Monthly payment on $60,000 by rate and term
| APR | 36 mo | 48 mo | 60 mo | 72 mo | 84 mo |
|---|---|---|---|---|---|
| 3% | $1,744.87 | $1,328.06 | $1,078.12 | $911.62 | $792.80 |
| 4% | $1,771.44 | $1,354.74 | $1,104.99 | $938.71 | $820.13 |
| 5% | $1,798.25 | $1,381.76 | $1,132.27 | $966.30 | $848.03 |
| 6% | $1,825.32 | $1,409.10 | $1,159.97 | $994.37 | $876.51 |
| 7% | $1,852.63 | $1,436.77 | $1,188.07 | $1,022.94 | $905.56 |
| 8% | $1,880.18 | $1,464.78 | $1,216.58 | $1,051.99 | $935.17 |
| 9% | $1,907.98 | $1,493.10 | $1,245.50 | $1,081.53 | $965.34 |
| 10% | $1,936.03 | $1,521.76 | $1,274.82 | $1,111.55 | $996.07 |
| 12% | $1,992.86 | $1,580.03 | $1,334.67 | $1,173.01 | $1,059.16 |
| 15% | $2,079.92 | $1,669.84 | $1,427.40 | $1,268.70 | $1,157.81 |
| 18% | $2,169.14 | $1,762.50 | $1,523.61 | $1,368.47 | $1,261.07 |
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) | $1,852.63 | $6,695 |
| 48 months (4 years) | $1,436.77 | $8,965 |
| 60 months (5 years) | $1,188.07 | $11,284 |
| 72 months (6 years) | $1,022.94 | $13,652 |
| 84 months (7 years) | $905.56 | $16,067 |
Stretching to 84 months lowers the payment by $282.51 a month versus 60, but adds $4,783 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 $60,000 at 7% over 60 months: r = 0.005833 and the payment is $1,188.07. A $60,000 loan is the price plus taxes and fees, minus your down payment and trade-in.