See What You’ll Pay Monthly Before You Buy
Calculation Overview
This calculator uses the standard amortized loan formula to estimate monthly payments. It accounts for the financed amount (vehicle price minus down payment and trade-in, plus tax), interest rate, and loan duration.
Formula
M = P × [r(1 + r)ⁿ] / [(1 + r)ⁿ – 1]
Variables:
- M – Monthly Payment
- P – Principal
- r – Monthly Interest Rate (Annual / 12 / 100)
- n – Loan Term (Months)
Process
- Add sales tax to vehicle price.
- Subtract down payment and trade-in.
- Convert annual interest rate to monthly.
- Apply the formula.
- Multiply by term for total cost.
- Subtract principal for total interest.
References:
- Financial institution amortization methods
- Compound interest basis
- TILA compliance
Note: Results are approximate and vary by lender and borrower details.