Monthly payment on $25,000 by rate and term
| APR | 36 mo | 48 mo | 60 mo | 72 mo | 84 mo |
|---|---|---|---|---|---|
| 3% | $727.03 | $553.36 | $449.22 | $379.84 | $330.33 |
| 4% | $738.10 | $564.48 | $460.41 | $391.13 | $341.72 |
| 5% | $749.27 | $575.73 | $471.78 | $402.62 | $353.35 |
| 6% | $760.55 | $587.13 | $483.32 | $414.32 | $365.21 |
| 7% | $771.93 | $598.66 | $495.03 | $426.23 | $377.32 |
| 8% | $783.41 | $610.32 | $506.91 | $438.33 | $389.66 |
| 9% | $794.99 | $622.13 | $518.96 | $450.64 | $402.23 |
| 10% | $806.68 | $634.06 | $531.18 | $463.15 | $415.03 |
| 12% | $830.36 | $658.35 | $556.11 | $488.75 | $441.32 |
| 15% | $866.63 | $695.77 | $594.75 | $528.63 | $482.42 |
| 18% | $903.81 | $734.37 | $634.84 | $570.19 | $525.45 |
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) | $771.93 | $2,789 |
| 48 months (4 years) | $598.66 | $3,735 |
| 60 months (5 years) | $495.03 | $4,702 |
| 72 months (6 years) | $426.23 | $5,688 |
| 84 months (7 years) | $377.32 | $6,695 |
Stretching to 84 months lowers the payment by $117.71 a month versus 60, but adds $1,993 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 $25,000 at 7% over 60 months: r = 0.005833 and the payment is $495.03. A $25,000 loan is the price plus taxes and fees, minus your down payment and trade-in.