Estimate your monthly car payment from the vehicle price, down payment, trade-in, sales tax, loan term, and APR. See total interest and the full cost of the loan.
Your monthly payment depends on the amount you finance, your interest rate, and your loan term. The amount financed is the vehicle price plus sales tax, minus your down payment and trade-in. That balance is then amortized over your term using the standard loan payment formula, so each payment covers interest plus a slice of principal.
Four levers move your payment: a larger down payment, a lower price (negotiate or buy used), a better interest rate (shop your credit union and banks, not just the dealer), and a longer term. Be careful with long terms — stretching to 72 or 84 months lowers the monthly payment but sharply increases total interest and the risk of owing more than the car is worth.
A common guideline is keeping total monthly car costs — payment plus insurance — under about 15% of your take-home pay, or following the 20/4/10 rule: 20% down, a term no longer than four years, and total vehicle costs under 10% of gross income. To work backward from a comfortable payment to a price, use our car affordability calculator.
A car note is your monthly auto loan payment — the fixed amount you pay each month until the loan is paid off. "Car note" and "car payment" mean the same thing.
From the amount financed (vehicle price minus down payment and trade-in, plus sales tax and fees), your APR, and your loan term in months.
A common guideline is keeping total car costs under about 15% of your take-home pay, or using the 20/4/10 rule. Enter a target payment in our affordability calculator to work back to a price.
Put more down, secure a lower APR, choose a less expensive car, or extend the term — though a longer term lowers the payment while raising total interest.
On the amount financed after your down payment and trade-in, plus taxes and fees — not the sticker price alone.