How This Calculator Works
Enter the vehicle price and subtract the down payment to get the financed amount. The amortization formula computes equal monthly payments over the loan term at the given interest rate. For a more detailed calculation that includes taxes, fees, and trade-in value, use the Auto Loan Calculator.
Frequently Asked Questions
Monthly payment = P(r(1+r)^n)/((1+r)^n-1), where P is the financed amount, r is the monthly interest rate, and n is the number of monthly payments. The financed amount is the car price minus the down payment.
According to Experian's State of the Automotive Finance Market report, the average new car payment in early 2025 was approximately $735 per month, and the average used car payment was approximately $523 per month, reflecting higher vehicle prices and interest rates compared to historical norms.
Your credit score is the primary factor lenders use to set your interest rate. Buyers with excellent credit (750+) may qualify for rates as low as 4-5% on new cars. Buyers with poor credit (below 600) may pay 15-25% or more. The difference between a 5% and 15% rate on a $30,000 loan over 60 months is roughly $140/month and over $8,000 in total interest.
Yes. Getting preapproved by your bank or credit union before shopping gives you a benchmark interest rate, strengthens your negotiating position, and helps you identify if the dealer's financing offer is competitive. Always compare the dealer's rate to your preapproval rate.
Both calculators use the same formula. The Auto Loan Calculator includes fields for trade-in value, taxes, and fees to give a more complete picture of the total financed amount. The Car Payment Calculator is simpler, focusing on the basic monthly payment from price minus down payment.
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