CONTRACT CLARITY GUIDE

Amount financed vs. total of payments: what will you really repay?

Amount financed is the balance borrowed. Total of payments is the sum of scheduled payments. They answer different questions on a written car contract.

Review your quote free Read the worksheet guide

READ BOTH LINES

Borrowed balance and scheduled repayment are not the same.

Use the written contract, not a payment estimate alone. Figures below are fictional educational estimates, not a lender offer or financial advice.

Amount financed

The principal balance used to calculate the installment schedule.

Finance charge

The estimated borrowing cost shown separately on the contract.

Total of payments

The scheduled payment multiplied by the number of payments.

Check the inputs

Verify APR, term, price, fees, products, trade figures, and cash down.

FICTIONAL WORKED EXAMPLE

Illustrative $30,000 loan at 7.50% APR

A standard monthly installment estimate shows how scheduled payments add borrowing cost. Actual contract figures control.

ILLUSTRATIVE WORKSHEETNot a customer document

Amount financed: $30,000
Term: 60 months
Estimated payment: about $601.14/mo
Estimated total of payments: $36,068.31
Estimated finance charge: $6,068.31

Ask: Where are amount financed, finance charge, and total of payments shown on this written contract?

MAKE IT SPECIFIC

Check the written numbers before you sign.

Upload a PDF or image for free, review detected figures, and ask focused questions about the balance and repayment schedule.

Start the free scan