What does a $25,000 loan at 6.5% cost over five years?
A monthly payment is useful when budgeting, but it is not the entire price of borrowing. A longer loan often lowers the monthly payment while increasing the total interest you pay.
What we put into the calculator
This illustration finances exactly $25,000 at a fixed 6.5% APR for five years, with 60 monthly payments and no extra principal payments. We assume the loan amount already includes any financed fees, tax or add-ons.
The numbers behind the result
| Payment including extra | $489.15 |
|---|---|
| Payoff duration | 5 yr 0 mo |
| Total interest | $4,349 |
| Total payments | $29,349 |
| Amount borrowed | $25,000 |
What the result is really telling you
Compare both the monthly payment and the total interest. A salesperson can quote a lower payment simply by stretching the term. That does not mean the loan became cheaper. For a full ownership budget, add insurance, maintenance and vehicle depreciation.
Try changing one number
Change the term from five years to six, leaving the rate unchanged. Then go back to five years and try an extra $50 per month toward principal.
Open interactive calculator with this example ↗Where the estimate stops
Actual contracts may differ in payment timing, additional fees, simple-interest accrual, prepayment rules, and the treatment of taxes and registration. Always compare a written lender disclosure.
How this result was produced: The displayed values are evaluated by the same JavaScript formula as the linked MyFastCalcTools calculator. There are no hidden live quotes or market data in this example. The calculator explains its simplifying assumptions.