When you're looking to finance a vehicle through Carvana, understanding the potential monthly payment is crucial for budgeting. This calculator helps you estimate your monthly auto loan payment based on the loan amount, the annual interest rate, and the loan term in years. Carvana, like other online car retailers, partners with various lenders to offer financing options, and the terms can vary significantly.
How the Calculation Works
The monthly payment for an auto loan is calculated using a standard loan amortization formula. The formula determines the fixed periodic payment (usually monthly) required to pay off the loan over a set period, considering the principal amount, interest rate, and loan term.
The formula for calculating the monthly payment (M) is:
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1]
Where:
P = Principal loan amount (the total amount you borrow)
i = Monthly interest rate (annual interest rate divided by 12)
n = Total number of payments (loan term in years multiplied by 12)
Example:
Let's say you're looking at a car with a loan amount (P) of $25,000, an annual interest rate of 7.5%, and a loan term of 5 years.
Total Number of Payments (n) = 5 years * 12 months/year = 60 months
Plugging these values into the formula:
M = 25000 [ 0.00625(1 + 0.00625)^60 ] / [ (1 + 0.00625)^60 – 1]
M = 25000 [ 0.00625(1.00625)^60 ] / [ (1.00625)^60 – 1]
M = 25000 [ 0.00625 * 1.453296 ] / [ 1.453296 – 1 ]
M = 25000 [ 0.0090831 ] / [ 0.453296 ]
M = 227.0775 / 0.453296
M ≈ $500.94
This means the estimated monthly payment for this scenario would be approximately $500.94.
Factors Affecting Your Carvana Loan
While this calculator provides a good estimate, your actual Carvana auto loan offer may differ due to several factors:
Credit Score: A higher credit score typically leads to lower interest rates.
Down Payment: A larger down payment reduces the loan amount, lowering your monthly payments and potentially the interest rate.
Loan Term: Longer loan terms result in lower monthly payments but can mean paying more interest over the life of the loan. Shorter terms have higher monthly payments but less overall interest paid.
Vehicle Age and Mileage: Lenders may offer different rates for newer vs. older used cars.
Lender Partnerships: Carvana works with various financial institutions, each with its own lending criteria and rates.
It's always recommended to check your actual financing options directly with Carvana to get precise figures tailored to your specific situation. This calculator serves as a valuable tool for preliminary planning and understanding the financial implications of different loan scenarios.
function calculateLoan() {
var loanAmount = parseFloat(document.getElementById("loanAmount").value);
var annualInterestRate = parseFloat(document.getElementById("interestRate").value);
var loanTermYears = parseInt(document.getElementById("loanTerm").value);
var monthlyPaymentElement = document.getElementById("monthlyPayment");
if (isNaN(loanAmount) || isNaN(annualInterestRate) || isNaN(loanTermYears) || loanAmount <= 0 || annualInterestRate < 0 || loanTermYears <= 0) {
monthlyPaymentElement.textContent = "Invalid input. Please check your values.";
monthlyPaymentElement.style.color = "#dc3545"; // Red for error
return;
}
var monthlyInterestRate = annualInterestRate / 100 / 12;
var numberOfPayments = loanTermYears * 12;
var monthlyPayment;
if (monthlyInterestRate === 0) {
monthlyPayment = loanAmount / numberOfPayments;
} else {
monthlyPayment = loanAmount * (monthlyInterestRate * Math.pow(1 + monthlyInterestRate, numberOfPayments)) / (Math.pow(1 + monthlyInterestRate, numberOfPayments) – 1);
}
if (isNaN(monthlyPayment) || !isFinite(monthlyPayment)) {
monthlyPaymentElement.textContent = "Calculation error. Please check inputs.";
monthlyPaymentElement.style.color = "#dc3545"; // Red for error
} else {
monthlyPaymentElement.textContent = "$" + monthlyPayment.toFixed(2);
monthlyPaymentElement.style.color = "#28a745"; // Green for success
}
}
// Initial calculation on page load
document.addEventListener("DOMContentLoaded", function() {
calculateLoan();
});