How do I calculate my interest on a car loan?

I'm a curious person who wants to know how much I’m paying in interest on my loans. How do I figure out the amount on a car loan?

Answer
Knowing how much interest you pay on your car loan can light a fire under you to pay the loan off early—especially when you realize it could be thousands of dollars over the course of the loan.
While you could do all of the math and algebra to figure out how much you’re paying each month, don’t waste your time needlessly. Instead, use one of these two options:
  • Use an online loan calculator
  • Ask your lender for an amortization schedule, which breaks down how much interest you pay on a month-by-month basis
Since you’re getting a car loan, you should also consider what type of insurance coverage you need. Lenders will require full coverage car insurance, but you can find ways to save on maximum coverage. Use the Jerry app to compare quotes from dozens of insurers so you get the best rates for your new ride.
Eric Schad
Answered on Nov 03, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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