See Your True Monthly Car Cost
How We Calculate Your Payment
Our Calculation Method
This calculator figures out your monthly payment using the standard amortized loan formula. It considers the amount you’re financing (vehicle price minus your down payment and trade-in, plus sales tax), your annual interest rate, and how many months you’ll be paying the loan.
Monthly Payment Formula:
M = P × [r(1+r)ⁿ] / [(1+r)ⁿ – 1]Where:
- M = Monthly payment
- P = Amount financed
- r = Monthly interest rate (APR ÷ 12 ÷ 100)
- n = Loan term in months
How we calculate it:
- Add sales tax to the vehicle price
- Subtract your down payment and trade-in value
- Convert the annual interest rate to a monthly rate
- Apply the amortization formula
- Multiply the monthly payment by the loan term to get total cost
- Subtract the amount financed to find total interest
This method follows standard loan calculation practices, uses compound interest principles, and aligns with TILA disclosure requirements.
Note: Results are estimates. Actual payments may vary based on lender terms, fees, and your credit profile.