A $25,000 car loan at 7% interest for 60 months (5 years) has a monthly payment of $495. Over the life of the loan, you will pay $4,702 in total interest, making the total cost $29,702.

Key Numbers

• •Monthly payment: $495
• •Total interest over 60 months: $4,702
• •Total cost of the loan: $29,702
• •A 72-month loan lowers the payment to $426 but adds $986 in interest