A $5,000 personal loan at 12% interest for 5 years has a monthly payment of $111. Over the life of the loan, you will pay $1,673 in total interest, making the total cost $6,673.

Key Numbers

• •Monthly payment: $111
• •Total interest over 5 years: $1,673
• •Total cost of the loan: $6,673
• •A 3-year term costs $166/month but saves $695 in interest