Car Payment Calculator
⭐ How This Car Payment Calculator Works (Use of Method)
This calculator uses the standard auto loan amortization formula. It calculates monthly payments based on the loan amount, interest rate, and repayment period.
📌 Formula Used (Method)
The calculator uses this formula:
M = (P × r) / (1 – (1 + r)<sup>–n</sup>)
Where:
- M = Monthly Payment
- P = Loan Amount (Car Price – Down Payment)
- r = Monthly Interest Rate (Annual Rate ÷ 12 ÷ 100)
- n = Number of Months
This method ensures accurate and professional financial results. It works the same way banks and dealerships calculate auto loans.
🚗 Why Use a Car Payment Calculator?
✔ Helps You Set a Budget
Before buying a car, you can estimate exactly how much you can afford each month.
✔ Understand the Total Loan Cost
You see how interest affects your monthly payment.
✔ Compare Loan Options
Try different interest rates and repayment periods to find the best plan.
✔ Smart Planning
It saves you from high monthly expenses or unexpected financial stress.