Personal Loan Calculator
Estimate your monthly payment, total interest, and total cost for a personal loan.
How personal loan payments are calculated
Personal loans use a standard amortization formula: your fixed monthly payment is calculated from the loan amount, interest rate and term so that the loan is fully paid off — principal and interest — by the end of the term. Early payments are weighted more heavily toward interest, with more of each payment going toward principal as the loan matures. Because personal loans are typically unsecured, their rates tend to be higher than secured loans like mortgages or auto loans, but lower than credit cards.
What is an origination fee?
Many personal loan lenders charge an origination fee, commonly 1-8% of the loan amount, either deducted from your loan proceeds upfront or added to the balance. This calculator shows an illustrative 3% origination fee estimate as a heads-up cost so you can budget for it, since it's a real expense that affects your true cost of borrowing even though it doesn't change your calculated monthly payment here.
When does a personal loan make sense?
Personal loans are commonly used for debt consolidation, home improvements, medical expenses, or major purchases, since they offer a fixed rate and predictable payoff date unlike revolving credit card debt. They tend to make the most financial sense when the APR is meaningfully lower than what you're currently paying elsewhere, and when you want a clear, fixed timeline to become debt-free.
Frequently Asked Questions
How is my personal loan payment calculated?
This calculator uses the standard amortization formula, factoring in your loan amount, interest rate and term so the loan is paid off in equal monthly installments. Each payment is split between interest and principal, with the interest portion shrinking as your balance goes down.
What is a good interest rate for a personal loan?
Rates vary widely based on credit score, typically ranging from around 7-36% APR. Borrowers with excellent credit (720+) often qualify for single-digit to low-teens rates, while those with weaker credit may see rates well above 20%.
Do all personal loans charge an origination fee?
No, some lenders charge no origination fee while others charge 1-8% of the loan amount, often deducted from your loan proceeds before you receive the funds. This calculator shows an illustrative 3% estimate so you can budget for this common cost, but always confirm the exact fee with your lender.
Should I use a personal loan to consolidate credit card debt?
It can make sense if the personal loan's fixed APR is meaningfully lower than your credit cards' rates, since it converts variable, revolving debt into a predictable payment with a clear payoff date. Just be sure to avoid running the credit card balances back up after consolidating.
Does choosing a longer loan term save money?
A longer term lowers your monthly payment but increases the total interest paid over the life of the loan, since the balance takes longer to shrink. A shorter term costs more per month but saves money overall — compare terms above to see the trade-off for your loan amount.
Is a personal loan secured or unsecured?
Most personal loans are unsecured, meaning they don't require collateral like a car or home. Because the lender takes on more risk, unsecured personal loans typically carry higher interest rates than secured loans, but they're generally faster to obtain and don't put an asset at risk.
Can I pay off a personal loan early?
Most personal loans allow early payoff without penalty, which can save you money on interest since less time means less interest accrued. However, some lenders charge prepayment penalties, so it's worth checking your loan agreement before making extra payments.
How does a personal loan affect my credit score?
Applying triggers a hard inquiry that can temporarily lower your score slightly, but making on-time payments over the loan term can help build positive payment history and improve your credit mix, which may boost your score over time.