A $40,000 car loan at 7% interest for 60 months (5 years) has a monthly payment of $792. Over the life of the loan, you will pay $7,523 in total interest, making the total cost $47,523.

Key Numbers

• •Monthly payment: $792
• •Total interest over 60 months: $7,523
• •Total cost of the loan: $47,523
• •A 72-month loan lowers the payment to $682 but adds $1,578 in interest