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How to Quickly Calculate Your Monthly Payments

If you know your credit score, you can estimate the interest rate you're likely to qualify for.

Knowing this, you can quickly figure out what your monthly payment will be using a variety of different loan periods (such as 24 months, 36 months, etc).

The following chart shows you what your monthly payment will be for every $1,000 financed.

If you need to finance $20,000, simply multiply the figures in the chart by 20 to get your monthly payment.

Interest 24 mo 36 mo 48 mo 60 mo 72 mo
0% $41.67 $27.78 $20.83 $16.67 $13.89
1% $42.10 $28.21 $21.26 $17.09 $14.32
2% $42.54 $28.64 $21.70 $17.53 $14.75
3% $42.98 $29.08 $22.13 $17.19 $15.19
4% $43.42 $29.52 $22.58 $18.42 $15.65
5% $43.87 $29.97 $23.03 $18.87 $16.10
6% $44.32 $30.42 $23.49 $19.33 $16.57
7% $44.77 $30.88 $23.95 $19.80 $17.05
8% $45.23 $31.34 $24.41 $20.28 $17.53
9% $45.68 $31.80 $24.89 $20.76 $18.03
10% $46.14 $32.27 $25.36 $21.25 $18.53
12% $47.07 $33.21 $26.33 $22.24 $19.55
15% $48.48 $34.66 $27.83 $23.78 $21.14
20% $50.89 $37.16 $30.43 $26.49 $23.95

You can also use this chart to figure out the maximum amount you can finance based on the payment you can afford.

Let's assume you can afford a payment of $400 and you estimate that you will qualify for a 7% interest loan. To calculate the maximum amount you can finance, simply divide $400 by the figures in the 7% row.

If you were to get a 24 month loan, you would divide $400 by $44.77 which equals 8.9. Multiply that by 1,000 and you get your answer: $8,900 is the maximum amount you can finance.

If you extend the loan out to 60 months, the maximum amount you can finance will be $20,200. ($400 divided by $19.80) x 1,000.

This chart is a great way to quickly play around with numbers and get a good feel for what your monthly payments will be as well the maximum amount you can finance based on what you can afford.

3 Steps Every Car Buyer Needs to Take to Save Maximum Money

The key to getting the best deal is to gather price or lease bids from as many local dealers as possible. Then shop that best price around until no one can beat it. Here are the steps:

Step 1 Get Prices From My Trusted Network

Select the vehicle you're interested in to see if there are local dealers in my network who will provide you with their best upfront price. You will get direct access to an internet sales manager who you can further negotiate with online (no need to visit dealership).
Select Vehicle to Get Local Pricing

Step 2 Get Prices From TrueCar / CarsDirect

TrueCar, and CarsDirect are my top 2 online price quote recommendations. These services show you pre-negotiated prices from dealers closest to you - and the deals are usually pretty decent. But remember, you can still negotiate further.

Step 3 Complete my Checklist

Follow this up with my checklist to make sure you squeeze out every last bit of savings.
- Gregg Fidan

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About The Author

Gregg Fidan Gregg Fidan is the founder of RealCarTips. After being ripped off on his first car purchase, he devoted several years to figuring out the best ways to avoid scams and negotiate the best car deals. He has written hundreds of articles on the subject of car buying and taught thousands of car shoppers how to get the best deals.
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