Make Smarter Car-Buying Decisions with Real Numbers
How We Figure Your Monthly Payment
This calculator uses the amortized loan formula based on your loan amount, interest rate, and term.
Formula:
M = P × [r(1 + r)ⁿ] / [(1 + r)ⁿ - 1]- M = Monthly payment
- P = Loan amount after taxes, down payment, and trade-in
- r = Monthly interest (APR ÷ 12 ÷ 100)
- n = Number of months
Steps:
- Add tax to car price.
- Subtract down payment and trade-in.
- Convert interest to monthly.
- Plug into formula.
- Find total payment and interest.
Sources:
- Amortization standards
- Compound interest rules
- TILA compliance
Note: This is an estimate. Actual costs may differ.