A $5,000 personal loan at 8% interest for 5 years has a monthly payment of $101. Over the life of the loan, you will pay $1,083 in total interest, making the total cost $6,083.

Key Numbers

• •Monthly payment: $101
• •Total interest over 5 years: $1,083
• •Total cost of the loan: $6,083
• •A 3-year term costs $157/month but saves $442 in interest