How do I know how much interest I'm paying on a car loan?

I just signed my first car loan and while I know the interest rate, I'm not sure how much interest I'm paying per month or overall. Where can I find the amount of interest I’m paying on my car loan overall?

Answer
Knowing how much interest you’re paying on your car loan is important, and is luckily very easy to figure out. The best way to know how much you’re paying on interest for a car loan is to use an online auto loan calculator.
Simply enter your principal (purchase price), the interest rate, and the length of the loan. The calculator will then tell you how much interest you’re paying over the life of the loan.
However, you can’t simply divide total interest by the number of months in the loan because your interest is based on the principal each month. Therefore, the longer you pay, the more of your payment goes toward the principal than interest.
If you want to find out how much interest you’re paying each month to the penny, take a look at an amortization schedule. You can get this online or from the lender and see exactly how much is going toward the principal or interest each month. Note that the interest will also change if you make principal-only payments or you double up on payments each month.
In the future, you can save money to pay down your loan by shopping around for car insurance during each insurance renewal. To make the comparisons easy, use the Jerry app. We’ll get you personalized quotes in minutes so that you can get the best coverage at a great price—and if you find a plan you like, we’ll help you switch over!
Best of luck with your loan!
Eric Schad
Answered on Dec 13, 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.
thumb-up

Did this answer help you?

Ask us a question by email and we will respond within a few days.
thumb-up

Have a different question?

You can meet us at our office and discuss the details of your question.
Let Jerry’s experts help you find savings on your car insurance!
No long forms or spam · Get quotes from 40+ carriers
Find insurance savings (100% Free)
rating primary
4.7/5 Rating on App Store

Easiest way to compare and buy car insurance

√
No long forms
√
No spam or unwanted phone calls
√
Quotes from top insurance companies
Find insurance savings — it's 100% free