The size of the monthly payment is important for budgeting, but it won’t tell you much about the total cost of the loan. That’s because repayment terms vary – longer loans have lower monthly payments but higher costs over their lives. It’s good to compare interest rates for loans with the same repayment terms, but different loan lengths change the picture. Overall, this is where an amortization schedule is important. It helps you see the total cost over the life of the loan – though you also have to add in fees.