A $10,000 personal loan at 8% interest for 5 years has a monthly payment of $203. Over the life of the loan, you will pay $2,166 in total interest, making the total cost $12,166.

Key Numbers

• •Monthly payment: $203
• •Total interest over 5 years: $2,166
• •Total cost of the loan: $12,166
• •A 3-year term costs $313/month but saves $885 in interest