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Auto Loan Payment at 9 Percent: $30,000 Over 5 Years
Use 9 percent here to see the cost of a $30,000 car loan over 5 years. The payment starts at $622.75 a month. Change the rate to match a real offer.
The starting payment is $622.75 a month. Over 60 payments you would pay $7,365 in interest.
How the payment is worked out
Here is the formula in plain words. The payment equals the loan times the monthly rate over one minus a discount factor. The discount factor is one divided by one plus the monthly rate, multiplied out 60 times. With 9 percent a year the monthly rate is 0.75 percent. The loan here is $30,000.
Auto loan example
Run the numbers for a $30,000 car loan at 9 percent over 5 years. The payment is $622.75. Of the first payment, $225.00 is interest.
The total paid is $37,365. Interest is $7,365 of that. That works out to 25 cents for each dollar borrowed.
Questions about this calculator
How much would one point change the payment on a $30,000 car loan at 9 percent?
A rate one point higher, 10 percent, would make the payment $637.41 a month, which is $14.66 more. A rate one point lower, 8 percent, would make it $608.29.
How much of the first payment on a 9 percent car loan is interest?
$225.00 of the $622.75 first payment is interest. The rest reduces the balance.
Would a 4-year term at 9 percent save interest on $30,000?
It would raise the payment to $746.55 and cut total interest from $7,365 to $5,834.
What would an extra $60 a month do to a $30,000 car loan at 9 percent?
It would end the loan 6 months sooner and save $832 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.