How it works
Your car payment depends on the amount financed (price plus tax, minus down payment and trade-in), the interest rate, and the number of months.
Formula
M = P × r ÷ (1 − (1 + r)⁻ⁿ)
Example
A $35,000 car with $5,000 down at 7% for 60 months costs about $634 per month before tax.
Assumptions & limitations
- Fixed rate and on-time payments.
- Excludes origination fees, late fees and penalties unless entered.
Frequently asked questions
Is a longer loan better?
Longer loans lower the monthly payment but increase total interest, and you may owe more than the car is worth.