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Car Loan & Lease Calculator

Estimate your monthly auto loan payment and total interest with a standard amortization formula, or your monthly lease payment using residual value and money factor. Down payment and trade-in included — instant results, all in USD.

2 modes loan + lease Instant results Free, no sign-up Updated: Jul 21, 2026
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Added to the amount financed, if your state taxes the full price.
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Added to the amount financed, if rolled into the loan instead of paid upfront.
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Manufacturer incentive subtracted from the amount financed, like a down payment.
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Paid on top of the regular payment each month, applied directly to principal — see payoff time and interest saved below.
Amount financed = vehicle price − down payment − trade-in value − cash rebate + sales tax + title/registration fees. Monthly payment uses the standard loan amortization formula.
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APR is about money factor × 2,400 (0.00125 ≈ 3% APR).
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Typical range: roughly 40-65%, depending on term and vehicle.
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Some states tax only the monthly payment; others tax the cap cost. This adds tax to the adjusted capitalized cost.
Lease payment = depreciation (adjusted cap cost − residual) ÷ term, plus a rent charge (money factor × (cap cost + residual)).
📅 Full amortization schedule
Month-by-month payment, interest, principal, and remaining balance, with year subtotals
MonthPaymentInterestPrincipalBalance
Quick answer To estimate a car loan payment, subtract your down payment and trade-in value from the vehicle price to get the amount financed, then apply the amortization formula Payment = P × [r(1+r)ⁿ] ÷ [(1+r)ⁿ − 1] — a $30,000 loan at 6% APR for 60 months comes to about $579.98/month. A car lease payment instead adds depreciation (capitalized cost minus residual value, divided by the term) to a rent charge based on the money factor.
$579.98$30,000 loan · 6% APR · 60mo
MF × 2400≈ equivalent APR
36-84mocommon loan terms
24-39mocommon lease terms
⚖️ Lease vs. buy, briefly: Leasing pays only for the vehicle's depreciation during the term, so the monthly payment is usually lower — but you build no equity, face mileage limits, and owe nothing back at turn-in. Financing costs more per month but you own the car; keeping it well past the loan's payoff date is usually the cheaper path over time. Frequent-upgrade drivers with predictable mileage often prefer leasing; long-term owners usually come out ahead by financing or buying with cash.
⚙️ Note: This tool computes standard loan amortization and standard US lease math (money factor based) exactly as described above. It excludes sales tax, title/registration fees, dealer add-ons, and acquisition/disposition fees, which vary by state, lender, and dealer. Results are estimates for informational purposes only and are not financial advice — confirm exact figures with your lender or leasing company before signing.
🚗 Car Loan Calculator — ToolPico ↗

How are car loan and lease payments calculated?

A complete guide — with formulas and worked examples — to auto loan amortization, the effect of down payments and trade-ins, and US lease-payment math using residual value and money factor.

A car loan payment is calculated the same way as any installment loan: the amount you finance is paid back in equal monthly installments that cover both principal and interest, using an amortization formula. A car lease payment works differently — instead of paying off the vehicle's full price, you pay only for the portion of its value you use up (depreciation) plus a finance charge expressed as a money factor rather than an APR. The calculator above handles both, with down payment and trade-in value adjusting the amount financed or capitalized in either mode.

How do you calculate a car loan payment?

Quick answerFirst find the amount financed: Vehicle price − Down payment − Trade-in value. Then apply the standard loan formula: Payment = P × [r(1+r)ⁿ] ÷ [(1+r)ⁿ − 1], where P is the amount financed, r is the monthly interest rate (APR ÷ 12 ÷ 100), and n is the number of monthly payments. A $30,000 amount financed at 6% APR for 60 months comes to about $579.98 per month.
  • Amount financed: $33,000 price − $3,000 down − $0 trade-in = $30,000
  • Monthly rate: 6% ÷ 12 ÷ 100 = 0.005
  • Payment: $30,000 × [0.005 × 1.005⁶⁰] ÷ [1.005⁶⁰ − 1] ≈ $579.98/month
  • Total interest over 60 months: ($579.98 × 60) − $30,000 ≈ $4,799

What affects your monthly car loan payment?

Quick answerFour inputs drive the payment: the vehicle price, your down payment, your trade-in value, and the APR and term you qualify for. A larger down payment or trade-in reduces the amount financed dollar-for-dollar; a lower APR or shorter term reduces the interest charged, though a shorter term raises the monthly payment even as it lowers total interest paid.

Down payment and trade-in value are economically identical in the loan formula — both simply reduce the principal being financed. The difference is practical: a trade-in offsets the price at the dealership, while a down payment is cash (or a separate loan) you put in directly. If you still owe money on a trade-in vehicle, only its equity (trade-in value minus the remaining loan payoff) actually reduces your new loan — see the trade-in equity mini tool below.

How does loan term length affect total interest paid?

Quick answerA longer term lowers the monthly payment but increases total interest, because the balance is repaid more slowly and interest has more months to accrue. On a $30,000 loan at 6% APR, total interest is about $2,856 over 36 months but about $6,814 over 84 months — nearly two and a half times as much — even though the 84-month payment is roughly half the size.

Stretching a loan to a longer term is a common way to make an expensive vehicle "fit" a budget, but it also increases the risk of being upside down (owing more than the car is worth) for longer, since vehicles depreciate faster than a long loan's balance declines. Use the term selector above to compare payment and total interest side by side before choosing a term.

How does a car lease payment work?

Quick answerA lease payment has two parts, added together each month: depreciation — (adjusted capitalized cost − residual value) ÷ term — and a rent charge — money factor × (adjusted capitalized cost + residual value). On a $35,000 vehicle with a $2,000 down payment, a 55% residual value, a 0.00125 money factor, and a 36-month term, that comes to about $447.26 per month ($381.94 depreciation + $65.31 rent charge).
  • Adjusted capitalized cost: $35,000 price − $2,000 down = $33,000
  • Residual value: $35,000 × 55% = $19,250
  • Depreciation: ($33,000 − $19,250) ÷ 36 ≈ $381.94/month
  • Rent charge: 0.00125 × ($33,000 + $19,250) ≈ $65.31/month
  • Total lease payment: $381.94 + $65.31 ≈ $447.26/month

What is a money factor, and how do you convert it to an APR?

Quick answerA money factor is how lease finance charges are expressed in the US in place of an APR — usually a small decimal like 0.00125. Multiply it by 2,400 to estimate the equivalent APR: APR ≈ Money factor × 2,400. So 0.00125 × 2,400 = 3% APR, and reversing it, 6% APR ÷ 2,400 = 0.0025 money factor.

The 2,400 conversion factor comes from the way rent charge is calculated on the sum of cap cost and residual (rather than on a declining loan balance), combined with annualizing a monthly rate. It is a widely used approximation in the US auto industry and is close enough for comparing lease offers, though dealers are only legally required to disclose the money factor itself, not an APR equivalent.

What is residual value, and why does it matter?

Quick answerResidual value is the vehicle's projected worth at lease-end, set by the leasing company as a percentage of MSRP (commonly 40-65%, depending on the vehicle and term). A higher residual value means less projected depreciation over the lease, so the monthly payment is lower — vehicles with strong resale value tend to lease well for this reason.

Residual value also sets your purchase option price if you want to buy the car at lease-end (the residual value is generally what you'd pay, plus any purchase fee). If the car is actually worth more than the residual value at lease-end, buying it out can be a good deal; if it's worth less, walking away and starting a new lease is usually better.

Is it cheaper to lease or buy a car?

Quick answerLeasing typically has the lower monthly payment because you only pay for depreciation during the term, not the full vehicle price, but you build no equity and face mileage and wear limits. Financing (buying) costs more per month but you own the car outright once the loan is paid off — keeping a financed vehicle for years after payoff is usually the lower total-cost option, while leasing suits drivers who value driving a new vehicle every few years.

A simple way to compare: estimate your loan payment and lease payment for the same vehicle and term using the tabs above. If you plan to keep the vehicle 7-10+ years, financing (or paying cash) is almost always cheaper in the long run. If you replace vehicles every 2-4 years and stay within typical mileage limits (10,000-15,000 miles/year), leasing can cost less than repeatedly financing and trading in early, since you avoid the steepest depreciation years.

Car loan payment examples ($30,000 financed)

Monthly payment on a $30,000 amount financed, by loan term and APR. Use the calculator above for your own vehicle price, down payment, and trade-in.

Monthly payment by term and APR ($30,000 financed)
Term0% APR4% APR6% APR8% APR10% APR
36 months$833.33$885.72$912.66$940.09$968.02
48 months$625.00$677.37$704.55$732.39$760.88
60 months$500.00$552.50$579.98$608.29$637.41
72 months$416.67$469.36$497.19$526.00$555.78
84 months$357.14$410.06$438.26$467.59$498.04

Payment = P × [r(1+r)ⁿ] ÷ [(1+r)ⁿ − 1]. For a different amount financed, scale roughly proportionally, or use the calculator above for an exact figure.

Popular calculations

Related mini calculators

Three quick auto-financing calculations that pair with the main tool above: how much car you can afford, converting between money factor and APR, and trade-in equity.

🎯Affordability calculator
Work backward from a monthly payment you're comfortable with to the loan amount it supports.
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🔁Money factor ↔ APR
Convert a lease money factor to its equivalent APR, or an APR to a money factor.
🔄Trade-in equity calculator
See how much of your trade-in's value is left over after paying off your current loan.
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Auto loan & lease reference tables

Citable reference data: loan payment by term and APR, money-factor-to-APR conversion, and typical lease residual value ranges.

Monthly payment by term and APR ($30,000 financed)
Term0%4%6%8%10%
36 mo$833.33$885.72$912.66$940.09$968.02
48 mo$625.00$677.37$704.55$732.39$760.88
60 mo$500.00$552.50$579.98$608.29$637.41
72 mo$416.67$469.36$497.19$526.00$555.78
84 mo$357.14$410.06$438.26$467.59$498.04

Payment = P × [r(1+r)ⁿ] ÷ [(1+r)ⁿ − 1], where P = $30,000, r = APR ÷ 12 ÷ 100.

Money factor to approximate APR (APR ≈ MF × 2,400)
Money factor≈ APR
0.000501.20%
0.000751.80%
0.001002.40%
0.001253.00%
0.001503.60%
0.001754.20%
0.002004.80%
0.002506.00%
0.003007.20%

Approximation only; the money factor is the figure a lease contract legally discloses.

Illustrative typical residual value ranges by lease term
Lease termTypical residual % of MSRP
24 months60-65%
36 months50-58%
39 months48-55%
48 months40-48%

Illustrative only — actual residual values are set by the leasing company per vehicle, trim, and mileage allowance, and vary widely.

Illustrative average APR by credit-score tier (new vehicle loans)
Credit-score tierFICO rangeAvg. new-car APRAvg. used-car APR
Super prime781-850~5.2%~6.5%
Prime661-780~6.5%~8.8%
Nonprime601-660~9.5%~13.5%
Subprime501-600~13.5%~19.5%
Deep subprime300-500~17.5%~21.5%

Illustrative reference figures based on commonly reported industry rate patterns; actual APR offers vary by lender, loan term, vehicle age, and market conditions. Use the calculator above with your own quoted APR for an exact payment.

Add this calculator to your site (embed code)

Embed the car loan & lease calculator on your own website for free. Copy the code below into your HTML — the tool runs in a simplified view and links back to this page as its source.

The embedded tool has a fixed layout; you can adjust the height value to fit your site. No ads or personal data, runs entirely client-side.

Car loan & lease terms glossary

Short definitions of the core terms used in auto loan and lease calculations.

Amount financed (principal)The dollar amount you actually borrow: vehicle price minus down payment and trade-in value.
APRAnnual percentage rate — the yearly cost of a loan expressed as a percentage, divided by 12 for the monthly rate used in amortization.
AmortizationThe process of paying off a loan through fixed monthly payments, each a mix of interest and principal.
Loan termThe number of months over which a loan is repaid; common auto-loan terms are 36 to 84 months.
Down paymentCash paid upfront that reduces the amount financed (loan) or the capitalized cost (lease).
Trade-in valueThe value a dealer credits for your current vehicle, applied the same way as a down payment.
Capitalized cost (cap cost)The lease equivalent of a vehicle's price — the value being leased before any reductions.
Cap cost reductionA lease down payment or trade-in credit that lowers the capitalized cost, and with it, the depreciation portion of the payment.
Residual valueThe vehicle's projected worth at lease-end, usually set as a percentage of MSRP; higher residuals mean lower payments.
Money factorThe lease equivalent of an interest rate, written as a small decimal (e.g. 0.00125); APR ≈ Money factor × 2,400.
Rent chargeThe lease finance fee: money factor × (adjusted cap cost + residual value), paid each month alongside depreciation.
EquityTrade-in value minus any remaining loan payoff; positive equity can be applied toward a new down payment.

In-depth guides

Step-by-step walkthroughs of the two payment calculations and the lease-vs-buy decision.

How is a $30,000 auto loan payment calculated? (step by step)

Step 1: Find the amount financed → $33,000 price − $3,000 down − $0 trade-in = $30,000.
Step 2: Convert the APR to a monthly rate → 6% ÷ 12 ÷ 100 = 0.005.
Step 3: Raise (1 + rate) to the number of payments → 1.005⁶⁰ ≈ 1.34885.
Step 4: Apply the formula → $30,000 × (0.005 × 1.34885) ÷ (1.34885 − 1) ≈ $579.98/month.
Step 5: Multiply by the term and subtract the principal for total interest → ($579.98 × 60) − $30,000 ≈ $4,799.

You can see this instantly by entering the same numbers in the "Loan payment" tab above, or by clicking the first preset chip.

How does the money factor work in a lease?

The money factor replaces an APR in lease math because the finance charge (rent charge) is computed on the sum of the adjusted capitalized cost and the residual value, not on a declining loan balance. For a $35,000 vehicle with a $2,000 down payment, a 55% residual, and a 0.00125 money factor: adjusted cap cost = $33,000, residual = $19,250, so the rent charge = 0.00125 × ($33,000 + $19,250) = 0.00125 × $52,250 ≈ $65.31/month.

Add the depreciation portion — ($33,000 − $19,250) ÷ 36 ≈ $381.94/month — and the total lease payment is about $447.26/month, before any sales tax your state applies to lease payments.

Should I lease or buy my next car?

Compare the same vehicle in both tabs above: if the lease payment is meaningfully lower and you plan to replace the vehicle within the lease term (typically 24-39 months) while staying under the mileage allowance, leasing likely costs less out of pocket during that period. If you plan to keep the vehicle long after a loan is paid off, financing (or buying with cash) almost always wins on total cost, since you stop making payments entirely while the car retains value.

Other factors matter too: leases often come with lower repair costs (the vehicle stays under warranty), but leases restrict mileage and modifications and charge fees for excess wear. There's no universally "right" answer — it depends on how long you keep vehicles and how many miles you drive.

Frequently asked questions

How do you calculate a car loan payment?
A car loan payment is calculated with the standard amortization formula: Payment = P × [r(1+r)ⁿ] ÷ [(1+r)ⁿ − 1], where P is the amount financed (vehicle price minus down payment and trade-in value), r is the monthly interest rate (APR ÷ 12 ÷ 100), and n is the loan term in months. For example, a $30,000 loan at 6% APR for 60 months comes to about $579.98 per month.
What is a good APR for a car loan?
A good APR depends on your credit score, the loan term, and whether the vehicle is new or used, and rates move with the broader interest-rate environment, so there is no single fixed number. Shorter terms and stronger credit generally qualify for lower rates; use the calculator above to see how a given APR changes your monthly payment and total interest so you can compare offers.
How does a down payment lower my car payment?
A down payment is subtracted from the vehicle price before the loan amount is calculated, so a larger down payment directly reduces the amount financed. Financing less means a lower monthly payment and less total interest paid over the loan, since interest is charged only on the remaining balance.
How does a trade-in affect my auto loan?
A trade-in value works the same way as a down payment: it is subtracted from the vehicle price along with any down payment to determine the amount financed. If you still owe money on the trade-in vehicle, only the equity (trade-in value minus any remaining loan balance) reduces your new loan.
What is a money factor in a car lease?
A money factor is how lease finance charges are expressed in the US, instead of an APR. It's usually written as a small decimal such as 0.00125. To estimate the equivalent APR, multiply the money factor by 2,400: 0.00125 × 2,400 = 3% APR.
How do you convert a money factor to an APR?
Multiply the money factor by 2,400 to get an approximate APR: APR ≈ Money factor × 2,400. To go the other direction, divide the APR by 2,400: Money factor ≈ APR ÷ 2,400. For example, a 0.0015 money factor is about 3.6% APR, and a 4.8% APR is about a 0.002 money factor.
How is a car lease payment calculated?
A lease payment has two parts. The depreciation portion is the vehicle's projected loss of value: (adjusted capitalized cost − residual value) ÷ lease term. The rent charge (finance fee) is the money factor times the sum of the adjusted capitalized cost and residual value. Adding the two gives the monthly payment before tax.
What is residual value in a lease?
Residual value is the vehicle's projected worth at the end of the lease term, usually expressed as a percentage of MSRP (for example 55% on a 36-month lease). A higher residual value means less depreciation to pay for during the lease, which lowers the monthly payment.
Is it cheaper to lease or buy a car?
Leasing usually has a lower monthly payment because you're only paying for the vehicle's depreciation during the lease term, not its full value, but you don't build any equity and typically face mileage limits. Buying and financing costs more per month but builds ownership; over the long run (keeping a vehicle past the loan term), financing is usually the lower-cost option, while leasing can suit drivers who prefer a new vehicle every few years.
How does loan term length affect total interest paid?
A longer loan term lowers the monthly payment but increases total interest paid, because interest accrues for more months and the balance declines more slowly. For example, a $30,000 loan at 6% APR costs about $2,856 in total interest over 36 months but about $6,814 over 84 months, even though the monthly payment is much lower at 84 months.
Can I see a full month-by-month amortization schedule?
Yes. After calculating a loan payment, expand the "Full amortization schedule" panel below the result to see every month's payment split into interest and principal, the remaining balance, and a subtotal row after each year of payments.
Does the calculator include sales tax?
Sales tax is optional and off by default. Enter your state or local sales tax percentage in the Sales tax field in either the loan or lease tab, and it's added to the amount financed (loan) or adjusted capitalized cost (lease) before the payment is calculated. Tax rules vary by state, so confirm the exact method with your dealer.

Methodology & sources

ToolPico's Car Loan & Lease Calculator is a free, independent tool. The loan mode uses the standard amortization formula Payment = P × [r(1+r)ⁿ] ÷ [(1+r)ⁿ − 1], where P is the amount financed (vehicle price minus down payment and trade-in value), r is the monthly rate (APR ÷ 12 ÷ 100), and n is the term in months. The lease mode uses standard US lease-payment math: depreciation is (Adjusted cap cost − Residual value) ÷ Term, and the rent charge is Money factor × (Adjusted cap cost + Residual value), with the two added together for the monthly payment. Results are computed instantly client-side (in your browser); no data is sent to a server.

Basis: Standard financial mathematics used for US installment loans and closed-end vehicle leases. Last updated: July 21, 2026. Figures exclude sales tax, title/registration fees, dealer add-ons, and lease acquisition/disposition fees, which vary by state, lender, and dealer. Results are estimates for informational purposes only and do not constitute financial advice; confirm exact terms with your lender or leasing company before signing.

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