Looking for a six-year (72-month) auto loan? This calculator displays your monthly payment and a full schedule of your upcoming principal and interest payments.
What will my monthly car payment be if I take out a 72-month (six year) loan?
In the early 2000s, the most common auto loan term in the US was for five years (or 60 months). However, 72-month auto loans have recently become a more popular option.
Before buying a new car and getting a loan, check out our 72-month car loan calculator. This tool will tell you exactly what your monthly payment will be.
How Does the 72-Month Auto Loan Calculator Work?
It will calculate your monthly payment and will display a full repayment schedule based on your loan amount, interest rate, and the total time period of your loan (also called the "Loan Term").
Example of a 72 Month Car Loan
For example, you plan to borrow $35,000 for a term of 72 months at an annual interest rate of 4.0%. You will enter:
"$35,000" as the Loan Amount
"72 months" as the Term, and
"4.0%" as the Interest Rate
Will My 72 Month Auto Loan Payments Stay the Same?
If you take out a $35,000 new auto loan for a 72-month term at 4.0% interest, then your monthly payment will be $547.58.
Although your monthly payments won't change during the term of your loan, the amount applied to principal versus interest will vary based on the amortization schedule. You can find your amortization schedule for your 72 month auto loan after you run your calculation.
Pros and Cons of a 72 Month Car Loan
If you are in the market for a car the 72 month car loan is a popular choice, but you need to be sure it’s right for you. Below you can compare the advantages and disadvantages of a 72 month car loan.
The longer the loan term, the smaller your monthly payments will be.
Lower monthly payments mean more financial flexibility.
Longer-term loans typically have higher interest rates than shorter-term car loans.
You can end up owing more on the car than it is worth due to depreciation.
On a new car, the warranty will likely expire long before the loan is paid off adding car maintenance to your transportation bills.
72 Month Auto Loan vs. 60 Month Auto Loan
Auto loans that last longer than 5 years (60 months) are considered long term auto loans. There are some important considerations when comparing a 72 month auto loan and a 60 month auto loan.
The first concern is your monthly auto bills. While the 72 month auto loan may give you a lower monthly payment, most warranties expire at the 3 to 5 year mark. This means you need to plan to add expensive repairs onto your monthly auto bills the last few years of paying off the car.
The second concern is how much interest you will pay. Generally, the shorter the auto loan term, the lower the interest rate you’re offered. A 60 month auto loan will typically offer lower interest rates than a 72 month auto loan. That means more money in your pocket instead of the lenders.
The last major concern is depreciation. New cars rapidly depreciate in value as soon as you drive them off the lot. A 72 month auto loan vs. a 60 month auto loan could mean the difference between getting underwater with your car loan or not. The term “underwater” means you owe more for something that it is worth and it can be a byproduct of a 72 month auto loan.
You can easily compare a 72 month auto loan to a 60 month auto loan by using our 60 month auto loan calculator.
72 Month Auto Loan vs. 84 Month Auto Loan
Both the 72 month auto loan and the 84 month auto loan are long term loans. This means they will likely have higher interest rates than a 60 month auto loan. You should be wary of this and the reality that the car will depreciate in value and the car warranty will expire. This leaves you vulnerable to owing more than your car is worth and shelling out for major car repairs.
It’s important to ask yourself if you can afford the car and the expected expenses with long term financing. Alternatively you can avoid a 72 month or 84 month auto loan by putting a larger down payment on the car, choosing a cheaper car, or opting for a used car.