Monthly payment on $100,000 by rate and term
| APR | 36 mo | 48 mo | 60 mo | 72 mo | 84 mo |
|---|---|---|---|---|---|
| 3% | $2,908.12 | $2,213.43 | $1,796.87 | $1,519.37 | $1,321.33 |
| 4% | $2,952.40 | $2,257.91 | $1,841.65 | $1,564.52 | $1,366.88 |
| 5% | $2,997.09 | $2,302.93 | $1,887.12 | $1,610.49 | $1,413.39 |
| 6% | $3,042.19 | $2,348.50 | $1,933.28 | $1,657.29 | $1,460.86 |
| 7% | $3,087.71 | $2,394.62 | $1,980.12 | $1,704.90 | $1,509.27 |
| 8% | $3,133.64 | $2,441.29 | $2,027.64 | $1,753.32 | $1,558.62 |
| 9% | $3,179.97 | $2,488.50 | $2,075.84 | $1,802.55 | $1,608.91 |
| 10% | $3,226.72 | $2,536.26 | $2,124.70 | $1,852.58 | $1,660.12 |
| 12% | $3,321.43 | $2,633.38 | $2,224.44 | $1,955.02 | $1,765.27 |
| 15% | $3,466.53 | $2,783.07 | $2,378.99 | $2,114.50 | $1,929.68 |
| 18% | $3,615.24 | $2,937.50 | $2,539.34 | $2,280.78 | $2,101.78 |
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) | $3,087.71 | $11,158 |
| 48 months (4 years) | $2,394.62 | $14,942 |
| 60 months (5 years) | $1,980.12 | $18,807 |
| 72 months (6 years) | $1,704.90 | $22,753 |
| 84 months (7 years) | $1,509.27 | $26,779 |
Stretching to 84 months lowers the payment by $470.85 a month versus 60, but adds $7,971 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 $100,000 at 7% over 60 months: r = 0.005833 and the payment is $1,980.12. A $100,000 loan is the price plus taxes and fees, minus your down payment and trade-in.