A $20,000 personal loan at 10% interest for 5 years has a monthly payment of $425. Over the life of the loan, you will pay $5,496 in total interest, making the total cost $25,496.

Key Numbers

• •Monthly payment: $425
• •Total interest over 5 years: $5,496
• •Total cost of the loan: $25,496
• •A 3-year term costs $645/month but saves $2,264 in interest