When the car balance falls fastest

The balance falls fastest at the end of the loan, when interest is small and almost the whole payment is principal.

The bend in the chart

The balance chart starts at the amount financed and reaches zero at the end of the term. The drop per month is the principal portion, which grows as interest shrinks.

Early on, the line is flatter. That is the expensive part of a long loan if you sell the car then, because you have paid interest and still owe most of the principal.

What steepens it

A shorter term steepens the whole line because the payment is larger. A larger down payment starts lower. A lower rate moves more of each payment into principal from the first month.

Extra payments are not drawn. The chart is the contract payment only.

Resale is not on the chart

The chart does not show what the car is worth. Crossing below a value you hope for is something you compare by eye, with a value you bring yourself.

PMI-style dates do not apply to cars. There is no 80% rule on this form.

This explains how WiseCalculator treats the numbers you type. It is not a lender’s offer and it is not advice for your loan.