Car Loan Calculator: Monthly Payment Estimator
Calculate your monthly car payment based on loan amount, interest rate, and term length. See the total cost of the loan including interest, and understand how different terms affect your payment.
Loan Details
Loan Summary
Formula
Monthly payments are calculated using the standard amortization formula:
M = P × [r(1+r)ⁿ / ((1+r)ⁿ − 1)]
M = monthly payment, P = principal, r = monthly rate, n = total months
Sources
- • Federal Reserve Board. Consumer credit statistics.
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Frequently Asked Questions
What is a good interest rate for a car loan?
As of 2026, good rates range from 4-7% for new cars and 5-9% for used cars. Excellent credit scores (740+) qualify for the lowest rates.
Should I choose a longer loan term?
Longer terms mean lower monthly payments but more total interest paid. A 60-month loan costs significantly less in total interest than an 84-month loan.
How much car can I afford?
A common guideline is the 20/4/10 rule: 20% down payment, 4-year loan maximum, and total car expenses under 10% of gross income.
Does down payment affect monthly payment?
Yes. A larger down payment reduces the loan principal, resulting in lower monthly payments and less total interest paid.
Is it better to pay off a car loan early?
Usually yes, as you save on interest. Check that your loan has no prepayment penalty, then make extra payments toward the principal.