Cost Calculator AI
Cars & VehiclesDual-Direction

Car Payment Calculator

Calculate your monthly car payment from a purchase price, or work backward from a target monthly budget to find the maximum sticker price you can afford.

Payment Mode & Terms

Calculation Result
Monthly Payment
$483.32/mo
Vehicle Sticker Price$28,000.00
Principal Financed$25,000.00
Total Interest Paid$3,999.20
Total Cost (Loan + Down)$31,999.20

Bidirectional Car Payment Formula

Payment = Principal ร— Amortization Factor | Max Price = (Target Payment / Factor + Down Payment) / (1 + Tax Rate)
  • Forward Calculation: Solves for monthly payment given price, interest rate, term, and down payment.
  • Reverse Calculation: Solves for maximum vehicle price from desired monthly budget target.

Step-by-Step Worked Example

Scenario: Finding vehicle price for a strict $450/month budget with $3,000 down at 6% APR over 60 months

Calculation Steps:

  1. Max Borrowable Loan Principal = $450 ร— [ (1 โˆ’ (1.005)^โˆ’60) / 0.005 ] = $23,274.00
  2. Total Out-the-Door Purchasing Power = $23,274 + $3,000 = $26,274.00
  3. Max Vehicle Price Before Tax = $26,274 / 1.07 = $24,555.14
Result: To keep payments at $450/month, target a vehicle priced at or below $24,555.

How to Use This Calculator

  1. 1Choose your calculation mode: Calculate Monthly Payment OR Calculate Affordable Price.
  2. 2Enter the price or target payment depending on chosen mode.
  3. 3Set your down payment, interest rate (APR), and loan duration in months.

Assumptions & Limitations

  • Assumes level monthly payments with interest compounding monthly.

Frequently Asked Questions

How do extra payments affect my car loan?

Making extra payments directly reduces the principal balance, which shortens your loan payoff timeline and decreases total interest charges.

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