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Auto Loan Payment at 8 Percent: $30,000 Over 5 Years
Use 8 percent here to see the cost of a $30,000 car loan over 5 years. The payment starts at $608.29 a month. Change the rate to match a real offer.
That makes $608.29 a month at the start. The interest over the whole loan comes to $6,498.
How the payment is worked out
Lenders use the standard loan formula. The yearly rate of 8 percent becomes a monthly rate of 0.6667 percent. The term of 5 years becomes 60 payments. The payment is the loan of $30,000 times the monthly rate, divided by one minus one over the growth factor, where the growth factor is one plus the monthly rate, multiplied by itself 60 times.
Auto loan example
Say you borrow $30,000 at 8 percent for 5 years. The payment is $608.29 a month. In month one, $200.00 pays interest and $408.29 reduces the balance.
Over the whole loan you pay $36,498. About 22 cents of each borrowed dollar goes to interest.
Questions about this calculator
How much would one point change the payment on a $30,000 car loan at 8 percent?
A rate one point higher, 9 percent, would make the payment $622.75 a month, which is $14.46 more. A rate one point lower, 7 percent, would make it $594.04.
How much of the first payment on a 8 percent car loan is interest?
$200.00 of the $608.29 first payment is interest. The rest reduces the balance.
Would a 4-year term at 8 percent save interest on $30,000?
It would raise the payment to $732.39 and cut total interest from $6,498 to $5,155.
What would an extra $60 a month do to a $30,000 car loan at 8 percent?
It would end the loan 6 months sooner and save $728 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.