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06 Auto loans

Car Loan Calculator With Down Payment: Monthly Car Payment

Calculator No. 06-0033 · Updated · Formula and assumptions shown below

Monthly payment $561.06
Amount financed
$28,000.00
= Vehicle price − down payment
Total interest
$5,663.60
= Monthly payment × term − amount financed
Vehicle price
$32,000
Input
Section
Auto loans
You enter
Vehicle price ($), Down payment ($), Interest rate (APR) (%), Term (months)
You get
Monthly payment ($), Amount financed ($), Total interest ($)
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 a monthly car payment. Enter the vehicle price, your down payment, the APR and the term in months; you get the payment, the amount financed and the total interest.

Formula

Amount financed = price − down payment. M = financed × r ÷ (1 − (1 + r)−n), r = APR ÷ 1200, n = term in months. Total interest = M × n − financed.

Worked Example

A $32,000 vehicle with $4,000 down at 7.5% APR for 60 months.

  1. Financed = 32,000 − 4,000 = $28,000.00
  2. r = 0.00625; M = 28,000 × 0.00625 ÷ (1 − 1.00625−60) = $561.06
  3. Total interest = 561.06 × 60 − 28,000 = $5,663.60

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, title, registration and dealer fees are not included; they vary by state and dealer.

How to read the result

A longer term lowers the payment and raises the interest. Comparing the same car at 48, 60 and 72 months shows the trade-off quickly.

Limits and common mistakes

  • The down payment cannot exceed the price.
  • If taxes and fees are financed, add them to the price.

Frequently Asked Questions

What is the payment on $28,000 financed at 7.5% for 60 months?

About $561.06 a month, with about $5,664 of interest.

How do I include a trade-in?

Use the trade-in calculator.

Is a 72-month loan cheaper each month?

Yes, but it costs more interest in total.

Formula used
in price | Vehicle price | $ | 32000 | 1 | 10000000
in dp | Down payment | $ | 4000 | 0 | 10000000
in apr | Interest rate (APR) | % | 7.5 | 0.01 | 100
in n | Term | months | 60 | 1 | 120
out pmt | Monthly payment | $ | round((price - dp) * (apr / 1200) / (1 - (1 + apr / 1200) ^ -n), 2) + 0 * sqrt(price - dp) | 2
out fin | Amount financed | $ | price - dp | 2
out int | Total interest | $ | pmt * n - fin | 2

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

Photo collage: a car fully covered by a fitted plain grey fabric car cover parked in a sunny residential driveway, and a close-up of a plain black key fob with no logo on a wooden table.
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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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