Monthly payment on $45,000 by rate and term
| APR | 36 mo | 48 mo | 60 mo | 72 mo | 84 mo |
|---|---|---|---|---|---|
| 3% | $1,308.65 | $996.04 | $808.59 | $683.72 | $594.60 |
| 4% | $1,328.58 | $1,016.06 | $828.74 | $704.03 | $615.10 |
| 5% | $1,348.69 | $1,036.32 | $849.21 | $724.72 | $636.03 |
| 6% | $1,368.99 | $1,056.83 | $869.98 | $745.78 | $657.38 |
| 7% | $1,389.47 | $1,077.58 | $891.05 | $767.21 | $679.17 |
| 8% | $1,410.14 | $1,098.58 | $912.44 | $789.00 | $701.38 |
| 9% | $1,430.99 | $1,119.83 | $934.13 | $811.15 | $724.01 |
| 10% | $1,452.02 | $1,141.32 | $956.12 | $833.66 | $747.05 |
| 12% | $1,494.64 | $1,185.02 | $1,001.00 | $879.76 | $794.37 |
| 15% | $1,559.94 | $1,252.38 | $1,070.55 | $951.53 | $868.35 |
| 18% | $1,626.86 | $1,321.87 | $1,142.70 | $1,026.35 | $945.80 |
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) | $1,389.47 | $5,021 |
| 48 months (4 years) | $1,077.58 | $6,724 |
| 60 months (5 years) | $891.05 | $8,463 |
| 72 months (6 years) | $767.21 | $10,239 |
| 84 months (7 years) | $679.17 | $12,050 |
Stretching to 84 months lowers the payment by $211.88 a month versus 60, but adds $3,587 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 $45,000 at 7% over 60 months: r = 0.005833 and the payment is $891.05. A $45,000 loan is the price plus taxes and fees, minus your down payment and trade-in.