Monthly payment on $35,000 by rate and term
| APR | 36 mo | 48 mo | 60 mo | 72 mo | 84 mo |
|---|---|---|---|---|---|
| 3% | $1,017.84 | $774.70 | $628.90 | $531.78 | $462.47 |
| 4% | $1,033.34 | $790.27 | $644.58 | $547.58 | $478.41 |
| 5% | $1,048.98 | $806.03 | $660.49 | $563.67 | $494.69 |
| 6% | $1,064.77 | $821.98 | $676.65 | $580.05 | $511.30 |
| 7% | $1,080.70 | $838.12 | $693.04 | $596.72 | $528.24 |
| 8% | $1,096.77 | $854.45 | $709.67 | $613.66 | $545.52 |
| 9% | $1,112.99 | $870.98 | $726.54 | $630.89 | $563.12 |
| 10% | $1,129.35 | $887.69 | $743.65 | $648.40 | $581.04 |
| 12% | $1,162.50 | $921.68 | $778.56 | $684.26 | $617.85 |
| 15% | $1,213.29 | $974.08 | $832.65 | $740.08 | $675.39 |
| 18% | $1,265.33 | $1,028.12 | $888.77 | $798.27 | $735.62 |
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) | $1,080.70 | $3,905 |
| 48 months (4 years) | $838.12 | $5,230 |
| 60 months (5 years) | $693.04 | $6,583 |
| 72 months (6 years) | $596.72 | $7,963 |
| 84 months (7 years) | $528.24 | $9,372 |
Stretching to 84 months lowers the payment by $164.80 a month versus 60, but adds $2,790 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 $35,000 at 7% over 60 months: r = 0.005833 and the payment is $693.04. A $35,000 loan is the price plus taxes and fees, minus your down payment and trade-in.