Estimate monthly loan payments using the standard amortization formula. No personal information needed.
Formula
Monthly payment = P × [r(1+r)^n] / [(1+r)^n - 1], where P is the loan principal, r is the monthly interest rate (APR / 12 / 100), and n is the number of months. This is the standard amortization formula used by auto lenders.
Your actual payment depends on your credit score, down payment, trade-in value, lender fees, and state-specific taxes. This estimate does not include sales tax, registration, or insurance.
What affects your car payment?
Four variables drive your monthly payment: loan amount, APR, loan term, and whether you pay interest only or amortize fully. This calculator uses full amortization -- the standard method used by US auto lenders.
Loan amount: Vehicle price minus your down payment and trade-in value.
APR: Annual percentage rate. As of mid-2026, new car loan rates range from 5% (excellent credit) to 10%+ (subprime). Used car rates run 1-3% higher.
Loan term: Longer terms lower your payment but increase total interest. A 72-month loan at 7% on $30,000 costs $2,700 more in interest than a 60-month loan.
Down payment: Every additional $1,000 down reduces your payment by about $19-$20/month on a 60-month loan at 7%.
Current average car loan rates (2026)
New car, excellent credit (750+): 5.0% - 6.5%
New car, good credit (700-749): 6.5% - 8.5%
New car, fair credit (650-699): 8.5% - 12%
Used car (add ~1-3%): rates run higher due to collateral risk
Source: Experian State of the Automotive Finance Market report.
Frequently asked questions
What is a good monthly car payment?
Financial advisors recommend keeping total car expenses (payment + insurance + fuel) under 15-20% of monthly take-home pay. For a $5,000/month take-home, that's $750-$1,000 total. Use our Total Cost of Ownership Calculator to see the full monthly picture.
Should I choose a 60 or 72 month loan?
A 60-month term pays off the vehicle faster and costs less in interest. A 72-month term lowers the monthly payment but you risk being "upside down" (owing more than the car is worth) for longer. Most financial experts recommend 48-60 months for new cars. See our Depreciation Calculator to understand how fast a car loses value.
Does my credit score affect my car loan rate?
Yes, significantly. A 100-point difference in credit score can mean a 2-4% difference in APR. On a $30,000 loan over 60 months, a 4% rate difference costs about $3,200 more in total interest. Improve your score by paying bills on time and reducing credit card balances before applying.