Personal Loan Calculator

Calculate monthly payment and total cost for any personal loan. Compare rates by credit score. Enter loan amount, interest rate, and term for full payment breakdown and amortization.

Guides & Reference

How It Works

Monthly payment and total costBudgeting for a loan, comparing offers.

Enter loan amount, annual interest rate, and term in months (12-84 typically). Payment = P × r(1+r)^n / [(1+r)^n − 1]. Results show monthly payment, total interest, total cost, and full amortization table. Compare different rates and terms to find the best combination for your budget.

PMT = P × r(1+r)^n / [(1+r)^n − 1]$10k at 12%, 36mo: $332/mo, $1,956 total interest
Credit score rate comparisonFinding the best rate for your creditworthiness.

The calculator shows estimated rates by credit score tier. Excellent credit at 10% vs fair credit at 22% on a $15,000 loan over 36 months: excellent = $484/mo ($2,424 interest), fair = $577/mo ($5,772 interest) — $3,348 more. Improving credit before applying saves thousands.

Rate tiers: Excellent 8-12%, Good 12-18%, Fair 18-26%$15k, 36mo: 10% costs $2,424 interest vs 22% costs $5,772
Origination fee impactFinding true cost with upfront fees.

If the lender charges an origination fee, enter the net loan amount received (loan − fee) but calculate payments on the full amount. Example: $10,000 loan with 3% fee ($300): you receive $9,700 but repay $10,000 at the stated rate. The effective APR is higher than stated. Compare APR across lenders for fair comparison.

Effective loan = requested amount − origination fee$10k loan, 3% origination: receive $9,700, repay $10k + interest
Debt consolidation analysisUsing a personal loan to pay off high-interest credit cards.

Enter the total amount you want to consolidate. Compare: current weighted average interest rate on all debt vs personal loan rate. If personal loan rate is lower, consolidation saves money. Example: $15,000 across credit cards at average 21% APR: a 12% personal loan saves $2,700 over 36 months.

Save = (CC_payment − loan_payment) × term + interest difference$15k CC at 21%: loan at 12% saves ~$2,700 over 36mo
Loan term optimizationBalancing monthly payment with total interest cost.

Run the calculator at 24, 36, 48, and 60-month terms for the same loan. The amortization table shows how quickly equity builds (principal is paid down). In most cases, the shorter the term you can afford, the better. Avoid terms beyond 60 months for personal loans — total interest becomes very high.

24mo vs 60mo: much higher payment, but 60% less total interest$10k at 15%: 24mo saves $2,640 interest vs 60mo

Quick Reference

Verify these in the calculator above.

Payment

$10k at 12%, 36mo

$332/mo, $1,956 interest

Higher rate

$10k at 22%, 36mo

$383/mo, $3,788 interest

Shorter term

$10k: 24mo vs 60mo at 15%

Save $2,640 interest

Fee impact

3% origination fee on $10k

Receive $9,700

Consolidate

$15k CC at 21% vs loan 12%

Save ~$2,700, 36mo

Excellent

Credit score 750+ rate

8-12% APR

Fair

Credit score 650 rate

18-26% APR

Term

Max personal loan term

60-84 months typically

Tips & Shortcuts

Compare APR (not just interest rate) across lenders — origination fees are included in APR and give the true cost of borrowing.

Pre-qualifying with multiple lenders (soft credit pull) does not hurt your score. Get 3-5 quotes before accepting any offer.

Improving your credit score by even 50 points before applying can reduce your rate significantly, saving thousands on larger loans.

For debt consolidation, calculate whether the monthly payment savings and interest savings outweigh any origination fees.

Personal loan rates are fixed — unlike credit cards. This makes budgeting predictable and ensures the balance always decreases with each payment.

Common Mistakes

Comparing interest rates instead of APR

Two lenders: 12% rate with 3% origination fee vs 13% rate with no fee. The first has higher effective APR. Always compare APR which includes origination fees.

Choosing 60-month term for the lower payment without checking total cost

A $10,000 loan at 15% for 60 months: $238/mo but $4,280 total interest. At 36 months: $347/mo but $1,492 total interest. Extra $109/month saves $2,788.

Using a personal loan for discretionary spending

Personal loans for vacations or non-essentials at 15-20% interest are expensive. Reserve personal loans for emergencies, debt consolidation at a lower rate, or investments that generate returns exceeding the loan rate.

Not checking for prepayment penalties

Most personal loans have no prepayment penalty, but verify before signing. Some lenders charge fees for early payoff. If penalty exists, factor it into the total cost calculation.

Accepting the first offer without shopping

Personal loan rates vary dramatically by lender. Credit unions are typically 2-4% lower than online lenders. Shopping with 3+ lenders using soft pulls (pre-qualification) takes minutes and can save thousands.

Frequently Asked Questions

Monthly payment = Loan × monthly_rate / (1 − (1+monthly_rate)^(−term)). Monthly rate = annual rate / 12. Example: $10,000 at 12% for 36 months: monthly rate = 0.12/12 = 0.01. Payment = 10000 × 0.01 / (1 − 1.01^−36) = $332.14.

Rates vary by credit score: Excellent (750+): 8-12%. Good (700-749): 12-18%. Fair (650-699): 18-26%. Poor (below 650): 26-36%+. Rates also depend on loan amount and term. Shorter terms often have lower rates. Credit unions typically offer lower rates than online lenders.

Most lenders offer $1,000 to $100,000 for personal loans. Maximum depends on income, credit score, and debt-to-income ratio. The standard guideline: monthly payment should not exceed 15-20% of take-home income. Use the calculator to find a comfortable payment.

Shorter term: higher payment but less total interest. Longer term: lower payment but significantly more total interest. A $10,000 loan at 15%: 24-month term = $485/mo, $1,640 total interest. 60-month term = $238/mo, $4,280 total interest. Unless the budget requires the lower payment, shorter is better.

Origination fees (1-8% of loan amount) are common and reduce the effective loan proceeds. A $10,000 loan with 3% origination fee means you receive $9,700 but repay $10,000. The effective APR including fees is always higher than the stated interest rate. Compare APR across lenders.

750+ for excellent rates (single digits to low 12%). 700-749 for good rates (12-18%). 650-699 for fair rates (18-26%). Below 650, rates become very high (26%+) and some lenders decline the application. Improving credit score by 50 points can save thousands in interest.

Most personal loans allow early payoff without penalty. Paying extra reduces total interest paid. The calculator shows the amortization schedule — extra payments reduce the balance and save all future interest on that amount.

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