How Much Interest Will I Pay on a Loan?
Let’s use a real example to see exactly how much interest you will pay over the life of a loan.
Loan example
Loan amount: $30,000
Interest rate: 6% annually
Term: 5 years (60 months)
Monthly payment
Monthly payment ≈ $579.98
Total paid
Total payment ≈ $34,798.80
Total interest
Interest paid ≈ $4,798.80
What this shows
Even a moderate interest rate adds thousands of dollars over time.
Related guides
Read our loan payment example and monthly interest explanation.
Key takeaway
Total interest depends on both the rate and the loan duration.