A $20,000 personal loan at 12% interest for 5 years has a monthly payment of $445. Over the life of the loan, you will pay $6,693 in total interest, making the total cost $26,693.

Key Numbers

• •Monthly payment: $445
• •Total interest over 5 years: $6,693
• •Total cost of the loan: $26,693
• •A 3-year term costs $664/month but saves $2,779 in interest