Our auto loan payment calculator can help estimate the monthly car payments of your next vehicle. Enter the detail about your down payment, cost of car, loan term and more. You’ll easily see how these factors may affect your monthly payment. Get started with our auto payment calculator and get an estimate of your monthly car payment in an instant.


How To Calculate Monthly Car Payments

Besides a house or college tuition, buying a car is one of the most expensive purchases that a person can make. Understanding the cost to purchase and operate a vehicle monthly is essential and something that is often underestimated. It’s also important not to lose sight of the total cost of buying a car when trying to lower the monthly payment with a longer length car loan.

Average Monthly Operating Cost

Yearly Salary $43,422
5-Year Loan Payment $783
Gas (Based on SUV/Truck) $311
Car Insurance $148
Car Maintenace $112
Car Insurance $1,354
Monthly Operating Cost Closed
Monthly Salary Percentage 37.4%

Car Loan Factors Explained

In 2022, the average new car price exceeded $47,000, and the median salary is $53,924 for a full-time worker. After paying income taxes on a $53,924 salary, the take-home pay is reduced to $43,422. The average used car price has surged close to 30% in recent years, bringing the average transaction to $27,633. The old rule of spending 10% – 15% of your monthly income on transportation expenses is hard to stick to, especially when you factor in rising gas prices.

The average American might spend more than 20% of their monthly income on the vehicle’s payment alone. Once car insurance, gas, and maintenance are factored in, the percentage of income being spent on transportation nearly doubles. Driving a small, fuel-efficient car can save 25¢ per mile in operating costs compared to a large SUV or truck.