Compare terms with the same amount and rate, without extra payments.

Term

Monthly

Total interest

36 months

$626.73

$2,562.15

48 months

$488.26

$3,436.41

60 months

$405.53

$4,331.62

72 months

$350.66

$5,247.98

Monthly rounded payments; final payment reconciles the remaining balance.

Month

Payment

Principal

Interest

Balance

$488.26

$354.93

$133.33

$19,645.07

$488.26

$357.29

$130.97

$19,287.78

$488.26

$359.67

$128.59

$18,928.11

$488.26

$362.07

$126.19

$18,566.04

$488.26

$364.49

$123.77

$18,201.55

$488.26

$366.92

$121.34

$17,834.63

$488.26

$369.36

$118.90

$17,465.27

$488.26

$371.82

$116.44

$17,093.45

$488.26

$374.30

$113.96

$16,719.15

$488.26

$376.80

$111.46

$16,342.35

$488.26

$379.31

$108.95

$15,963.04

$488.26

$381.84

$106.42

$15,581.20

$488.26

$384.39

$103.87

$15,196.81

$488.26

$386.95

$101.31

$14,809.86

$488.26

$389.53

$98.73

$14,420.33

$488.26

$392.12

$96.14

$14,028.21

$488.26

$394.74

$93.52

$13,633.47

$488.26

$397.37

$90.89

$13,236.10

$488.26

$400.02

$88.24

$12,836.08

$488.26

$402.69

$85.57

$12,433.39

$488.26

$405.37

$82.89

$12,028.02

$488.26

$408.07

$80.19

$11,619.95

$488.26

$410.79

$77.47

$11,209.16

$488.26

$413.53

$74.73

$10,795.63

$488.26

$416.29

$71.97

$10,379.34

$488.26

$419.06

$69.20

$9,960.28

$488.26

$421.86

$66.40

$9,538.42

$488.26

$424.67

$63.59

$9,113.75

$488.26

$427.50

$60.76

$8,686.25

$488.26

$430.35

$57.91

$8,255.90

$488.26

$433.22

$55.04

$7,822.68

$488.26

$436.11

$52.15

$7,386.57

$488.26

$439.02

$49.24

$6,947.55

$488.26

$441.94

$46.32

$6,505.61

$488.26

$444.89

$43.37

$6,060.72

$488.26

$447.86

$40.40

$5,612.86

$488.26

$450.84

$37.42

$5,162.02

$488.26

$453.85

$34.41

$4,708.17

$488.26

$456.87

$31.39

$4,251.30

$488.26

$459.92

$28.34

$3,791.38

$488.26

$462.98

$25.28

$3,328.40

$488.26

$466.07

$22.19

$2,862.33

$488.26

$469.18

$19.08

$2,393.15

$488.26

$472.31

$15.95

$1,920.84

$488.26

$475.45

$12.81

$1,445.39

$488.26

$478.62

$9.64

$966.77

$488.26

$481.81

$6.45

$484.96

$488.19

$484.96

$3.23

$0.00

What this scenario helps you see

To compare offers fairly, hold the amount financed constant first. A dealer may show a lower payment by changing the deposit, term, financed products, or trade allowance. Record those differences rather than attributing every change to the interest rate.

The four-year schedule repays principal faster than a six-year schedule at the same rate. The comparison table makes both the monthly increase and total-interest reduction visible so you can assess the tradeoff against cash flow.

APR can include fees that are not part of the contractual interest rate. The schedule uses the nominal annual rate entered here. Check the lender’s amount-financed, finance-charge, payment, and APR disclosures before accepting.

Test a different rate

Same $20,000 balance and 48-month term. Hypothetical rates; no current offers.
Annual interest	Monthly payment	Total interest
6%	$469.70	$2,545.66
8%	$488.26	$3,436.41
10%	$507.25	$4,348.13

Method and limitations

The model uses fixed monthly amortization: M = P × r ÷ (1 − (1 + r)^−n), with principal P, monthly rate r, and n payments. At zero interest, payment is P ÷ n. Interest and payments are rounded monthly, and the last payment reconciles the balance. See the complete loan methodology for assumptions and sources.

Daily-interest contracts, prepaid finance charges, late payments, and lender rules can produce a different result. This page is an educational example, not a rate quote or approval. CFPB explains loan terminology and disclosures.

Questions about this example

Does $20,000 mean the car’s sticker price?

In this scenario it means the amount financed, with no deposit or additional fees. Your actual sticker price may differ if you pay cash down or finance other costs.

Why compare 48 and 72 months?

They show how stretching the same balance changes payment and total interest. A lower required payment can come with a longer debt period and higher cost.

Can I compare an offer with fees?

Yes, but first decide whether each fee is paid in cash or financed. Add only financed charges to principal and compare APR disclosures separately.

Is 8% a typical current used-car rate?

No claim is made about current rate levels. It is a hypothetical input used to explain the calculation.

$20,000 at 8% for 48 months: loan comparison

Your numbers, a clearer picture.

Payment breakdown

Inputs

Compare the numbers

What this scenario helps you see

Test a different rate

Method and limitations

Questions about this example

The right car starts with the right budget.