Loan Payment Calculator
Find your monthly payment and true total cost for any loan amount, rate, and term.
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Monthly Payment
$405.53
Total Interest
$4,332
Total Cost
$24,332
Interest Rate
8%
# of Payments
60
Understanding Loan Payments
Each monthly payment is split between principal (reducing your balance) and interest. Early payments are heavily weighted toward interest; as your balance decreases, more goes to principal. This schedule is called amortization.
The interest rate has a large impact on total cost. A $20,000 loan at 5% over 5 years costs about $2,645 in interest. At 12%, the same loan costs $6,665 — more than 2.5× as much.
Making extra payments toward principal each month shortens your loan term and reduces total interest paid, even without refinancing.