Auto loan terms calculator
This auto loan terms calculator compares two loan lengths on the same car, so you can see exactly what a longer term costs in extra interest.
The common auto loan lengths
Car loans commonly run 36, 48, 60, 72 or 84 months, and 60 and 72 are the most common. Longer terms often carry slightly higher rates, so the preset charges a half-point more for the longer loan. The longer the loan, the lower the payment, the higher the total interest and the longer you can owe more than the car is worth.
Which term to choose
A practical test: choose the shortest term whose payment fits your budget with room to spare. If you only qualify for a payment by stretching to 84 months, the car may be more than you should buy. Many lenders also restrict terms on older used cars, so the longest options are often not available for them.
The two loans compared
Loan A ($30,000 at 6.8% for 4 years) costs $715.61 a month and $4,349 in interest. Loan B ($30,000 at 7.3% for 6 years) costs $515.80 a month and $7,138 in interest. Loan A costs less in total, by $2,789, while its monthly payment is higher by $199.81.
| Loan A | Loan B | |
|---|---|---|
| Amount | $30,000 | $30,000 |
| Rate | 6.8% | 7.3% |
| Term | 4 years | 6 years |
| Monthly payment | $715.61 | $515.80 |
| Total interest | $4,349 | $7,138 |
| Total paid | $34,349 | $37,138 |
Frequently asked questions
What is the most common car loan length?
Sixty to seventy-two months are the most common for new cars, with 84 months offered by some lenders.
Is a 72-month car loan too long?
It is not unusual, but it costs more in interest and raises negative-equity risk. A 48 to 60 month loan is safer if the payment fits.
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Estimates from standard loan formulas, not a loan offer or financial advice. Example rates are assumptions: use your own quote.