Monthly payment on $70,000 by rate and term
| APR | 36 mo | 48 mo | 60 mo | 72 mo | 84 mo |
|---|---|---|---|---|---|
| 3% | $2,035.68 | $1,549.40 | $1,257.81 | $1,063.56 | $924.93 |
| 4% | $2,066.68 | $1,580.53 | $1,289.16 | $1,095.16 | $956.82 |
| 5% | $2,097.96 | $1,612.05 | $1,320.99 | $1,127.35 | $989.37 |
| 6% | $2,129.54 | $1,643.95 | $1,353.30 | $1,160.10 | $1,022.60 |
| 7% | $2,161.40 | $1,676.24 | $1,386.08 | $1,193.43 | $1,056.49 |
| 8% | $2,193.55 | $1,708.90 | $1,419.35 | $1,227.33 | $1,091.04 |
| 9% | $2,225.98 | $1,741.95 | $1,453.08 | $1,261.79 | $1,126.24 |
| 10% | $2,258.70 | $1,775.38 | $1,487.29 | $1,296.81 | $1,162.08 |
| 12% | $2,325.00 | $1,843.37 | $1,557.11 | $1,368.51 | $1,235.69 |
| 15% | $2,426.57 | $1,948.15 | $1,665.30 | $1,480.15 | $1,350.77 |
| 18% | $2,530.67 | $2,056.25 | $1,777.54 | $1,596.55 | $1,471.25 |
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) | $2,161.40 | $7,810 |
| 48 months (4 years) | $1,676.24 | $10,459 |
| 60 months (5 years) | $1,386.08 | $13,165 |
| 72 months (6 years) | $1,193.43 | $15,927 |
| 84 months (7 years) | $1,056.49 | $18,745 |
Stretching to 84 months lowers the payment by $329.60 a month versus 60, but adds $5,580 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 $70,000 at 7% over 60 months: r = 0.005833 and the payment is $1,386.08. A $70,000 loan is the price plus taxes and fees, minus your down payment and trade-in.