Total Loan Cost Calculator Calculator
Frequently Asked Questions
What is the total cost of a car loan?
The total cost includes the principal (loan amount), all interest paid over the loan term, and any fees (origination, processing, etc.). For example, a $25,000 loan at 5.5% APR for 60 months costs approximately $28,600 total - $25,000 principal + $3,600 interest.
How much interest will I pay on my car loan?
Interest depends on loan amount, interest rate, and loan term. A $25,000 loan at 5.5% for 60 months costs about $3,600 in interest. A $30,000 loan at 8% for 72 months costs about $8,400 in interest. Use this calculator for your specific loan details.
Why is the total cost higher than the loan amount?
The total cost is higher because interest is charged on the borrowed amount over time. Interest rates represent the cost of borrowing money. The longer the loan term and higher the rate, the more interest you pay, increasing the total cost significantly.
How can I reduce the total cost of my loan?
To reduce total cost: get a lower interest rate (shop around, improve credit), choose shorter loan terms (36-48 months vs 72-84 months), make extra principal payments, or make a larger down payment to reduce the loan amount. Even small rate reductions can save thousands.
