Car Payment Calculator
Monthly payment, total cost & amortization — Islamic Finance (Murabaha) & conventional
Whether you're financing through a traditional bank loan or exploring Islamic Finance (Murabaha) options, our car payment calculator shows your exact monthly payment, total cost, and full amortization schedule — before you walk into a dealership.
For Muslim buyers, we've built a dedicated Murabaha mode that uses profit margin framing instead of interest (riba) language. Both modes generate a downloadable PDF and CSV amortization schedule you can take to any lender for comparison.
How to Use the Car Payment Calculator
- 1 Select Islamic Finance (Murabaha) or Conventional Loan mode using the tabs.
- 2 Enter the car price and adjust the down payment slider to your preferred amount.
- 3 Choose your loan term (24–84 months) and set the profit margin or interest rate.
- 4 Your monthly payment updates instantly. Expand View Full Amortization Table to see every payment, or download as PDF or CSV.
A longer loan term lowers your monthly payment but significantly increases total cost. A 72-month loan at 5.9% on a $35,000 car costs roughly $5,800 more than a 48-month loan. The amortization table makes this easy to see.
Frequently Asked Questions
What is Murabaha car financing?
Murabaha is a Sharia-compliant financing structure where the lender buys the car and sells it to you at a pre-agreed marked-up price. You pay in installments without paying interest (riba). The monthly payment amounts are similar to conventional loans, but the contract is fundamentally different and permissible under Islamic law.
How is the monthly payment calculated?
For conventional loans: Payment = Principal × [r(1+r)^n] / [(1+r)^n−1], where r is the monthly rate and n is the number of months. For Murabaha, the total agreed price is divided equally across months — same formula, different contract framing.
What is a good car loan interest rate?
As of 2025, average new car loan rates range from 5–8% for buyers with good credit (700+). Used car loans typically run 1–3% higher. Credit unions often offer 0.5–1% lower rates than dealerships. Always compare the APR, not just the monthly payment.
Should I make a larger down payment?
A larger down payment reduces your monthly payment, total profit/interest paid, and the risk of going underwater (owing more than the car is worth). We recommend at least 20% down on a new car. Use our depreciation calculator to see how quickly the car loses value.