Auto loan payment
What is the monthly payment on a $20,000 car loan?
A $20,000 auto loan at a 7% APR over 5 years has a monthly payment of about $396. Over the full term you'd repay roughly $23,761, including about $3,761 in interest. $20,000 is common for a late-model used car or an entry-level new vehicle. The table below shows the payment for every common rate and term.
$20,000 car loan: monthly payment by rate & term
Estimated principal & interest only, fixed rate. Pick the row for your APR and the column for your term.
| APR \ Term | 3 yr | 4 yr | 5 yr | 6 yr | 7 yr |
|---|---|---|---|---|---|
| 4% | $590 | $452 | $368 | $313 | $273 |
| 5% | $599 | $461 | $377 | $322 | $283 |
| 6% | $608 | $470 | $387 | $331 | $292 |
| 7% | $618 | $479 | $396 | $341 | $302 |
| 8% | $627 | $488 | $406 | $351 | $312 |
| 9% | $636 | $498 | $415 | $361 | $322 |
| 10% | $645 | $507 | $425 | $371 | $332 |
| 12% | $664 | $527 | $445 | $391 | $353 |
How the payment is calculated
A fixed auto loan amortizes: each month interest is charged on the balance and the rest of the payment reduces principal. The payment is principal × monthly rate ÷ (1 − (1 + monthly rate)−months). For $20,000 at 7% over 5 years that's about $396 a month.
Want to model your own rate, term, down payment, or trade-in? Use the auto loan calculator for the live payment and total interest.
What changes the real cost
- Term length: 6–7 year loans lower the payment but cost much more interest and risk going "underwater".
- Rate: your credit score drives the APR — a few points changes total cost significantly.
- Down payment & trade-in: reduce the amount financed and the payment.
- Tax & fees: often financed too, raising the real loan above the sticker.
Frequently asked questions
What is the monthly payment on a $20,000 car loan?
At a 7% APR over 5 years, a $20,000 auto loan costs about $396 per month. The exact payment depends on your rate and term — see the table above for the full range.
How much interest will I pay on a $20,000 car loan?
At 7% over 5 years you'd repay about $23,761 in total, of which roughly $3,761 is interest. A shorter term raises the monthly payment but cuts total interest sharply.
Does this include tax, title, and fees?
No. These are principal-and-interest estimates on the amount financed only. Sales tax, title, registration, and dealer fees are often rolled into the loan and would increase the amount and the payment.