How much does a longer car loan really cost? The Points Frog car loan calculator answers with the average new car. Kelley Blue Book put the average transaction price at $50,562 in September 2026. With $5,000 down, that leaves $45,562 to finance.
At 7.54%, the Federal Reserve's average rate on 60-month new-car loans at commercial banks in August 2026, the payment is $914 a month. Over five years, the interest comes to $9,268.
Stretch the same loan to 84 months and the payment falls to $700. But the interest climbs to $13,216, or $3,948 more. You pay $214 less each month, and you keep paying for two more years.
The same loan at five lengths
The calculator runs one loan across every common term at the same rate. Here is $45,562 at 7.54%:
| Length | Monthly payment | Total interest |
|---|---|---|
| 36 months | $1,418 | $5,490 |
| 48 months | $1,102 | $7,358 |
| 60 months | $914 | $9,268 |
| 72 months | $789 | $11,221 |
| 84 months | $700 | $13,216 |
Each extra year adds between about $1,870 and $2,000 in interest. The shortest loan has the highest payment, $1,418 a month, but the lowest cost.
How the interest adds up
Car loans charge simple interest on what you still owe. Each month, the lender takes the annual rate divided by 12 and multiplies it by the balance. Your fixed payment covers that interest first. The rest pays down the loan.
That is why early payments carry the most interest. In the first year of the 60-month example, $3,170 of the payments goes to interest and $7,796 to the loan. By the fifth year, interest is down to $435.
A longer loan keeps the balance high for longer, so the interest keeps running. The page also notes that long loans make it more likely you will owe more than the car is worth for years. That hurts if you sell the car, trade it in or total it.
What moves the answer most
Three things set the cost: the amount, the rate and the length.
The rate is easy to overlook. On the same $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. The page's rate table shows how wide the range can be. On a $40,000 loan over 60 months, interest is $4,200 at 4% and $20,944 at 18%.
The length and the rate work together. The calculator uses your rate for every length, and the page notes that lenders often charge more for longer loans. In the Fed's August 2026 figures, the 72-month average, 7.17%, was actually a little below the 60-month average. Even so, the longer loan costs more. Run the calculator at 7.17% for 72 months and the interest is $10,635. That is still $1,367 more than 60 months at 7.54%.
Used-car loans and borrowers with lower credit scores usually pay more than these averages. The page suggests getting pre-approved by a bank or credit union before you shop, so you have a rate to compare with the dealer's.
What the calculator leaves out
It models a simple-interest loan with fixed monthly payments. Sales tax and fees count only if you enter them. Tax is applied to the price after any trade-in, as most states do. Some states tax the full price, and some have no sales tax. Fees you roll into the loan, such as title, registration and documentation, are added to the amount financed, so you pay interest on them too.
It is an educational estimate, not financial advice. Your lender's rate, fees and terms decide the real cost. The page's advice is to compare the APR and the total of payments on the loan disclosure before you sign.
Where the figures come from
The average price is Kelley Blue Book's average transaction price for a new vehicle in September 2026, published by Cox Automotive. The rates are from the Federal Reserve's G.19 consumer credit release: average rates on new-car loans at commercial banks in August 2026. They were 7.47% over 48 months, 7.54% over 60 and 7.17% over 72.
Use it on your own site
The car loan calculator is free to embed on a blog or site with copy-and-paste code, and it carries no ads or tracking. Here is how to embed it.
Source: Kelley Blue Book average transaction price, Cox Automotive, September 2026; Federal Reserve G.19 new-car loan rates via FRED, August 2026. Figures are educational estimates, not financial advice.