Personal Loan Calculator
Calculate your personal loan monthly payments, total interest costs, and view a detailed amortization schedule. Whether you are consolidating debt, financing a major purchase, or covering unexpected expenses, this calculator helps you understand the true cost of borrowing and compare different loan scenarios.
How to Use This Personal Loan Calculator
1. Enter the loan amount you wish to borrow (typically $1,000 to $100,000 for personal loans).
2. Input the annual percentage rate (APR) offered by your lender. Personal loan rates typically range from 6% to 36% depending on your credit score and lender.
3. Select your desired loan term. Shorter terms mean higher monthly payments but less total interest paid.
4. If applicable, enter the origination fee percentage (many lenders charge 1% to 8% of the loan amount).
5. Click "Calculate Personal Loan" to see your monthly payment, total costs, and a comparison of different terms.
What is a Personal Loan?
A personal loan is an unsecured loan that you can use for almost any purpose, including debt consolidation, home improvements, medical expenses, weddings, vacations, or emergency costs. Unlike secured loans such as mortgages or auto loans, personal loans do not require collateral, which is why they typically have higher interest rates.
Personal loans are installment loans, meaning you borrow a fixed amount and repay it in equal monthly payments over a set term. Most personal loans have fixed interest rates, so your monthly payment stays the same throughout the life of the loan. Loan terms typically range from 12 to 84 months, with amounts from $1,000 to $100,000 depending on the lender and your creditworthiness.
- Unsecured: No collateral required, but rates are higher than secured loans
- Fixed Rates: Most personal loans offer fixed APRs for predictable payments
- Flexible Use: Funds can be used for almost any legitimate purpose
- Quick Funding: Many lenders offer same-day or next-day funding
Personal Loan Payment Formula
The monthly payment for a personal loan is calculated using the standard amortization formula:
M = P[r(1+r)^n]/[(1+r)^n-1]
Where: M = Monthly payment, P = Principal (loan amount), r = Monthly interest rate (APR / 12), n = Total number of payments (loan term in months).
When an origination fee is charged, the true APR will be higher than the stated rate because you receive less money but pay interest on the full loan amount. This calculator shows you both the stated APR and the effective (true) APR after accounting for fees.