When purchasing a new or used Ford vehicle, understanding your potential monthly payment is crucial for budgeting and making an informed decision. This calculator helps you estimate that payment based on key financial factors: the vehicle's price, your down payment, the loan term (how many months you'll be paying), and the annual interest rate.
This calculator uses a standard auto loan amortization formula to provide an estimate. The formula calculates the fixed monthly payment required to pay off the loan over the specified term, including both principal and interest.
The Formula Explained
The formula used to calculate the monthly payment (M) is derived from the standard annuity formula:
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1]
Where:
M = Your total estimated monthly payment.
P = The principal loan amount. This is calculated as: Vehicle Price - Down Payment.
i = Your *monthly* interest rate. This is calculated by taking the Annual Interest Rate and dividing it by 12 (months in a year) and then by 100 (to convert the percentage to a decimal). So, i = (Annual Interest Rate / 100) / 12.
n = The total number of payments (the loan term in months). This is the Loan Term (Months).
How to Use the Calculator:
Vehicle Price: Enter the total agreed-upon price of the Ford vehicle you're interested in.
Down Payment: Input the amount of money you plan to pay upfront. This reduces the amount you need to finance.
Loan Term: Specify the number of months you intend to take to pay off the loan. Common terms range from 36 to 72 months.
Annual Interest Rate: Enter the Annual Percentage Rate (APR) offered by the lender. Check your pre-approval or dealer financing offer for this rate.
Calculate Payment: Click the button to see your estimated monthly payment.
Reset: Click this button to clear all fields and start over.
Example Calculation:
Let's say you're looking at a new Ford F-150 priced at $50,000.
Vehicle Price: $50,000
Down Payment: $7,000
Loan Term: 60 months
Annual Interest Rate: 6.5%
First, we calculate the principal loan amount (P):
P = $50,000 - $7,000 = $43,000
Next, we calculate the monthly interest rate (i):
i = (6.5 / 100) / 12 = 0.065 / 12 ≈ 0.00541667
So, the estimated monthly payment for this Ford F-150 loan would be approximately $839.93.
Important Considerations:
This calculator provides an estimate. Actual loan offers may include additional fees (e.g., origination fees, dealer fees), taxes, and other charges that can affect your total cost and monthly payment. Always review the full loan disclosure provided by your lender. Interest rates can vary significantly based on your credit score, the specific Ford model, current market conditions, and promotional offers.
function calculateFordPayment() {
var vehiclePrice = parseFloat(document.getElementById("vehiclePrice").value);
var downPayment = parseFloat(document.getElementById("downPayment").value);
var loanTerm = parseInt(document.getElementById("loanTerm").value);
var annualInterestRate = parseFloat(document.getElementById("annualInterestRate").value);
var monthlyPayment = 0;
if (isNaN(vehiclePrice) || vehiclePrice <= 0 ||
isNaN(downPayment) || downPayment < 0 ||
isNaN(loanTerm) || loanTerm <= 0 ||
isNaN(annualInterestRate) || annualInterestRate = vehiclePrice) {
alert("Down payment cannot be greater than or equal to the vehicle price.");
document.getElementById("monthlyPayment").textContent = "$0.00";
return;
}
var principal = vehiclePrice – downPayment;
var monthlyInterestRate = (annualInterestRate / 100) / 12;
// Check if interest rate is essentially zero to avoid division by zero issues
if (monthlyInterestRate === 0) {
monthlyPayment = principal / loanTerm;
} else {
var numerator = principal * (monthlyInterestRate * Math.pow(1 + monthlyInterestRate, loanTerm));
var denominator = Math.pow(1 + monthlyInterestRate, loanTerm) – 1;
monthlyPayment = numerator / denominator;
}
document.getElementById("monthlyPayment").textContent = "$" + monthlyPayment.toFixed(2);
}
function resetForm() {
document.getElementById("vehiclePrice").value = "";
document.getElementById("downPayment").value = "";
document.getElementById("loanTerm").value = "";
document.getElementById("annualInterestRate").value = "";
document.getElementById("monthlyPayment").textContent = "$0.00";
}