Monthly car payment calculator
This monthly car payment calculator, or car payment estimator, gives you the payment for any car price, down payment, interest rate and loan length in one step.
Amortization schedule
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | $4,722.16 | $1,760.00 | $22,557.84 |
| 2 | $5,063.50 | $1,418.66 | $17,494.34 |
| 3 | $5,429.58 | $1,052.58 | $12,064.76 |
| 4 | $5,822.06 | $660.10 | $6,242.70 |
| 5 | $6,242.70 | $239.22 | $0.00 |
Estimating a monthly car payment quickly
A quick estimate is the amount financed divided by the number of months, plus about a half to one percent for interest. For a precise figure, enter the price, down payment, tax, fees, APR and term here. The result is the payment before insurance, which can add $100 to $250 or more a month.
$27,280 financed: payment by loan length
At 7% APR, financing $27,280 (the $28,000 price plus 6% sales tax and $400 in fees minus $2,800 down) costs $540.18 a month over 60 months and $411.73 over 84 months. The longer loan lowers the payment by $128.45 but adds $2,175 in interest. Going the other way, 36 months raises the payment to $842.33 and cuts total interest to $3,044.
| Term | Monthly payment | Total interest | Total paid |
|---|---|---|---|
| 3-year | $842.33 | $3,044 | $30,324 |
| 4-year | $653.25 | $4,076 | $31,356 |
| 5-year | $540.18 | $5,131 | $32,411 |
| 6-year | $465.10 | $6,207 | $33,487 |
| 7-year | $411.73 | $7,305 | $34,585 |
How the interest rate changes a 5-year loan
On the same $27,280 over 5 years, each full percentage point of APR moves the payment by about $12.96 and total interest by about $778. Rates depend on your credit score, the loan term and whether the car is new or used, so get a pre-approval from a bank or credit union before you walk into a dealership.
| APR | Monthly payment | Total interest | Difference vs 7% |
|---|---|---|---|
| 5% | $514.81 | $3,608 | −$1,522 |
| 6% | $527.40 | $4,364 | −$767 |
| 7% | $540.18 | $5,131 | +$0 |
| 8% | $553.14 | $5,908 | +$778 |
| 9% | $566.29 | $6,697 | +$1,567 |
What a bigger down payment does
A down payment reduces what you finance, which cuts both the payment and the interest, and it protects you from owing more than the car is worth early in the loan, when new cars depreciate fastest. Here is the same $28,000 car at 7% over 5 years with different down payments.
| Down payment | Amount financed | Monthly payment | Total interest |
|---|---|---|---|
| $0 | $30,080 | $595.62 | $5,657 |
| $2,800 (10%) | $27,280 | $540.18 | $5,131 |
| $5,600 (20%) | $24,480 | $484.73 | $4,604 |
Paying extra
Adding $100 a month to this loan would pay it off 10 months sooner and save $955 in interest, as long as your lender applies extra money to principal and charges no prepayment penalty. Ask before you start.
Can you afford a $28,000 car?
A common rule of thumb, the 20/4/10 guideline, suggests 20% down, a term of at most 4 years and total car costs under 10% of gross income. On payment alone, $540.18 a month points to a gross income of roughly $64,800 a year to stay at 10%, before insurance, fuel and maintenance. This loan departs from the guideline because the down payment is 10% rather than 20% and the term of 60 months is longer than 48, so the payment is lower than a stricter plan would give but the loan costs more overall.
Will you owe more than the car is worth?
New cars commonly lose around 20% of their value in the first year and roughly 15% a year after that, though this varies by model. Using that rough rule on a $28,000 car, you would likely owe more than the car is worth until about year 2. Gap insurance can cover the difference if the car is totaled while you are underwater.
| End of | Loan balance | Est. car value | Equity |
|---|---|---|---|
| Year 1 | $22,558 | $22,400 | −$158 |
| Year 2 | $17,494 | $19,040 | +$1,546 |
| Year 3 | $12,065 | $16,240 | +$4,175 |
| Year 4 | $6,243 | $13,720 | +$7,477 |
| Year 5 | $0 | $11,760 | +$11,760 |
Frequently asked questions
How much is the monthly payment on a $28,000 car?
At 7% over 5 years, financing $27,280 costs about $540.18 a month with $5,131 in total interest. Change the inputs above to match your own quote.
Is a longer loan a good idea on $27,280?
A longer term lowers the payment but increases the total interest and keeps you owing money for longer, which raises the chance of owing more than the car is worth. Most lenders and consumer advocates suggest 60 months or less where the budget allows.
Should I include sales tax and fees in the loan?
Many buyers do, and this calculator does it by default. It raises the amount financed, so you pay interest on the tax too. Paying them in cash at signing keeps the loan smaller.
Does this calculator send my numbers anywhere?
No. Every calculation runs in your browser on your device, and nothing you enter is sent to a server or stored.
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Estimates from standard loan formulas, not a loan offer or financial advice. Example rates are assumptions: use your own quote.