Congrats on your new car! To find out how much interest you will have to pay over the life of your car loan, you should use an online loan interest calculator. You will need to provide the following information:
The online calculator will provide you with an accurate calculation based on the information given. But if you would like to calculate the total interest you will pay over the life of your loan yourself, use the following formula:
Principal loan amount * Interest rate * Number of years in the loan term = Total interest paid
So if we’re using the information you’ve given, you would need the term of your loan in years to complete the calculation. Say, for example, your loan term is six years, your calculation would look like this:
25,000 * 0.058 * 6 = 8,700
$8,700 would be the total amount of interest you will pay on your loan.
Now that you understand how to calculate your total interest, you might be feeling a little overwhelmed by the numbers. Luckily, you can save some money on your car insurance
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