Monthly payment on $10,000 by rate and term
| APR | 36 mo | 48 mo | 60 mo | 72 mo | 84 mo |
|---|---|---|---|---|---|
| 3% | $290.81 | $221.34 | $179.69 | $151.94 | $132.13 |
| 4% | $295.24 | $225.79 | $184.17 | $156.45 | $136.69 |
| 5% | $299.71 | $230.29 | $188.71 | $161.05 | $141.34 |
| 6% | $304.22 | $234.85 | $193.33 | $165.73 | $146.09 |
| 7% | $308.77 | $239.46 | $198.01 | $170.49 | $150.93 |
| 8% | $313.36 | $244.13 | $202.76 | $175.33 | $155.86 |
| 9% | $318.00 | $248.85 | $207.58 | $180.26 | $160.89 |
| 10% | $322.67 | $253.63 | $212.47 | $185.26 | $166.01 |
| 12% | $332.14 | $263.34 | $222.44 | $195.50 | $176.53 |
| 15% | $346.65 | $278.31 | $237.90 | $211.45 | $192.97 |
| 18% | $361.52 | $293.75 | $253.93 | $228.08 | $210.18 |
Your rate depends on your credit score, whether the car is new or used, and the lender. Credit unions and pre-approval usually beat dealer financing.
Longer loans cost more
At 7%:
| Term | Monthly payment | Total interest |
|---|---|---|
| 36 months (3 years) | $308.77 | $1,116 |
| 48 months (4 years) | $239.46 | $1,494 |
| 60 months (5 years) | $198.01 | $1,881 |
| 72 months (6 years) | $170.49 | $2,275 |
| 84 months (7 years) | $150.93 | $2,678 |
Stretching to 84 months lowers the payment by $47.09 a month versus 60, but adds $797 of interest, and you can owe more than the car is worth for years.
The formula
Payment = Loan × r ÷ (1 − (1 + r)^−n) r = APR ÷ 12, n = months
For $10,000 at 7% over 60 months: r = 0.005833 and the payment is $198.01. A $10,000 loan is the price plus taxes and fees, minus your down payment and trade-in.