A $20,000 personal loan at 8% interest for 5 years has a monthly payment of $406. Over the life of the loan, you will pay $4,332 in total interest, making the total cost $24,332.

Key Numbers

• •Monthly payment: $406
• •Total interest over 5 years: $4,332
• •Total cost of the loan: $24,332
• •A 3-year term costs $627/month but saves $1,769 in interest