Enter the amount you borrow, the yearly interest rate and the number of years. The calculator spreads the loan into equal monthly payments (an amortized loan), the way most personal, car and housing loans work.
Monthly payment = P × r ÷ (1 − (1 + r)^−n), where P is the loan amount, r the monthly rate (yearly rate ÷ 12) and n the number of months.
Borrowing 10,000 at 5% a year for 5 years: r = 0.05 ÷ 12 ≈ 0.004167 and n = 60, so the payment is about 188.71 a month. Over 60 payments you repay about 11,322.74, which means about 1,322.74 in interest.