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Auto Loan Payment at 10 Percent: $30,000 Over 5 Years
This page sets the car loan rate to 10 percent as a starting point. It is a what-if figure and not a quote. Replace it with the rate on your own offer.
The starting payment is $637.41 a month. Over 60 payments you would pay $8,245 in interest.
How the payment is worked out
Think of the payment as the amount that makes all 60 future payments worth exactly $30,000 at the start with a monthly rate of 0.8333 percent. Written out it is the loan times the monthly rate, divided by one minus one over one plus the monthly rate, raised to the power of 60.
Auto loan example
Take $30,000 at 10 percent over 5 years. The monthly payment is $637.41. In the first month $250.00 goes to interest and $387.41 goes to principal.
After 3 years you would still owe $13,813. That is 46 percent of the loan. The rest of the payments go mostly to principal.
Questions about this calculator
How much would one point change the payment on a $30,000 car loan at 10 percent?
A rate one point higher, 11 percent, would make the payment $652.27 a month, which is $14.86 more. A rate one point lower, 9 percent, would make it $622.75.
How much of the first payment on a 10 percent car loan is interest?
$250.00 of the $637.41 first payment is interest. The rest reduces the balance.
Would a 4-year term at 10 percent save interest on $30,000?
It would raise the payment to $760.88 and cut total interest from $8,245 to $6,522.
What would an extra $60 a month do to a $30,000 car loan at 10 percent?
It would end the loan 6 months sooner and save $940 of interest. Check first that the lender charges no prepayment fee.
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This page is for educational purposes only and is not financial or tax advice.