Your Simple Tool to Compare Car Loan Options
Loan Payment Calculation
We use the amortized loan formula to calculate your monthly car payment. It includes the principal (after tax, down payment, and trade-in), the annual interest rate, and loan term.
Formula
M = P × [r(1 + r)ⁿ] / [(1 + r)ⁿ – 1]
Definitions:
- M = Monthly payment
- P = Principal loan amount
- r = Monthly rate (Annual ÷ 12 ÷ 100)
- n = Loan term (months)
Steps:
- Add sales tax.
- Subtract down payment/trade-in.
- Convert APR to monthly rate.
- Calculate monthly payment.
- Multiply by loan term for total cost.
- Subtract principal for interest.
Note: Estimates only. Final terms depend on lender and credit.