Use this calculator to estimate potential monthly payments for a car loan. Enter the vehicle price, your down payment amount, the loan term in months, and an estimated annual interest rate.
Your Estimated Monthly Payment: $0.00
Understanding Your Auto Loan Calculation
This calculator estimates your monthly car loan payment based on the principal loan amount, the loan term, and the annual interest rate. The calculation uses a standard amortization formula to determine how much you would pay each month.
How the Calculation Works:
The formula for calculating the monthly payment (M) of a loan is derived from the standard loan amortization equation:
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1]
Where:
P = Principal Loan Amount (Vehicle Price – Down Payment)
n = Total Number of Payments (Loan Term in Months)
The calculator first determines the principal loan amount by subtracting your down payment from the vehicle's price. It then converts the annual interest rate into a monthly interest rate and uses the loan term in months to plug into the formula.
Key Factors Affecting Your Payment:
Vehicle Price: A higher vehicle price generally means a higher loan amount and potentially higher monthly payments.
Down Payment: A larger down payment reduces the principal loan amount, directly lowering your monthly payments and the total interest paid over the life of the loan.
Loan Term: A longer loan term (more months) will result in lower monthly payments but will increase the total interest you pay over time. Conversely, a shorter term means higher monthly payments but less total interest.
Annual Interest Rate: The interest rate significantly impacts your payment. A lower APR means less interest accrues, leading to lower monthly payments and less interest paid overall.
This tool provides an estimate. Actual loan offers from lenders like Capital One may vary based on your creditworthiness, the specific vehicle, and current market conditions. It's always a good idea to get pre-approved to understand your real financing options.
function calculateMonthlyPayment() {
var vehiclePrice = parseFloat(document.getElementById("vehiclePrice").value);
var downPayment = parseFloat(document.getElementById("downPayment").value);
var loanTermMonths = parseInt(document.getElementById("loanTermMonths").value);
var annualInterestRate = parseFloat(document.getElementById("annualInterestRate").value);
var principalLoanAmount = vehiclePrice – downPayment;
if (isNaN(vehiclePrice) || isNaN(downPayment) || isNaN(loanTermMonths) || isNaN(annualInterestRate) ||
principalLoanAmount < 0 || loanTermMonths <= 0 || annualInterestRate < 0) {
document.getElementById("monthlyPaymentResult").textContent = "Please enter valid positive numbers for all fields.";
return;
}
var monthlyInterestRate = (annualInterestRate / 100) / 12;
var monthlyPayment = 0;
if (monthlyInterestRate === 0) {
monthlyPayment = principalLoanAmount / loanTermMonths;
} else {
monthlyPayment = principalLoanAmount * (monthlyInterestRate * Math.pow(1 + monthlyInterestRate, loanTermMonths)) / (Math.pow(1 + monthlyInterestRate, loanTermMonths) – 1);
}
if (isNaN(monthlyPayment)) {
document.getElementById("monthlyPaymentResult").textContent = "Calculation error. Please check inputs.";
return;
}
document.getElementById("monthlyPaymentResult").textContent = "$" + monthlyPayment.toFixed(2);
}