5 year loan calculator
This 5-year loan calculator shows the monthly payment and total interest on a loan paid off over 5 years.
Amortization schedule
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | $3,316.64 | $1,665.40 | $16,683.36 |
| 2 | $3,627.75 | $1,354.29 | $13,055.61 |
| 3 | $3,968.07 | $1,013.97 | $9,087.54 |
| 4 | $4,340.30 | $641.74 | $4,747.24 |
| 5 | $4,747.24 | $234.59 | $0.00 |
A five- to six-year loan
Terms of 60 to 72 months are the longest most unsecured personal loans offer. The payment is low, but total interest is high, so use this length only if cash flow requires it and look for a loan with no prepayment penalty so you can pay it off early.
Facts for 5 years
Borrowing $20,000 at 9% over 5 years costs $415.17 a month and $4,910 in interest, 25% of the amount borrowed.
$20,000 at 9% by loan length
Borrowing $20,000 at 9% over 5 years costs $415.17 a month and $4,910 in interest, $24,910 in total. Shorter terms raise the payment but cut the interest, and longer terms do the reverse. The table shows the trade-off across common terms.
| Term | Monthly payment | Total interest | Total paid |
|---|---|---|---|
| 12-month | $1,749.03 | $988 | $20,988 |
| 2-year | $913.69 | $1,929 | $21,929 |
| 3-year | $635.99 | $2,896 | $22,896 |
| 4-year | $497.70 | $3,890 | $23,890 |
| 5-year | $415.17 | $4,910 | $24,910 |
| 7-year | $321.78 | $7,030 | $27,030 |
| 10-year | $253.35 | $10,402 | $30,402 |
How your rate changes the cost
Personal loan rates vary widely with credit score, from the mid single digits for strong borrowers to 30% or more for weak credit. On $20,000 over 5 years, moving from 9% to 12% adds $1,783 in interest.
| APR | Monthly payment | Total interest |
|---|---|---|
| 6% | $386.66 | $3,199 |
| 7.5% | $400.76 | $4,046 |
| 9% | $415.17 | $4,910 |
| 10.5% | $429.88 | $5,793 |
| 12% | $444.89 | $6,693 |
Payment per $1,000 over 5 years
Multiply the number of thousands you borrow by the figure below to estimate the payment over 5 years.
| APR | Payment per $1,000 |
|---|---|
| 4% | $18.42 |
| 6% | $19.33 |
| 8% | $20.28 |
| 10% | $21.25 |
| 14% | $23.27 |
| 20% | $26.49 |
How much can you borrow for a given payment?
Working backwards at 9% over 5 years, here is the loan size each monthly payment supports.
| Monthly payment | Loan amount |
|---|---|
| $200/month | $9,635 |
| $300/month | $14,452 |
| $400/month | $19,269 |
| $500/month | $24,087 |
When is half of a $20,000 loan repaid?
With a $415.17 payment, the balance falls below half ($10,000) after 34 payments, about 2.8 years into a 5 years loan. Because interest is highest at the start, the second half of the loan is paid down much faster than the first.
| After | Balance left | Paid so far |
|---|---|---|
| 1 year | $16,683 | $4,982 |
| 2 years | $13,056 | $9,964 |
| 3 years | $9,088 | $14,946 |
Frequently asked questions
How is a loan payment calculated?
The payment is principal × r ÷ (1 − (1 + r)^−n), where r is the monthly rate (APR ÷ 12) and n is the number of months. Each payment covers that month’s interest first, and the rest reduces the balance.
What is the difference between interest rate and APR?
The interest rate is the cost of borrowing the money. APR also includes certain fees, so it is the better number for comparing offers. This calculator treats the rate you enter as the rate that accrues on the balance.
Will extra payments save interest?
Yes, if your lender applies them to principal and charges no prepayment penalty. Use the extra payment field to see the effect.
Does this calculator store my data?
No. Everything runs in your browser. Nothing is sent to a server.
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Estimates from standard loan formulas, not a loan offer or financial advice. Example rates are assumptions: use your own quote.