Same car, three terms
$30,000 financed at 7 % nominal annual. Only the term changes.
| Term | Monthly payment | Total interest | Still owed after 3 years |
|---|---|---|---|
| 60 months | $594.04 | $5,642.16 | $13,268 |
| 72 months | $511.47 | $6,825.85 | $16,565 |
| 84 months | $452.78 | $8,033.55 | $18,908 |
The payment: smaller, but by less each step
Going from 60 to 72 months lowers the payment by $82.57. Going from 72 to 84 lowers it by only $58.69. Each extra year buys a smaller cut: the balance is spread over more months, but it also accrues interest for longer.
The interest: bigger every step
Total interest climbs from $5,642 to $6,826 to $8,034. Stretching from 60 to 84 months costs $2,391 more on the same car at the same rate.
If the longer term also comes with a higher rate — say 9 % instead of 7 % — the 84-month loan would cost $10,544 in interest, for a payment of $482.67. Check the rate on each term separately; the calculator's «Find the rate» mode does it from the payment alone.
The balance: slower to come down
After three years of payments, a 60-month loan has $13,268 left; an 84-month loan still has $18,908. That matters if you might sell or trade the car early: cars lose value over time, and you need the sale price to cover what you still owe.
So which term?
There is no universally right answer, and this site won't pick one for you. The payment has to fit your monthly budget; the total interest is what the loan costs you in the end. Put your own numbers into the calculator to see both for every term at once.