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$20,000 Auto Loan Payment Over 5 Years

If you are thinking about borrowing $20,000 for 5 years, this page gives the payment and the full cost. It starts from 7 percent. Change it to match your own.

On the starting figures the payment is $396.02 a month and the total interest is $3,761.

$
%
years
$
Monthly payment
$396.02
Total interest
$3,761
Total paid
$23,761
Year by year
YearPrincipal paidInterest paidBalance left
1$3,462$1,290$16,538
2$3,712$1,040$12,826
3$3,981$772$8,845
4$4,268$484$4,577
5$4,577$175$0
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How the payment is worked out

Every payment on a fixed loan is the same size. To find it, multiply $20,000 by the monthly rate of 0.5833 percent. Then divide by one minus the reciprocal of one plus that rate raised to the power of 60. That power is the number of monthly payments in 5 years.

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Worked example

Worked through, $20,000 at 7 percent for 5 years gives a payment of $396.02. The first month splits into $116.67 of interest and $279.36 of principal.

After 3 years of payments you would still owe $8,845. Total interest over the whole loan is $3,761.

Questions about this calculator

Would paying $40 extra each month shorten a $20,000 car loan over 5 years?

Yes. On this $20,000 loan an extra $40 each month ends the loan 6 months sooner and saves $418 of interest.

Is 5 years the right length for a $20,000 car loan?

It depends on the monthly payment you can carry. At 7 percent this term costs $396.02 a month. A 7-year term would cost $301.85 a month and $5,356 in interest, compared with $3,761 over 5 years.

Does adding a year to a $20,000 car loan over 5 years change the cost much?

Yes. At 7 percent a 5-year term costs $3,761 in interest. A 6-year term would lower the payment to $340.98 but raise interest to $4,551.

Should you put more down on a $20,000 car loan over 5 years?

A bigger down payment means borrowing less. On this $20,000 loan, putting down $2,000 more would lower the payment by about $39.60 and the interest by about $376. Sales tax, fees and insurance are not included.

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