# Average Monthly Car Payment Calculator

## 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

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

## Formula

The formula to calculate the average monthly car payment is:

Where:

• is the monthly payment,
• is the loan amount,
• is the monthly interest rate (annual rate divided by 12 and converted to a decimal),
• 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.

## 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.