Monthly payment on $80,000 by rate and term
| APR | 36 mo | 48 mo | 60 mo | 72 mo | 84 mo |
|---|---|---|---|---|---|
| 3% | $2,326.50 | $1,770.75 | $1,437.50 | $1,215.49 | $1,057.06 |
| 4% | $2,361.92 | $1,806.32 | $1,473.32 | $1,251.61 | $1,093.50 |
| 5% | $2,397.67 | $1,842.34 | $1,509.70 | $1,288.39 | $1,130.71 |
| 6% | $2,433.75 | $1,878.80 | $1,546.62 | $1,325.83 | $1,168.68 |
| 7% | $2,470.17 | $1,915.70 | $1,584.10 | $1,363.92 | $1,207.41 |
| 8% | $2,506.91 | $1,953.03 | $1,622.11 | $1,402.66 | $1,246.90 |
| 9% | $2,543.98 | $1,990.80 | $1,660.67 | $1,442.04 | $1,287.13 |
| 10% | $2,581.37 | $2,029.01 | $1,699.76 | $1,482.07 | $1,328.09 |
| 12% | $2,657.14 | $2,106.71 | $1,779.56 | $1,564.02 | $1,412.22 |
| 15% | $2,773.23 | $2,226.46 | $1,903.19 | $1,691.60 | $1,543.74 |
| 18% | $2,892.19 | $2,350.00 | $2,031.47 | $1,824.62 | $1,681.43 |
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) | $2,470.17 | $8,926 |
| 48 months (4 years) | $1,915.70 | $11,954 |
| 60 months (5 years) | $1,584.10 | $15,046 |
| 72 months (6 years) | $1,363.92 | $18,202 |
| 84 months (7 years) | $1,207.41 | $21,423 |
Stretching to 84 months lowers the payment by $376.68 a month versus 60, but adds $6,377 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 $80,000 at 7% over 60 months: r = 0.005833 and the payment is $1,584.10. A $80,000 loan is the price plus taxes and fees, minus your down payment and trade-in.