Personal Loan Calculator
See your monthly payment, total interest, and the true cost of a personal loan — and how different terms compare.
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💳 Comparing loan offers?
APR, fees, and terms vary widely between lenders — always compare the total cost, not just the monthly payment. (Affiliate: add lender comparison links here.)
How loan payments are calculated
M = P × r(1+r)n / ((1+r)n − 1), where P is the loan amount, r the monthly rate (APR ÷ 12), and n the number of payments. Total interest = M × n − P. This assumes fixed rate, fixed term, and no fees — check your offer for origination fees or prepayment penalties.
Frequently asked questions
How is a personal loan monthly payment calculated?
With the amortization formula M = P × r(1+r)^n / ((1+r)^n − 1), where P is the loan amount, r the monthly interest rate (APR ÷ 12), and n the number of monthly payments.
What is a good APR for a personal loan?
It depends on credit: borrowers with excellent credit may see single-digit APRs, while average rates are often 10–15%. Always compare offers — even 1% matters over several years.
How does the loan term affect total interest?
A longer term lowers the monthly payment but increases total interest substantially, because you pay interest for more months. A shorter term costs more monthly but far less overall.
Should I choose a shorter or longer loan term?
Choose the shortest term whose monthly payment fits your budget comfortably. Use this calculator to compare: the total-interest difference is often eye-opening.
Do personal loans have origination fees?
Many do — typically 1–8% of the loan amount, deducted from the funds you receive or added to the balance. Factor fees into the true cost when comparing offers.
Does paying extra each month reduce interest?
Yes, as long as there is no prepayment penalty. Extra payments go toward principal, which shrinks the balance that future interest is charged on.