PriceProtect™
DriveShield™
GarageGuard™
Services
Insurance
Car Insurance
Compare Car Insurance with Jerry
Jerry’s Expert Advice
Car Insurance Estimates
Home & Renters Insurance
Renters Insurance
Loans
Car Loan
Compare Car Loans with Jerry
Jerry's Expert Advice
Car Loan Guides
Repairs
Car Repair Estimates
Repair Estimates for Popular Services
Advice
Read Car Content
Browse Jerry Car Advice
Check Out Expert Car QnA
Learn About How We Create Content
Jerry Data & Research
How is car loan interest calculated?
I want to understand how much I'm paying for my car loan, and I need to figure out the interest. How's it calculated?
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
It’s really smart to get a full scope of what you’re paying for car insurance.
The interest on car loans is generally calculated using the simple interest method—your interest is calculated solely on the loan balance or principal that your car loan is due. Over time, the amount of interest paid goes down while the amount of your payment that goes toward the principal increases. This is known as front-end amortization.
To understand this more, get an amortization schedule from your lender. This will show how much interest you’re paying, breaking down the interest to a month-by-month basis. If you want to lower your interest, you can always make a larger down payment or shorten the length of your loan.
If you get a car loan, you’ll need full coverage insurance. Use the
Jerry
app to compare rates from up to 50car insurance companies. Sign up in minutes, Jerry will take care of all the paperwork for you! View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
Join 4M+ members in lowering their car insurance
You Might Also Be Interested
Read Advice From Car Experts At Jerry
What Others Are Asking
Browse More Content
Insurance in Your State
Easiest way to compare and buy car insurance
No long forms
No spam or unwanted phone calls
Quotes from top insurance companies
