Example answer: At a hypothetical $25,000 financed and 6.5% annual interest, the 60-month payment is approximately $489.15; stretching it to 72 months lowers the required payment to about $420.25 but increases total interest by about $908.65. These figures assume identical APRs and no additional fees.

Is a 72-month car loan worth the smaller payment?

The monthly payment is only one part of an auto financing decision. Stretching a fixed-rate loan from five years to six reduces what you must pay each month, but also typically increases total interest. If you plan to trade in early, the slower payoff may leave more unpaid principal when you sell the vehicle.

The live comparison above holds the amount financed and APR constant; that isolates the effect of the term. In practice a lender can quote a different APR for each term, so ask for both offers and compare the actual disclosures.

How the two payments are calculated

Each payment uses the standard fixed-rate amortization formula with a monthly rate equal to the annual interest rate divided by 12. Total interest is calculated as the monthly payment multiplied by the number of payments, minus the amount borrowed. Rounding is applied for display; a lender may use daily interest, payment rounding, fees, or a different schedule.

Don't confuse the loan amount with the vehicle price

A $25,000 vehicle is not necessarily a $25,000 loan. Down payment, trade-in equity, sales tax, registration fees, dealer charges and add-on products can all change the financed amount. Enter the actual amount financed in this comparison rather than the advertised price.

Questions to ask before choosing

Can the 60-month payment fit comfortably alongside insurance, fuel, maintenance and emergency savings? Does the 72-month option charge a higher APR? Are there prepayment penalties or extra fees? Could you make the shorter payment most months without risking missed bills? The cheapest loan is not automatically the best fit if it creates an unstable monthly budget.

The full car payment calculator can account for down payment, taxes, fees and trade-in value. For a different look at payments after an existing loan, use car refinancing.

Assumptions and limits

Illustrative, fixed-rate amortizing loans only. Excludes fees, down payments, tax, insurance, penalties, changing rates and borrower-specific lender terms. The sample 6.5% APR is an assumption, not a current offer.

Independent references

Continue calculating

First published and reviewed: November 3, 2026. Calculations are self-contained and use the hypothetical values shown above.