How to calculate car payment
M = P × r ÷ (1 − (1 + r)⁻ⁿ) r = APR ÷ 12, n = months
Worked example. Your monthly car payment: $553 / month.
Example inputs — Car price: $32,000; Down payment: $4,000; Interest rate (APR): 6.9%; Loan term: 60 months; Dealer & registration fees: $0.00. Starting values are illustrative.
From George Guju, founder of Calculyn · Educational calculator guidance, not professional advice.
Common questions answered
How it works
Your payment depends on how much you borrow (price plus fees, minus your down payment), the APR and the number of months. Shorter terms mean higher payments but much less interest — the breakdown shows every common term side by side so you can pick the one that fits your budget.
Assumptions & limitations
- Results are rounded for display.
Formula and assumptions reviewed October 2026 by the Calculyn team. How we build our calculators
Frequently asked questions
How is this different from the auto loan calculator?
This one focuses on the monthly payment and compares loan terms. The auto loan calculator adds sales tax and trade-in value.
What's a good car payment?
A common guideline is keeping all car costs under 10–15% of your take-home pay.