A $5,000 personal loan at 10% interest for 5 years has a monthly payment of $106. Over the life of the loan, you will pay $1,374 in total interest, making the total cost $6,374.

Key Numbers

• •Monthly payment: $106
• •Total interest over 5 years: $1,374
• •Total cost of the loan: $6,374
• •A 3-year term costs $161/month but saves $566 in interest