To find out monthly payments we first need to calculate the APR. For more information check out the APR calculator. Than this rate used to find out recurring payments, interest and principle. At last these payments helps building the payment table. Also in the table payment's interest and principal parts defined. Every row of the table represents one payment period, which is a month in this case.
Playing around with the numbers you will see that total payments are increasing dramatically with the term and interest rate. So choosing a loan with low interest rate or managing to pay higher monthly payments will save you from too much money wasted on interest. 💸 💸 💸
To give an example lets think that we applied for a 20000$ loan with %3 interest rate and 3 years term (36 months). Assuming there is no fees, our monthly payments are 581.62$ and total 938.47$ spend to interest. Adding %1 fees (200$) increased our APR to 3.66%, also our new monthly payments will be 587.44$. This doesn't seem much but actually now we have to pay 1147.86$ to interest. Lets increase the interest rate 1 points, to 4. Now APR is 4.66, monthly payments 596.38$ and total 1469.84 spent only for interest.