Car loan calculator: how much interest will you pay?

It depends on the amount, the rate and the length. Financing $45,562 (the $50,562 average new car with $5,000 down) at 7.54% for 60 months costs $9,268 in interest, with a payment of $914 a month. Stretch the same loan to 84 months and the interest grows to $13,216.

Car loans charge simple interest on the balance: each month's interest is the annual rate divided by 12, times what you still owe. Your fixed payment covers that interest first and the rest pays down the loan, so early payments carry the most interest. The payment is the amount borrowed × r ÷ (1 − (1 + r)^−n), where r is the monthly rate and n the number of payments.

It lowers the payment but raises the cost. On $45,562 at 7.54%, 84 months means $700 a month instead of $914 over 60, but $3,948 more interest. Long loans also make it more likely you'll owe more than the car is worth for years, which hurts if you sell, trade in or total it. Longer loans often carry higher rates too.

For comparison, new-car loans at commercial banks averaged 7.47% over 48 months, 7.54% over 60 and 7.17% over 72 in August 2026, according to the Federal Reserve. Used-car loans and borrowers with lower credit scores usually pay more. Getting pre-approved by a bank or credit union before you shop gives you a rate to beat at the dealer.

On $45,562 over 60 months, cutting the rate by one point, from 7.54% to 6.54%, saves $1,291 in interest and $22 a month.