Monthly payment on $15,000 by rate and term
| APR | 36 mo | 48 mo | 60 mo | 72 mo | 84 mo |
|---|---|---|---|---|---|
| 3% | $436.22 | $332.01 | $269.53 | $227.91 | $198.20 |
| 4% | $442.86 | $338.69 | $276.25 | $234.68 | $205.03 |
| 5% | $449.56 | $345.44 | $283.07 | $241.57 | $212.01 |
| 6% | $456.33 | $352.28 | $289.99 | $248.59 | $219.13 |
| 7% | $463.16 | $359.19 | $297.02 | $255.74 | $226.39 |
| 8% | $470.05 | $366.19 | $304.15 | $263.00 | $233.79 |
| 9% | $477.00 | $373.28 | $311.38 | $270.38 | $241.34 |
| 10% | $484.01 | $380.44 | $318.71 | $277.89 | $249.02 |
| 12% | $498.21 | $395.01 | $333.67 | $293.25 | $264.79 |
| 15% | $519.98 | $417.46 | $356.85 | $317.18 | $289.45 |
| 18% | $542.29 | $440.62 | $380.90 | $342.12 | $315.27 |
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) | $463.16 | $1,674 |
| 48 months (4 years) | $359.19 | $2,241 |
| 60 months (5 years) | $297.02 | $2,821 |
| 72 months (6 years) | $255.74 | $3,413 |
| 84 months (7 years) | $226.39 | $4,017 |
Stretching to 84 months lowers the payment by $70.63 a month versus 60, but adds $1,196 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 $15,000 at 7% over 60 months: r = 0.005833 and the payment is $297.02. A $15,000 loan is the price plus taxes and fees, minus your down payment and trade-in.