A $20,000 car loan at 7% interest for 60 months (5 years) has a monthly payment of $396. Over the life of the loan, you will pay $3,761 in total interest, making the total cost $23,761.

Key Numbers

• •Monthly payment: $396
• •Total interest over 60 months: $3,761
• •Total cost of the loan: $23,761
• •A 72-month loan lowers the payment to $341 but adds $789 in interest