Why does the interest fluctuate on a fixed-rate car loan?

I have a car loan with a fixed rate, but the amount of interest charged varies month to month. Why does the interest amount fluctuate like this?

Answer provided by
Johnny Puckett
Answered on Mar 18, 2021
Johnny Puckett is a freelance writer and automotive expert. He has contributed content to a number of some of the largest online publications, aftermarket automotive manufacturers’ sites, and automotive informational sites. His experience in the automotive and information fields informs his writing at Jerry. His automotive interests bleed into his free time, where he enjoys modifying his favorite cars and woodworking.
Interest is applied on the total principal owed on the loan. This amount changes as the loan goes on, so what you should see is a larger amount of your monthly payment going towards the principal and a smaller amount going towards the interest. Furthermore, some months have more days than others and that can affect the amount of interest paid, too.

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