Personal Loan Calculator

Last Updated:

Calculate your exact monthly payment, total interest, and total cost for any personal loan.

$
%

Monthly Payment

$0.00

Loan Amount$0
Total Interest$0
Total Repayment$0

📐 Formula

Monthly Payment = P × [r(1+r)^n] / [(1+r)^n − 1] where P = principal, r = monthly rate, n = months

How to Use the Personal Loan Calculator

1

Enter the loan amount

Input the amount you need to borrow. Note that origination fees (1–8%) may be deducted from disbursement — you may need to borrow slightly more to receive the exact amount needed.

2

Set the interest rate

Enter your loan's APR — the legally required all-in rate including fees. Always compare APRs across lenders, not base rates, which can obscure fee structures.

3

Choose the term

Personal loans typically range 12–84 months. Compare total interest paid across terms, not just monthly payment — the total cost difference is significant.

4

Evaluate the purpose test

Would this loan's purpose generate value (debt consolidation savings, unavoidable expense) that justifies the total interest cost? If not, review alternatives.

When a Personal Loan Makes Financial Sense

Personal loans are most valuable in three scenarios. First, debt consolidation: replacing multiple 20–24% APR credit cards with a single 10–15% personal loan reduces total interest and simplifies repayment. On $15,000 of credit card debt, this rate difference can save $1,500–$2,500 in annual interest charges. Second, large necessary expenses: medical bills, emergency home repairs, or other unavoidable costs where savings do not yet cover the amount. Third, building credit: a small instalment loan repaid on time builds payment history and credit mix — both positive credit score factors.

Origination Fees: The Hidden Cost

A $10,000 loan with a 5% origination fee nets you $9,500 while requiring repayment of the full $10,000 plus interest — the effective rate is higher than the stated APR suggests. The APR calculation is legally required to include fees, so always compare APRs across lenders rather than base interest rates. Online lenders (SoFi, LightStream, Marcus) consistently offer lower APRs and fees than traditional banks for creditworthy borrowers. Getting pre-qualified with 3–4 lenders via a soft credit check (which does not affect your score) takes 15 minutes and can save hundreds of dollars in interest.

Sources & Methodology

Calculations are based on the most current publicly available data from authoritative government and industry sources:

Frequently Asked Questions

As of 2025, personal loan rates for good credit (700+) typically range from 8–15% APR. Rates below 10% are excellent. Rates above 20% are high — consider improving credit or exploring alternatives.
Most lenders offer personal loans from $1,000 to $50,000. The amount you qualify for depends on your income, credit score, and debt-to-income ratio. Some lenders go up to $100,000 for excellent credit.
Personal loans typically have much lower rates (8–15%) than credit cards (18–28%). For large purchases or debt consolidation, a personal loan is almost always cheaper than carrying a credit card balance.
Personal loan rates in 2026 range from 8–12% for excellent credit (750+), 13–20% for good credit (700–749), and 20–36% for fair credit. Rates vary widely by lender — credit unions and online lenders often beat banks. Always compare APR (not just interest rate) since APR includes origination fees.
Usually yes. Personal loans offer fixed rates (typically 10–20% vs credit card APRs of 20–30%), fixed monthly payments, and a defined payoff date. The main advantage: you can't re-accumulate the debt on a personal loan the way you can on a credit card. The risk: some borrowers run up cards again after consolidation.