20,000 loan calculator
A 20,000 loan at 8 % interest over 5 years costs 405.53 per month, or 24,331.67 in total (4,331.67 interest). Change the rate, term or extra payments in the calculator below.
Monthly payment on a 20,000 loan
| Term | 5% | 8% | 10% | 12% | 15% |
|---|---|---|---|---|---|
| 1 year | 1,712.15 | 1,739.77 | 1,758.32 | 1,776.98 | 1,805.17 |
| 2 years | 877.43 | 904.55 | 922.90 | 941.47 | 969.73 |
| 3 years | 599.42 | 626.73 | 645.34 | 664.29 | 693.31 |
| 5 years | 377.42 | 405.53 | 424.94 | 444.89 | 475.80 |
| 7 years | 282.68 | 311.72 | 332.02 | 353.05 | 385.94 |
| 10 years | 212.13 | 242.66 | 264.30 | 286.94 | 322.67 |
How the payment is calculated
Fixed-rate loans use the annuity formula M = P × r / (1 − (1 + r)^−n), where P is the amount (20,000), r the monthly rate (annual rate ÷ 12) and n the number of months. At 8 % for 60 months, r = 0.00667 and the payment is 405.53. The table above applies the same formula to every rate and term. Amounts work in any currency.
Shorter or longer term?
A longer term lowers the monthly payment but raises the total cost: at 8 %, spreading 20,000 over 10 years instead of 5 drops the payment to 242.66 but the interest grows to 9,118.62. If you can afford the higher payment, the shorter term saves money.
How to pay less interest
Compare the APR, not only the nominal rate, because fees raise the real cost. A better credit score or a co-signer can lower the rate. Extra payments go straight to the principal — try an extra amount in the calculator to see how many months you save. At 12 % the payment for 5 years would already be 444.89.
Popular calculations
Frequently asked questions
What is the monthly payment on a 20,000 loan?
At 8 % over 5 years it is 405.53 per month. At other rates and terms, see the table above or enter your own rate in the calculator.
How much interest will I pay on a 20,000 loan?
At 8 % over 5 years the total interest is 4,331.67. Over 10 years it rises to 9,118.62.
Does this include fees or insurance?
No. The figures cover principal and interest only. Add any origination fees, insurance or taxes your lender charges.