Monthly payment on $50,000 by rate and term
| APR | 36 mo | 48 mo | 60 mo | 72 mo | 84 mo |
|---|---|---|---|---|---|
| 3% | $1,454.06 | $1,106.72 | $898.43 | $759.68 | $660.67 |
| 4% | $1,476.20 | $1,128.95 | $920.83 | $782.26 | $683.44 |
| 5% | $1,498.54 | $1,151.46 | $943.56 | $805.25 | $706.70 |
| 6% | $1,521.10 | $1,174.25 | $966.64 | $828.64 | $730.43 |
| 7% | $1,543.85 | $1,197.31 | $990.06 | $852.45 | $754.63 |
| 8% | $1,566.82 | $1,220.65 | $1,013.82 | $876.66 | $779.31 |
| 9% | $1,589.99 | $1,244.25 | $1,037.92 | $901.28 | $804.45 |
| 10% | $1,613.36 | $1,268.13 | $1,062.35 | $926.29 | $830.06 |
| 12% | $1,660.72 | $1,316.69 | $1,112.22 | $977.51 | $882.64 |
| 15% | $1,733.27 | $1,391.54 | $1,189.50 | $1,057.25 | $964.84 |
| 18% | $1,807.62 | $1,468.75 | $1,269.67 | $1,140.39 | $1,050.89 |
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) | $1,543.85 | $5,579 |
| 48 months (4 years) | $1,197.31 | $7,471 |
| 60 months (5 years) | $990.06 | $9,404 |
| 72 months (6 years) | $852.45 | $11,376 |
| 84 months (7 years) | $754.63 | $13,389 |
Stretching to 84 months lowers the payment by $235.43 a month versus 60, but adds $3,986 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 $50,000 at 7% over 60 months: r = 0.005833 and the payment is $990.06. A $50,000 loan is the price plus taxes and fees, minus your down payment and trade-in.