A $20,000 car loan at 6% interest for 60 months (5 years) has a monthly payment of $387. Over the life of the loan, you will pay $3,199 in total interest, making the total cost $23,199.

Key Numbers

• •Monthly payment: $387
• •Total interest over 60 months: $3,199
• •Total cost of the loan: $23,199
• •A 72-month loan lowers the payment to $331 but adds $666 in interest