Car payment calculator

Your monthly car payment

Total$492
Amount financed
$24,000
Total paid over the term
$29,544
Total interest
$5,544
Cost per year of ownership
$6,709
Your monthly car payment
$492

A car loses value while the loan runs. The shorter the term and the larger the deposit, the less of that loss you finance.

Budget the insurance too, not just the payment

The car payment is half the cost. Get auto insurance quotes for the vehicle before you sign anything.

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The short answer

The payment comes from the amount financed, the rate and the term. Stretching the term lowers the monthly figure and raises the total, because interest runs for longer on a falling asset.

Why the term matters more than the rate

A 72- or 84-month loan buys a comfortable monthly number by keeping you in debt long after the car has lost most of its value. Keeping the term at 48 months or less is the single decision that limits the cost.

Before you sign

  • Negotiate the price, not the payment — dealers can hit any payment by moving the term.

  • Arrange finance separately so you can compare the dealer offer with a real alternative.

  • Count insurance, fuel and maintenance in the monthly cost of the car, not just the loan.

The formula

Payment = P x r / (1 - (1 + r)^-n), where P = price - deposit - trade-in, r = APR/12, n = months.

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