Work out the monthly payment, total interest and total cost of a fixed-rate loan.
It uses the standard fixed-payment formula. With monthly rate r (annual rate divided by 12 and by 100) and n monthly payments, the payment is: loan amount × r ÷ (1 − (1 + r)−n). If the rate is 0%, the loan amount is simply divided by n.
A loan of 20,000 at 6.5% a year for 5 years has a monthly payment of about 391. Over 60 payments you pay roughly 23,480 in total, of which about 3,480 is interest.
Does this include fees or insurance? No. Add any fees to the loan amount if they are financed.
Will my bank show the same number? It may differ slightly because of rounding, payment dates and fees.
Results are estimates and not financial advice. Found a mistake? Report an error.