Learn how much you’ll owe each month on a new car loan.
How to use this car loan monthly payment calculator
- Enter the amount you want to borrow to buy a new car under Loan amount. This might not be the same as the cost of your car, since many lenders require a down payment.
- Write the amount of time you have to pay off your car loan under Loan terms (in years). If your loan term is in months, divide it by 12 first.
- Enter the interest rate you expect to pay on a car loan under Interest rate. If your car loan comes with fees, enter the annual percentage rate (APR) instead.
- Hit Calculate.
In addition to your monthly payment, this calculator shows you how much you’d pay on your loan’s principle and in total interest. The principle is the amount that you borrowed and should be equal to your loan amount. Total interest is the amount that you would pay on top of the principle — the cost of your loan.
I calculated my monthly payment. What’s next?
It depends on why you used this calculator. If you wanted to know your monthly payment on an offer from a lender, you might want to prequalify with a few more lenders to find out if you can get a better deal.
If you’re trying to figure out how much you can afford to borrow, use the loan amount, term and rate as a guideline for finding a car and a loan that you can afford. Some lenders require you to have a car picked out before you apply. Even if they don’t, it doesn’t hurt to visit a few dealerships to compare your options.
After you’ve found a car that you like, research lenders that are willing to finance the particular car you’re interested in buying — some have restrictions on models, makes and mileage if you’re getting a used car. You can get started by using our comparison table. Once you’ve found a lender you like, follow their specific directions for applying for an auto loan.
Other costs to keep in mind
- Down payment. Typically car loans come with a down payment of up to 20% of the vehicle’s value.
- Taxes. Make sure you’re including the sales tax in your loan amount when calculating the monthly repayments.
- Insurance premiums. On top of car loan payments, you’ll have to pay for insurance. Use our car insurance calculator to make sure both are within your budget.
Knowing your monthly payment can help you understand what kind of car is in your budget. After all, your monthly payment is the immediate cost you’ll have to deal with on a regular basis. If you can’t afford the monthly payments on the loan you need to buy a car, you probably can’t afford it.
Keep in mind that you might only be able to get a loan worth 80% of your car’s value. This means that you might be required to pay that 20% upfront.
Ready to get an auto loan? Compare a range of car loan offers in our comprehensive guide.