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I have a car loan. This is a simple interest loan. When I enter in the details into a loan amortization calculator online, I get a different payment amount than what I have been paying. And, the calculated amount going to principle is considerably more than what the statement from the bank reads. In fact, if I play around with the calculator, and increase the APR by about 0.77 percent, the amortization table seems to coincide with what I have been paying so far. I have tried this on multiple loan calculator web apps, and I have triple-checked the interest rate. Is it possible my bank has been charging an interest rate higher than what they were supposed to?

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    What did the bank say when you asked them? Jul 31, 2022 at 15:51
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    did you compare any of this with the loan paperwork? Jul 31, 2022 at 17:02
  • Where on earth did you get a simple interest loan? Car loans are generally compound interest loans. Jul 31, 2022 at 22:07
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    @DilipSarwate the question doesn't have a country code, but in the US most (maybe all?) car loans are simple interest loans.
    – TTT
    Aug 1, 2022 at 2:31
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    Note that some loans calculate interest daily, so a 31 day month will have more interest than a 30 (or 28) day month. Also, statement lengths can vary if the date doesn't always fall on the same day of the month. But the average interest per month should be approximately the yearly rate divided by 12, based on the principal at the start of each month. If the numbers are too high every month, like you suggest, you should call your bank and ask to clarify. You could post some numbers here too if you want us to confirm.
    – TTT
    Aug 1, 2022 at 2:47

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Is it possible my bank has been charging an interest rate higher than what they were supposed to?

It's certainly possible, people make mistakes all the time. You should check with the lender to see if any numbers they use differ from what your loan paperwork states. It could also be that the calculator you are using is incorrect or that your loan interest is not calculated the way you understood it to be.

All anyone else can do is speculate with the information provided, so it is best to contact lender first.

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