposit may be required depending on creditworthiness.

If you change the Down Payment or Term or Annual Mileage allowance, or if you trade in your current vehicle, the Estimated Monthly Payment will change.

The payment amount does not include title, license or registration fees. Payment amounts may be different due to various factors such as fees, specials, rebates, term, down payment, trade-in, applicable tax rate, and creditworthiness of the customer. Please contact your selected dealer or lender for program details and actual terms.

Finance Transactions:

The Estimated Monthly Payment is based on a 60 month term, a down payment of $6,000, Annual Percentage Rate (APR) of 2.49%, a tax rate of 0.0%, and a $0 net trade-in. If you change the Down Payment or Term, or if you trade in your current vehicle, the Estimated Monthly Payment will change.

The payment amount does not include title, license or registration fees. Payment amounts may be different due to various factors such as fees, specials, rebates, term, down payment, APR, trade-in, and applicable tax rate. The APR presented may not be the lowest rate available. Actual APR is based on the creditworthiness of the customer. Not all customers will qualify for the lowest rate. Please contact your selected dealer or lender for actual rates, program details and actual terms.

Car Payment Calculator

What is a Car Payment Calculator?

A Car Payment Calculator is a tool used to calculate the monthly payments for purchasing or leasing a car. This calculator takes into account parameters like the car's purchase price, down payment, interest rate, loan term, and taxes to determine your payment plan. It helps you get a clear understanding of the financial obligation of owning a car before committing to a purchase.

Calculating your car payment is an essential step for planning your finances and ensuring you can manage your budget. The car payment calculator enables you to compare different payment scenarios and find the most suitable plan for you.

How Does a Car Payment Calculator Work?

A Car Payment Calculator generally works by considering the following parameters:

  • Car Price (Purchase Price): The total price of the car, including optional features and additional costs such as taxes or fees.
  • Down Payment: The initial payment made upfront when purchasing the car. A larger down payment reduces the amount you need to finance, which can lower your monthly payments.
  • Interest Rate: The rate charged by the lender for the loan. This can vary depending on your credit score, loan amount, and market conditions.
  • Loan Term: The duration of the loan, usually expressed in months (e.g., 36, 48, or 60 months). The longer the term, the lower the monthly payment, but the higher the total interest paid over time.
  • Taxes and Fees: Any additional costs such as taxes, registration, and insurance fees that need to be considered in the total cost of the vehicle.
  • Credit Score: Your credit history influences your loan’s interest rate. A higher credit score typically results in a lower interest rate.

Formula for Calculating Car Payments

The car payment calculator uses a standard formula to calculate monthly payments, which is:

            M = P * r * (1 + r)^n / [(1 + r)^n - 1]

Where:

  • M = Monthly payment
  • P = Loan amount (purchase price minus down payment)
  • r = Monthly interest rate (annual interest rate / 12)
  • n = Number of payments (loan term in months)

Benefits of Using a Car Payment Calculator

  • Quick and Easy Calculation: It allows you to calculate the monthly payments quickly and easily without needing to rely on complex formulas or spreadsheets.
  • Compare Different Scenarios: You can experiment with different down payments, interest rates, and loan terms to see how these factors affect your monthly payments.
  • Better Budget Management: Knowing your monthly payment in advance helps you plan your finances and avoid any financial surprises.
  • Credit Score Awareness: By calculating your payments beforehand, you can determine how your credit score may affect your loan approval and terms.

Important Considerations for Using a Car Payment Calculator

  • Interest Rate: Ensure you know your interest rate before making any calculations, as it can significantly impact the total cost of the loan.
  • Taxes and Fees: Remember to include taxes, registration, and other fees, which might not be included in the initial loan calculations but affect the total cost of ownership.
  • Down Payment: A larger down payment can reduce your monthly payments and the total interest paid, but it requires a higher upfront cost.

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