What’s Your
Loan Really Costing You?
Total cost = what you borrow + all the interest. The monthly payment is the smallest number in the deal.
The dealer quotes you a monthly payment. The bank quotes you a rate. Nobody quotes you the total — the number that actually matters. Run it and see what the loan really costs.
Run your numbers
$1,580.17Know your real monthly payment, total interest, and how extra payments shrink the loan.
Loans, the Carr Report way
Payment blindness is how loans get sold — judge a loan by its total price, not its monthly payment. Multiply the monthly by 12, then by the years, and the real number shows up.
Total price
The number that actually matters.
- The number that actually matters — loan plus all the interest
- Multiply the monthly by 12, then by the years
- A ‘low payment’ can hide a mountain of interest
Monthly payment
The number the dealer leads with.
- The number the dealer leads with — small on purpose
- Stretches the loan out and piles on interest
- Fits the budget and still bleeds you dry
“Judge by total price,
— Damon Carr, The Carr Report
not monthly payment.”
The moves that shrink a loan
Five moves. No tricks — just the total, the term, and the extra. Your one next move above comes straight from this list.
Know the total before you sign
The monthly payment is a sales pitch. The total is the truth. Never sign a loan without seeing the total.
Shorter beats smaller
A shorter term means a bigger monthly payment and far less interest. If the payment fits, take the shorter loan.
Aim extra at the principal
Every extra dollar aimed at the principal pulls the payoff date closer and cuts the interest the bank collects.
Never borrow the max
Just because they’ll lend it doesn’t mean you should take it. Borrow the least that gets the job done.
Refinance when the math pays
If rates drop enough to beat the closing costs, refinance. Run the numbers — don’t guess.