120 month auto loan calculator
This 120 month auto loan calculator shows what a 10 years car loan costs per month and in total interest.
Amortization schedule
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | $2,097.86 | $1,984.54 | $27,202.14 |
| 2 | $2,249.51 | $1,832.89 | $24,952.63 |
| 3 | $2,412.12 | $1,670.28 | $22,540.51 |
| 4 | $2,586.50 | $1,495.90 | $19,954.01 |
| 5 | $2,773.48 | $1,308.92 | $17,180.53 |
| 6 | $2,973.97 | $1,108.43 | $14,206.56 |
| 7 | $3,188.98 | $893.42 | $11,017.58 |
| 8 | $3,419.50 | $662.90 | $7,598.08 |
| 9 | $3,666.70 | $415.70 | $3,931.38 |
| 10 | $3,931.38 | $150.64 | $0.00 |
Terms beyond 84 months
Loans of 96 months or more are unusual and expensive. They keep payments low on expensive vehicles but guarantee years of negative equity risk. A cheaper car or a larger down payment is usually a better solution.
120 months versus 60 months on $29,300
On $29,300 at 7%, 120 months costs $340.20 a month and $11,524 in interest. Compared with 60 months ($580.18 a month, $5,510 interest), the payment is $239.98 lower and the interest $6,013 higher.
$29,300 financed: payment by loan length
At 7% APR, financing $29,300 (the $30,000 price plus 6% sales tax and $500 in fees minus $3,000 down) costs $580.18 a month over 60 months and $442.22 over 84 months. The longer loan lowers the payment by $137.96 but adds $2,335 in interest. Going the other way, 36 months raises the payment to $904.70 and cuts total interest to $3,269.
| Term | Monthly payment | Total interest | Total paid |
|---|---|---|---|
| 3-year | $904.70 | $3,269 | $32,569 |
| 4-year | $701.62 | $4,378 | $33,678 |
| 5-year | $580.18 | $5,510 | $34,810 |
| 6-year | $499.54 | $6,667 | $35,967 |
| 7-year | $442.22 | $7,846 | $37,146 |
How the interest rate changes a 10-year loan
On the same $29,300 over 10 years, each full percentage point of APR moves the payment by about $15.29 and total interest by about $1,835.
| APR | Monthly payment | Total interest | Difference vs 7% |
|---|---|---|---|
| 5% | $310.77 | $7,993 | −$3,531 |
| 6% | $325.29 | $9,735 | −$1,789 |
| 7% | $340.20 | $11,524 | +$0 |
| 8% | $355.49 | $13,359 | +$1,835 |
| 9% | $371.16 | $15,239 | +$3,716 |
What a bigger down payment does
Putting $6,000 (20%) down on this $30,000 car lowers the loan from $32,300 to $26,300.
| Down payment | Amount financed | Monthly payment | Total interest |
|---|---|---|---|
| $0 | $32,300 | $375.03 | $12,704 |
| $3,000 (10%) | $29,300 | $340.20 | $11,524 |
| $6,000 (20%) | $26,300 | $305.37 | $10,344 |
Payment per $10,000 over 10 years
A quick rule of thumb: divide the amount you finance by 10,000 and multiply by the figure below to estimate your payment over 10 years.
| APR | Payment per $10,000 | Interest per $10,000 |
|---|---|---|
| 5% | $106.07 | $2,728 |
| 7% | $116.11 | $3,933 |
| 9% | $126.68 | $5,201 |
| 12% | $143.47 | $7,217 |
Paying extra
Adding $100 a month to this loan would pay it off 35 months sooner and save $3,628 in interest, as long as your lender applies extra money to principal and charges no prepayment penalty. Ask before you start.
Can you afford a $30,000 car?
A common rule of thumb, the 20/4/10 guideline, suggests 20% down, a term of at most 4 years and total car costs under 10% of gross income. On payment alone, $340.20 a month points to a gross income of roughly $40,800 a year to stay at 10%, before insurance, fuel and maintenance. This loan departs from the guideline because the down payment is 10% rather than 20% and the term of 120 months is longer than 48, so the payment is lower than a stricter plan would give but the loan costs more overall.
Will you owe more than the car is worth?
New cars commonly lose around 20% of their value in the first year and roughly 15% a year after that, though this varies by model. Using that rough rule on a $30,000 car, the loan balance stays above the estimated value through year 5. Gap insurance can cover the difference if the car is totaled while you are underwater.
| End of | Loan balance | Est. car value | Equity |
|---|---|---|---|
| Year 1 | $27,202 | $24,000 | −$3,202 |
| Year 2 | $24,953 | $20,400 | −$4,553 |
| Year 3 | $22,541 | $17,400 | −$5,141 |
| Year 4 | $19,954 | $14,700 | −$5,254 |
| Year 5 | $17,181 | $12,600 | −$4,581 |
Frequently asked questions
How much is the monthly payment on a $30,000 car?
At 7% over 10 years, financing $29,300 costs about $340.20 a month with $11,524 in total interest. Change the inputs above to match your own quote.
Is a longer loan a good idea on $29,300?
Stretching to 84 months would lower the payment to $442.22 but cost $7,846 in interest, against $701.62 and $4,378 at 48 months. That is $3,468 more for the longer term.
Should I include sales tax and fees in the loan?
Here tax and fees add $2,300 to the loan. Financing them costs about $905 in extra interest, so paying them in cash saves that amount.
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Estimates from standard loan formulas, not a loan offer or financial advice. Example rates are assumptions: use your own quote.