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$20,000 Auto Loan Payment Over 3 Years

A 3-year car loan of $20,000 means 36 equal payments. Start with a rate of 6 percent and adjust it as you like.

Expect 36 payments of about $608.44. Together they repay the $20,000 loan plus $1,904 of interest.

$
%
years
$
Monthly payment
$608.44
Total interest
$1,904
Total paid
$21,904
Year by year
YearPrincipal paidInterest paidBalance left
1$6,272$1,029$13,728
2$6,659$643$7,069
3$7,069$232$0
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How the payment is worked out

Lenders use the standard loan formula. The yearly rate of 6 percent becomes a monthly rate of 0.5 percent. The term of 3 years becomes 36 payments. The payment is the loan of $20,000 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 36 times.

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Worked example

Say you borrow $20,000 at 6 percent for 3 years. The payment is $608.44 a month. In month one, $100.00 pays interest and $508.44 reduces the balance.

Over the whole loan you pay $21,904. About 10 cents of each borrowed dollar goes to interest.

Questions about this calculator

Does adding a year to a $20,000 car loan over 3 years change the cost much?

Yes. At 6 percent a 3-year term costs $1,904 in interest. A 4-year term would lower the payment to $469.70 but raise interest to $2,546.

Should you put more down on a $20,000 car loan over 3 years?

A bigger down payment means borrowing less. On this $20,000 loan, putting down $2,000 more would lower the payment by about $60.84 and the interest by about $190. Sales tax, fees and insurance are not included.

What if the rate on a $20,000 car loan over 3 years were one point higher?

The payment would rise from $608.44 to $617.54, which is $9.10 more each month. One point lower would give $599.42.

Would paying $60 extra each month shorten a $20,000 car loan over 3 years?

Yes. On this $20,000 loan an extra $60 each month ends the loan 3 months sooner and saves $185 of interest.

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