Monthly payment on $30,000 by rate and term
| APR | 36 mo | 48 mo | 60 mo | 72 mo | 84 mo |
|---|---|---|---|---|---|
| 3% | $872.44 | $664.03 | $539.06 | $455.81 | $396.40 |
| 4% | $885.72 | $677.37 | $552.50 | $469.36 | $410.06 |
| 5% | $899.13 | $690.88 | $566.14 | $483.15 | $424.02 |
| 6% | $912.66 | $704.55 | $579.98 | $497.19 | $438.26 |
| 7% | $926.31 | $718.39 | $594.04 | $511.47 | $452.78 |
| 8% | $940.09 | $732.39 | $608.29 | $526.00 | $467.59 |
| 9% | $953.99 | $746.55 | $622.75 | $540.77 | $482.67 |
| 10% | $968.02 | $760.88 | $637.41 | $555.78 | $498.04 |
| 12% | $996.43 | $790.02 | $667.33 | $586.51 | $529.58 |
| 15% | $1,039.96 | $834.92 | $713.70 | $634.35 | $578.90 |
| 18% | $1,084.57 | $881.25 | $761.80 | $684.23 | $630.54 |
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) | $926.31 | $3,347 |
| 48 months (4 years) | $718.39 | $4,483 |
| 60 months (5 years) | $594.04 | $5,642 |
| 72 months (6 years) | $511.47 | $6,826 |
| 84 months (7 years) | $452.78 | $8,034 |
Stretching to 84 months lowers the payment by $141.26 a month versus 60, but adds $2,391 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 $30,000 at 7% over 60 months: r = 0.005833 and the payment is $594.04. A $30,000 loan is the price plus taxes and fees, minus your down payment and trade-in.