**Introduction**

Calculating the average monthly car payment is a crucial step in managing your finances when purchasing a vehicle. To simplify this process, we’ll guide you through creating a user-friendly calculator using HTML and JavaScript. This calculator will help you determine your monthly car payment based on the loan amount, interest rate, and loan term.

**How to Use**

- Input the loan amount in dollars.
- Enter the annual interest rate as a percentage.
- Specify the loan term in years.
- Click the “Calculate” button to get the average monthly car payment.

**Formula**

The formula to calculate the average monthly car payment is:

$M=(+r)n−P⋅r⋅(+r)n $

Where:

- $M$ is the monthly payment,
- $P$ is the loan amount,
- $r$ is the monthly interest rate (annual rate divided by 12 and converted to a decimal),
- $n$ is the total number of payments (loan term multiplied by 12).

**Example**

Let’s consider a car loan of $25,000 with an annual interest rate of 5% for a term of 5 years.

$M=(+120.05 )5×12−⋅120.05 ⋅(+120.05 )5×12 $

**FAQs**

**Q: Can I use this calculator for any currency?**

A: Yes, as long as you input the loan amount in the same currency you wish to receive the result.

**Q: Is the interest rate input in annual or monthly terms?**

A: Input the annual interest rate, and the calculator will convert it to a monthly rate for calculations.

**Q: Why is the result not in currency format?**

A: The result is presented as a numeric value; you can format it as needed based on your local currency.

**Conclusion**

This calculator provides a simple yet effective way to estimate your average monthly car payment. By understanding the formula and using the provided code, you can make informed financial decisions when planning to purchase a vehicle.