Car Loan Total Interest Calculator
See the total interest you’ll pay over the life of a car loan, plus the monthly payment and total repaid, for any rate and term.
How it works
Payment = P·r ÷ (1 − (1 + r)⁻ⁿ), r = APR ÷ 1200 · Total interest = payment × months − principal
A car loan is a fully amortized loan: each fixed payment covers the month’s interest first, and the rest reduces the balance. Early payments are mostly interest, so stretching the term to lower the monthly payment can sharply increase the total interest even at the same rate. This computes the standard amortized payment and multiplies it out to reveal the true cost of borrowing over the full term.
Worked example
Borrow $30,000 at 6.5% APR for 60 months. The monthly rate is 0.5417%, giving a payment of about $587.01. Over 60 months you repay $35,220, so total interest is roughly $5,220 — about 17.4% of the amount financed.
Frequently asked questions
How does a longer term change total interest?
A longer term lowers the monthly payment but keeps you in debt longer, so you pay interest on the balance for more months. The same loan over 72 months instead of 48 can cost hundreds or thousands more in total interest, even at an identical rate.
Is APR the same as the interest rate?
For a simple car loan they are usually very close. APR is meant to fold in certain lender fees, so it can be slightly higher than the nominal rate; this calculator treats the figure you enter as the effective annual rate.
How can I pay less interest?
Choose a shorter term, make a larger down payment to borrow less, secure a lower rate, or pay extra toward principal. Because interest accrues on the balance, anything that lowers the balance faster reduces the total.
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Educational estimate — real figures vary by vehicle, lender, dealer and local rules.