Most of us need to borrow money to buy a car or home. While maintaining a good credit score, shopping around, and paying off your loan as quickly as possible can minimize interest rates, you probably can’t avoid paying interest altogether. To see how much interest you’ll pay over the lifetime of a fixed-rate loan, use our total interest calculator.
|Annual Interest Rate (%):|
How Much I'll Pay in Loan Interest
If you borrow $20,000 at 5.00% for 5 years, your monthly payment will be $377.42. Your total interest will be $2,645.48 over the term of the loan.
Note: In most cases, your monthly loan payments won't change over time. With loan amortization, the proportion of “interest paid vs. principal repaid” changes each month. As the loan continues to amortize, the amount of monthly interest paid will decrease (while the amount of principal paid increases).
How to Use Our Loan Interest Calculator
Say that you're going to borrow $20,000 at a 5% interest rate. You expect to repay it over 5 years. Enter:
- "$20,000" as the Loan Amount
- "5" as the Term, and
- "5" as the Annual Interest Rate.
Use this total loan interest calculator to see how much interest you can expect to pay your lender over the lifetime of your loan.