Calculate Monthly Car Payment
Following on this page
is a quick guide to help you calculate a monthly car payment based
on financing your car for various lengths of time at various
interest rates.
To use the monthly payment guide, simply
take the number of thousands of dollars financed and multiply that
by the cost per thousand financed.
For example: if you are going to
finance (bottom line) $15,876 for 60 months @ 8.5%, go to the 60
month financing table and find 8.5%. Then multiply the number of
thousands financed (in this case you will be financing 15.876
thousands) by the cost per $1,000 financed.
The formula would be:
15.876 x $20.52 = $325.78 per month.
The guide will be very useful for you to print out and take with you;
both when you are doing your preliminary research and when you get
into the dealer and into the nuts and bolts of the car deal.
Remember what we talked about when the salesperson tee's up the deal
for the dealership finance department, they will quote you a payment
range. They will probably plead ignorance to what the going finance
rate is telling you that it depends on several factors and that the
finance manager will be happy to discuss interest rates with you.
All of this is to get you comfortable with that monthly payment
range while keeping the interest rate (the finance charge!) as murky
as they can.
This guide will let you know within a few pennies what the interest
rate to monthly payment will be.
A good idea would be print these
tables out and take them with you as you do your car shopping.
During the heat of the negotiations and with all the different
figures that will be thrown at you, these
handy tables will help keep
your head straight.
Monthly Payment Tables:
|
24 Month
Financing |
36 Month
Financing |
|
Interest Rate |
Cost
Per
$1000 Financed |
Interest Rate |
Cost
Per
$1000 Financed |
|
5.00% |
$43.87 |
5.00% |
$29.97 |
|
6.00% |
$44.32 |
6.00% |
$30.42 |
|
6.50% |
$44.55 |
6.50% |
$30.65 |
|
6.75% |
$44.66 |
6.75% |
$30.76 |
|
7.00% |
$44.77 |
7.00% |
$30.88 |
|
7.25% |
$44.89 |
7.25% |
$30.99 |
|
7.50% |
$45.00 |
7.50% |
$31.11 |
|
8.00% |
$45.23 |
8.00% |
$31.34 |
|
8.50% |
$45.46 |
8.50% |
$31.57 |
|
9.00% |
$45.69 |
9.00% |
$31.80 |
|
9.50% |
$45.91 |
9.50% |
$32.03 |
|
10.00% |
$46.15 |
10.00% |
$32.27 |
|
10.50% |
$46.38 |
10.50% |
$32.50 |
|
11.00% |
$46.61 |
11.00% |
$32.74 |
|
11.50% |
$46.84 |
11.50% |
$32.98 |
|
12.00% |
$47.07 |
12.00% |
$33.21 |
|
|
48
Month Financing |
60 Month
Financing |
|
Interest
Rate |
Cost
Per
$1000 Financed |
Interest
Rate |
Cost
Per
$1000 Financed |
|
5.00% |
$23.03 |
5.00% |
$18.87 |
|
6.00% |
$23.49 |
6.00% |
$19.33 |
|
6.50% |
$23.72 |
6.50% |
$19.57 |
|
6.75% |
$23.83 |
6.75% |
$19.68 |
|
7.00% |
$23.95 |
7.00% |
$19.80 |
|
7.25% |
$24.06 |
7.25% |
$19.92 |
|
7.50% |
$24.18 |
7.50% |
$20.04 |
|
8.00% |
$24.41 |
8.00% |
$20.28 |
|
8.50% |
$24.65 |
8.50% |
$20.52 |
|
9.00% |
$24.89 |
9.00% |
$20.76 |
|
9.50% |
$25.12 |
9.50% |
$21.00 |
|
10.00% |
$25.36 |
10.00% |
$21.25 |
|
10.50% |
$25.60 |
10.50% |
$21.49 |
|
11.00% |
$25.85 |
11.00% |
$21.74 |
|
11.50% |
$26.09 |
11.50% |
$21.99 |
|
12.00% |
$26.33 |
12.00% |
$22.24 |
|
