calculate-loan

01 Loan payments

Loan Calculator With Down Payment: Payment on What You Borrow

Calculator No. 01-0017 · Updated · Formula and assumptions shown below

Monthly payment $534.63
Amount borrowed
$27,000.00
= Purchase price × (1 − down payment ÷ 100)
Total interest
$5,077.80
= Monthly payment × loan term × 12 − amount borrowed
Purchase price
$30,000
Input
You enter
Purchase price ($), Down payment (%), Interest rate (APR) (%), Loan term (years)
You get
Monthly payment ($), Amount borrowed ($), Total interest ($)
Rounding
2 dp

Estimate for education, not financial advice. The result follows from the numbers you enter and the formula shown. It is not a quote or an offer, and it does not include fees, taxes or insurance unless the calculator asks for them. Ask your lender for the exact figures.

This calculator works out what you borrow after a down payment and the monthly payment on it. Enter the purchase price, the down payment as a percent of the price, the APR and the term; you get the payment, the amount borrowed and the total interest.

Formula

Amount borrowed P = price × (1 − down % ÷ 100). Then M = P × r ÷ (1 − (1 + r)−n) with r = APR ÷ 1200 and n = years × 12. Total interest = M × n − P.

Worked Example

A $30,000 purchase with 10% down, 7% APR, 5 years.

  1. Down payment = 30,000 × 10% = 3,000, so P = $27,000.00
  2. r = 7 ÷ 1200 = 0.005833, n = 60
  3. M = 27,000 × 0.005833 ÷ (1 − 1.005833−60) = $534.63
  4. Total interest = 534.63 × 60 − 27,000 = $5,077.80

Assumptions

  • The payment is rounded to the cent and totals use the rounded payment; a lender’s final payment can differ by a few cents.
  • Fixed interest rate for the whole term; payments of equal size at the end of each month.
  • Interest compounds monthly at APR ÷ 12.
  • No fees, taxes or insurance unless the calculator has a field for them.
  • Sales tax, registration and other fees are not added to the amount borrowed.

How to read the result

Each extra percent of down payment lowers the amount borrowed by 1% of the price, which lowers both the payment and the interest in proportion.

Limits and common mistakes

  • Enter the down payment as a percent of the price, not in dollars.
  • If fees or taxes are financed, add them to the price to see their effect.

Frequently Asked Questions

How much is 10% down on $30,000?

$3,000, leaving $27,000 to borrow.

Does a bigger down payment change the rate?

This calculator keeps the APR you enter. Whether a lender offers a different rate is a question for the lender.

Can I enter 0% down?

Yes; the amount borrowed is then the full price.

Formula used
in price | Purchase price | $ | 30000 | 1 | 100000000
in dp | Down payment | % | 10 | 0 | 99
in apr | Interest rate (APR) | % | 7 | 0.01 | 100
in yrs | Loan term | years | 5 | 0.0833 | 50
out pmt | Monthly payment | $ | round(price * (1 - dp / 100) * (apr / 1200) / (1 - (1 + apr / 1200) ^ -(yrs * 12)), 2) | 2
out loan | Amount borrowed | $ | price * (1 - dp / 100) | 2
out int | Total interest | $ | pmt * yrs * 12 - loan | 2

Each line is one input (in, sel, list) or one result (out: label, unit, formula, decimals). How the calculators work

Method: the standard loan formula for this calculation, fixed rate and monthly compounding unless stated, rounded as each result states. Not financial advice; no lender, rate or product is recommended. See formulas and assumptions, the disclaimer or report an error.

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