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$60,000 Auto Loan Payment Over 7 Years

A 7-year car loan of $60,000 means 84 equal payments. Start with a rate of 8 percent and adjust it as you like.

That makes $935.17 a month at the start. The interest over the whole loan comes to $18,555.

$
%
years
$
Monthly payment
$935.17
Total interest
$18,555
Total paid
$78,555
Year by year
YearPrincipal paidInterest paidBalance left
1$6,663$4,559$53,337
2$7,216$4,006$46,121
3$7,815$3,407$38,306
4$8,463$2,759$29,843
5$9,166$2,056$20,677
6$9,927$1,295$10,751
7$10,751$472$0
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How the payment is worked out

Lenders use the standard loan formula. The yearly rate of 8 percent becomes a monthly rate of 0.6667 percent. The term of 7 years becomes 84 payments. The payment is the loan of $60,000 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 84 times.

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Worked example

Say you borrow $60,000 at 8 percent for 7 years. The payment is $935.17 a month. In month one, $400.00 pays interest and $535.17 reduces the balance.

Over the whole loan you pay $78,555. About 31 cents of each borrowed dollar goes to interest.

Questions about this calculator

What if the rate on a $60,000 car loan over 7 years were one point higher?

The payment would rise from $935.17 to $965.34, which is $30.17 more each month. One point lower would give $905.56.

Would paying $90 extra each month shorten a $60,000 car loan over 7 years?

Yes. On this $60,000 loan an extra $90 each month ends the loan 9 months sooner and saves $2,245 of interest.

Is 7 years the right length for a $60,000 car loan?

It depends on the monthly payment you can carry. At 8 percent this term costs $935.17 a month. A 5-year term would cost $1,216.58 a month and $12,995 in interest, compared with $18,555 over 7 years.

Does adding a year to a $60,000 car loan over 7 years change the cost much?

Yes. At 8 percent a 7-year term costs $18,555 in interest. A 8-year term would lower the payment to $848.20 but raise interest to $21,427.

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