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$10,000 Auto Loan Payment Over 6 Years

A 6-year car loan of $10,000 means 72 equal payments. Start with a rate of 7.5 percent and adjust it as you like.

That makes $172.90 a month at the start. The interest over the whole loan comes to $2,449.

$
%
years
$
Monthly payment
$172.90
Total interest
$2,449
Total paid
$12,449
Year by year
YearPrincipal paidInterest paidBalance left
1$1,371$703$8,629
2$1,478$597$7,151
3$1,592$482$5,558
4$1,716$359$3,842
5$1,849$225$1,993
6$1,993$82$0
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How the payment is worked out

Lenders use the standard loan formula. The yearly rate of 7.5 percent becomes a monthly rate of 0.625 percent. The term of 6 years becomes 72 payments. The payment is the loan of $10,000 times the monthly rate, divided by one minus one over the growth factor, where the growth factor is one plus the monthly rate, multiplied by itself 72 times.

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Worked example

Say you borrow $10,000 at 7.5 percent for 6 years. The payment is $172.90 a month. In month one, $62.50 pays interest and $110.40 reduces the balance.

Part of the way through, after 3 years, the balance is still $5,558. That is 56 percent of the original loan. Early payments mostly cover interest.

Questions about this calculator

Is 6 years the right length for a $10,000 car loan?

It depends on the monthly payment you can carry. At 7.5 percent this term costs $172.90 a month. A 4-year term would cost $241.79 a month and $1,606 in interest, compared with $2,449 over 6 years.

Does adding a year to a $10,000 car loan over 6 years change the cost much?

Yes. At 7.5 percent a 6-year term costs $2,449 in interest. A 7-year term would lower the payment to $153.38 but raise interest to $2,884.

Should you put more down on a $10,000 car loan over 6 years?

A bigger down payment means borrowing less. On this $10,000 loan, putting down $1,000 more would lower the payment by about $17.29 and the interest by about $245. Sales tax, fees and insurance are not included.

What if the rate on a $10,000 car loan over 6 years were one point higher?

The payment would rise from $172.90 to $177.78, which is $4.88 more each month. One point lower would give $168.10.

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This page is for education only and is not financial or tax advice.