How much will my monthly car payment be?

Use our car payment calculator to estimate your monthly payment. Enter the purchase price, trade-in value, down payment, and loan details to see what the payment could be and compare loan offers more easily.

3 minute to read

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How to determine your car payment

Your monthly car payment depends on three main factors: how much you borrow, the interest rate on your loan, and the length of your loan term. Follow these steps to determine your payment:

  1. Figure out how much you need to borrow

    Start with the total cost of the car. Then subtract anything that lowers the amount you'll finance:

    • Down payment: The more you put down up front, the less you'll need to borrow.
    • Trade-in value: Trading in your current car can reduce your loan amount.
    • Cash rebates: Dealer or manufacturer incentives can also lower the amount you finance.

  2. Shop around for interest rates

    Interest rates vary by lender and your credit profile. Even a small difference in rate can add up over the life of your loan. Compare offers from banks, credit unions, and dealerships. You could also refinance your auto loan later on if interest rates drop.

  3. Choose a loan term that fits your budget

    Loan terms typically range from 36 to 72 months. The right one for you depends on what kind of monthly payment you can afford:

    • Shorter terms mean higher monthly payments but lower total interest.
    • Longer terms mean lower monthly payments, but more total interest paid over time.

    Once you have an idea of the amount you need to borrow, your interest rate, and ideal loan term, you can plug those values into our car payment calculator.

This calculator is for illustrative and educational purposes only. Its accuracy and applicability to your circumstances is not guaranteed. You may wish to consult your own adviser regarding your particular circumstances.

Other costs to consider when determining your monthly car payment

These additional auto expenses can also affect your budget:

  • Insurance

    If you're financing your vehicle, your lender will usually require more than just liability coverage. Comprehensive and collision coverages are often mandatory. Comprehensive may help pay for damage from events outside your control like theft, vandalism, fire, or weather-related incidents. Collision may help pay for damage if you hit another vehicle or object, regardless of fault. This greater coverage means your premium will likely be higher.

  • Fuel and maintenance

    Your car requires ongoing care, including oil changes, brake inspections, tire rotations, and unexpected repairs. When combined with the cost of fuel, these expenses can add up quickly. Be sure to leave some cushion in your budget so you're prepared for both everyday costs and unexpected issues.

  • Title, registration, and taxes

    Buying a car also comes with state and local fees, including sales tax, title, and registration. Some of these costs are due at the time of purchase, while others continue on an annual basis.

    If you're trying to determine how much car you can afford, use our car budget calculator.

How to lower your monthly car payments

Here are a few steps you can take before and after your purchase to get a lower car payment:

Before you buy a car

  • Compare loan offers: Rates vary by lender. Shopping around can help you secure the lowest interest rate instead of relying on dealer financing.
  • Choose a less expensive car: A lower purchase price means a smaller loan. Opting for a used version of your preferred model can also help cut costs.
  • Improve your credit score: Better credit typically qualifies you for lower rates, which directly lowers your payment.
  • Make a larger down payment: The more you put down, the less you need to borrow.
  • Consider a longer loan term: Extending the term lowers your monthly bill, but you'll pay more total interest over time.

After you buy a car

  • Refinance your loan: If rates drop or your credit improves, refinancing could lower your rate and monthly payment. Learn more about refinancing a car loan.
  • Make extra payments: Paying a little more each month reduces your principal faster, which can lower the total interest you pay and shorten the life of your loan.

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