PriceProtect™
DriveShield™
GarageGuard™
Services
Insurance
Car Insurance
Compare Car Insurance with Jerry
Jerry’s Expert Advice
Car Insurance Estimates
Home & Renters Insurance
Renters Insurance
Repairs
Car Repair Estimates
Repair Estimates for Popular Services
Advice
Read Car Content
Browse Jerry Car Advice
Check Out Expert Car QnA
Learn About How We Create Content
Jerry Data & Research
How do I calculate a financing charge on a car loan?
I’m getting a loan and I was reading the fine print. It mentioned something about finance charges and showed an amount, but I’m not sure what these charges are. How can I calculate the financing charge on my car loan?
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Finance charges include interest, fees, and taxes rolled into your
car loan
. To determine your finance charges, multiply your monthly payments by the number of payments in your loan and subtract this amount from the principal of the loan (the total amount borrowed).For example, let’s say your monthly payment on a 48-month loan is $450. Following the formula above, you should multiply these two numbers together to get $21,600. If you borrowed $24,000 for the car (the principal), subtract $21,600 from $24,000 to get $2,400. So in this case, your finance charges are $2,400, which includes interest paid, taxes, and fees.
If you’re budgeting for your finance charges, do the same for your car insurance. Your lender likely requires full coverage car insurance on your financed vehicle, which can get pricey if you don’t shop around. Try using the number-one-rated car insurance app,
Jerry
. As a licensed broker, Jerry helps you find and compare quotes from over 50 top providers in minutes. When you find a better rate, Jerry can help you buy your new coverage and even cancel your old policy!View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
Join 4M+ members in lowering their car insurance
You Might Also Be Interested
Read Advice From Car Experts At Jerry
What Others Are Asking
Browse More Content
Insurance in Your State
Easiest way to compare and buy car insurance
No long forms
No spam or unwanted phone calls
Quotes from top insurance companies