How to use this personal loan calculator
- Loan amount: how much you're borrowing.
- Interest rate and term: the rate offered and the repayment period, from one to seven years.
- Origination fee: as a percentage or a dollar amount. Enter 0 if your loan has no fee.
You'll see your monthly payment, the APR including the fee, how much you actually receive, the total interest and the total cost of borrowing, plus a year-by-year amortization schedule.
How the payment and APR are calculated
The monthly payment uses the standard formula for a fixed-rate installment loan, based on the full loan amount:
If the origination fee is deducted from the loan, you repay the full amount but only receive the loan minus the fee. The APR is the annual rate at which your payments exactly repay that smaller amount. That's why it's higher than the interest rate whenever there's a fee.
Worked example
The stated rate is 10%, but because you only receive $9,500 while repaying as if you had $10,000, the true yearly cost is about 13.56%.
Comparing loan offers
Suppose a second lender offers the same $10,000 over 36 months at 12% with no fee:
| Offer | Monthly payment | Total interest | Fee | Total cost | APR |
|---|---|---|---|---|---|
| 10% + 5% fee | $322.67 | $1,616.20 | $500 | $2,116.20 | 13.56% |
| 12%, no fee | $332.14 | $1,957.18 | $0 | $1,957.18 | 12.00% |
The 12% loan has the higher rate and the higher monthly payment, yet it costs about $159 less overall and gives you the full $10,000. Comparing APRs, or the total cost, shows the better deal at a glance.
What to check before you borrow
- Your credit. Rates on personal loans depend heavily on credit history and income. Check your credit report for errors before applying.
- Prequalification. Many lenders show estimated rates with a soft credit check that doesn't affect your score.
- How the fee is charged. Ask whether it's deducted from the loan or added to the balance, and enter it accordingly.
- Prepayment terms. Check for prepayment penalties if you plan to pay early.
- The purpose. If you're consolidating credit cards, compare the new loan's APR with your cards' APRs; our debt snowball calculator shows what your current plan costs.
Secured vs unsecured personal loans
Most personal loans are unsecured: the lender relies on your credit and income rather than an asset. Some lenders offer secured personal loans backed by savings or a vehicle, which can come with a lower rate because the lender can take the asset if you don't repay. Only put up security you could afford to lose.
Using a personal loan to consolidate debt
A personal loan can replace several high-interest debts with one fixed payment and a set end date. For example, a $15,000 balance paid over 36 months costs $572.86 a month at 22% APR, but $498.21 at 12% APR. Consolidation only helps if:
- the new loan's APR, including any fee, is lower than what you pay now;
- the term isn't so long that total interest ends up higher; and
- you stop adding new balances to the cards you've paid off.
Use this calculator for the loan and our debt snowball calculator for your current debts, then compare the total cost of each.
Fixed or variable rate?
Most personal loans have a fixed rate, so your payment stays the same for the whole term and the calculator's results hold. Some lenders offer variable-rate loans that start lower but can change with market rates. If you're considering one, run the calculator at a higher rate as well to see how much the payment could rise, and make sure you could still afford it.
How lenders decide your rate
Lenders look at your credit history, income, existing debts and the loan amount and term. A lower debt-to-income ratio and a longer record of on-time payments usually mean better offers, so paying down card balances before applying can help.
What this calculator doesn't include
The results assume a fixed rate, equal monthly payments and an origination fee deducted when the loan is funded. They don't include late fees, insurance products or other charges. If your lender adds the fee to the balance rather than deducting it, enter the larger balance as the loan amount and set the fee to 0. Always compare the result with the APR and total cost on the lender's official disclosure.