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Auto Loan Payment at 6 Percent: $30,000 Over 5 Years
Use 6 percent here to see the cost of a $30,000 car loan over 5 years. The payment starts at $579.98 a month. Change the rate to match a real offer.
On the starting figures the payment is $579.98 a month and the total interest is $4,799.
How the payment is worked out
The standard loan formula has three inputs: the amount of $30,000, the monthly rate of 0.5 percent and 60 payments. Multiply the amount by the rate. Then divide the result by one minus one over the growth factor, which is one plus the monthly rate raised to the power of 60.
Auto loan example
Work it through with $30,000, 6 percent and 5 years. Each payment is $579.98. The first one sends $150.00 to interest and the remaining $429.98 to principal.
Part of the way through, after 3 years, the balance is still $13,086. That is 44 percent of the original loan. Early payments mostly cover interest.
Questions about this calculator
How much would one point change the payment on a $30,000 car loan at 6 percent?
A rate one point higher, 7 percent, would make the payment $594.04 a month, which is $14.05 more. A rate one point lower, 5 percent, would make it $566.14.
How much of the first payment on a 6 percent car loan is interest?
$150.00 of the $579.98 first payment is interest. The rest reduces the balance.
Would a 4-year term at 6 percent save interest on $30,000?
It would raise the payment to $704.55 and cut total interest from $4,799 to $3,818.
What would an extra $60 a month do to a $30,000 car loan at 6 percent?
It would end the loan 6 months sooner and save $529 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.