How the payment is worked out
The calculator adds sales tax and fees to the price, subtracts your down payment and trade-in, and adds anything you still owe on the trade-in. That is the amount financed. It then spreads that amount over the loan length at the interest rate you enter, using the standard loan formula.
Use it to compare, not to predict
Real offers depend on your credit and your lender. Use this to see how the numbers move: a longer loan lowers the payment but raises the total interest, and a bigger down payment lowers both.
Common questions
How is a car payment calculated?
From the amount financed, the yearly interest rate and the number of months, using the standard loan payment formula. This calculator does that for you.
Does the payment include insurance?
No. It covers only the loan. Insurance, fuel and maintenance are extra.
What interest rate should I enter?
Use the rate from a pre-approval at your bank or credit union, or a dealer's quote. Try a few to see the difference.
Related guides
These are estimates for general information, not financial, tax or legal advice. Real figures depend on your state, your lender and your contract.