EXCEL SOLUTIONS

Compare loan payments

Find the monthly payment on a loan and how much interest you pay in total.

IntermediateFinance and accountingAbout 6 minutes

Steps

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  1. Monthly payment on 20,000 over 60 months at 5% a year.

    Result377.42

  2. Total paid over the whole loan.

    Result22645.48

  3. Total interest is what you pay above the loan.

    Result2645.48

  4. Try 36 months instead.

    Result599.42

  5. Interest saved by the shorter loan.

    Result1066.43

What to remember

A shorter loan has a higher payment but costs less interest. Always divide the yearly rate by 12 for monthly payments.

Formulas used

PMTROUND

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