Pick a loan amount + APR. See your monthly payment, total interest, and total cost for every standard term — 24, 36, 48, 60, 72, and 84 months — side-by-side. Find the cheapest term in 10 seconds.
7.0% is the 2026 US average for a prime borrower. Adjust to match your actual rate quote.
The 60-month term costs $594.04/mo with $5,642 in interest — saving $1,184 vs the longest term while keeping payments reasonable.
| Term | Monthly | Total interest | Total cost |
|---|
Saved by picking 60 months over 72 months on $30,000 @ 7.0% APR
Pick a quick-pick amount chip ($5K to $50K) or type your own loan amount in the input box. The default $30,000 is the average new-car loan in 2026. Set your APR — the 7.0% default is the 2026 average for a prime US borrower with a 720+ credit score; bump it up if you have lower credit, down if you have excellent credit or are using credit-union financing.
The 6-row table compares monthly payment, total interest, and total cost for 24, 36, 48, 60, 72, and 84 month terms at your inputs. The recommended row (highlighted in purple) is the term that balances the lowest total interest with a payment that's no more than 12% of the loan amount — usually 48 or 60 months for a typical buyer.
Below the table, the savings callout shows exactly how much interest you'd save by going 60 months instead of 72, and 36 months instead of 72. Use the Copy Scenario button to share your comparison, or click any tool in the Related Tools section below to model a specific term in more detail.
Monthly payment: The dollar amount you'll pay each month. Calculated with the standard amortization formula: P × (r(1+r)^n) / ((1+r)^n − 1) where P is the principal, r is the monthly interest rate (APR ÷ 12), and n is the number of months.
Total interest: How much extra you pay in interest over the loan's life. This is the TRUE cost of borrowing — a $30,000 / 72-month / 7% loan costs you $6,826 in interest, not $0.
Total cost: Principal + interest. This is the real number to compare across loans — a $30K / 24-month loan is "cheaper" in total cost ($32,236) than a $30K / 84-month loan ($38,034), even though the monthly payment is 3x higher.
★ Recommended row: The algorithm picks the longest term whose monthly payment is no more than 12% of the loan amount. For a $30K loan that's ~$3,600/mo, so 60 months usually wins. Adjust your inputs to see the recommendation change.
At a 7.0% APR (the 2026 US average for a prime borrower), a $30,000 car loan for 72 months costs $511.47 per month. Total paid over 72 months is $36,826, meaning $6,826 in interest on top of the $30,000 borrowed. Dropping to 60 months raises the payment to $594.04 but cuts total interest to $5,642 — saving $1,184 over the loan's life.
At a 7.0% APR, a $40,000 car loan for 72 months costs $681.96 per month. Total paid over 72 months is $49,101, meaning $9,101 in interest. If you can afford it, dropping to 60 months raises the payment to $792.06 but cuts total interest to $7,520 — saving $1,581 over the loan's life.
72-month terms are now the most common for new cars in 2026, but they're not always the best deal. On a $30,000 loan at 7% APR, the 72-month term costs $1,184 more in interest than the 60-month term. The car depreciates faster than you build equity, so you can be underwater (owe more than the car is worth) for 2-3 years. The rule of thumb: keep the term under 60 months if possible, and never finance a used car for 72+ months.
The 24-month term is always the cheapest in total interest paid — on a $30,000 loan at 7% APR you pay only $2,236 in interest. But the monthly payment is $1,343, which most buyers can't afford. The 'cheapest practical' term is usually 36 or 48 months: 36-month total interest is $3,347 at $926/mo, 48-month is $4,483 at $718/mo. The right term is the one whose monthly payment fits your budget AND minimizes total interest.
A 1% APR difference on a $30,000 / 72-month loan is about $1,000 in total interest. Specifically: 6% APR = $497/mo ($5,797 interest), 7% APR = $511/mo ($6,826 interest), 8% APR = $526/mo ($7,872 interest). Always shop 3+ lenders — credit unions typically beat dealer financing by 0.5-1.5% APR.
If you can afford the $82/month higher payment on a $30,000 loan at 7% APR, 60 months is better — you save $1,184 in interest and own the car free-and-clear 12 months sooner. Choose 72 months only if: (1) the 60-month payment strains your monthly budget, (2) you have other high-interest debt to pay off first, or (3) you expect a significant income jump in 12-18 months and plan to pay extra principal. The 84-month term is almost never a good deal — it costs $1,208 more than 72 months and 36 more months of carrying debt on a depreciating asset.
There's no hard cutoff — 60-month loans are standard at all credit tiers. With a 780+ score (super-prime) you might get 5.5% APR; 720-779 (prime) gets 6.5-7.5%; 660-719 (near-prime) gets 8-11%; 600-659 (subprime) gets 13-18%; below 600 gets 18%+ APR. The same $30K / 60-month loan costs $594/mo at 7% but $698/mo at 14% — an 18% payment increase for the same car. Improving your score by 100 points before shopping can save $3,000-$5,000 over the loan's life.
Scripts, dealer tactics, credit union vs. bank vs. captive lender, and the math behind getting the lowest APR. Pairs directly with the calculator above — a 1% APR drop on $30K / 60 months saves $1,000+.
See top auto loan books →The 20/4/10 rule, debt-to-income math, and how to budget for a car payment without sacrificing retirement savings. Essential reading before signing for 60+ months.
See top car budget books →Estimates only. Not tax, financial, or legal advice. Full disclaimer · Terms