Personal Loan Calculator

1. Enter the loan amount you want to borrow.
2. Enter the annual rate (APR) the lender quotes.
3. Set the term in months.
4. Optionally add an extra monthly payment and any origination fees.
5. Read the monthly payment, total interest, total cost and payoff time.

A personal loan calculator estimates the monthly payment and total cost of an unsecured loan from three inputs: the amount, the annual rate and the term. It uses the standard amortization formula, the same maths banks use, so you can compare offers and check what you can afford before you apply.

A personal loan is usually unsecured, meaning it is not tied to a house or car. Rates are fixed for the term, so the payment stays the same each month while the split between interest and principal shifts.

P is the amount borrowed, r is the monthly rate (APR divided by 12) and n is the number of months.

1. Convert the APR to a monthly rate by dividing by 12.
2. Apply the formula to get the fixed monthly payment.
3. Each month, interest is charged on the remaining balance and the rest of the payment reduces the principal.

Adding an extra amount each month goes straight to principal, which shortens the term and cuts total interest.

Borrow 20,000 dollars at a 9 percent APR over 60 months. The monthly payment is about 415 dollars, and over the full term you pay roughly 4,910 dollars in interest, for a total of 24,910 dollars. Add 100 dollars a month and you clear the loan around nine months early and save several hundred dollars in interest.

Interest Rate (APR)

The rate is set by your credit score, income and the lender. A lower APR cuts both the payment and the total interest, so it pays to compare offers.

Loan Term

A longer term lowers the monthly payment but raises total interest, because you borrow for longer. A shorter term costs more each month but far less overall.

Loan Amount and Fees

Borrowing more raises the payment. Origination fees, often 1 to 8 percent, add to the real cost even though they do not change the headline payment.

Choose the shortest term whose payment still fits your budget comfortably.

Comparing Loan Offers

Run each offer with its own rate, term and fees to see the true total cost, not just the monthly payment.

Consolidating Debt

Check whether a personal loan at a lower rate beats your current credit-card interest before you consolidate.

Planning Extra Payments

Test how a small extra amount each month shortens the term and cuts interest before you commit.

1. Judging Only the Monthly Payment

A low payment from a long term can hide a much larger total interest bill. Always compare the total cost.

2. Ignoring Fees

Origination fees raise the real cost and the effective APR, so include them.

3. Confusing Rate and APR

APR includes some fees and is the fairer number for comparing loans.

4. Borrowing More than You Need

Every extra dollar borrowed adds interest for the whole term.

The calculator uses exact monthly amortization, so the payment and interest are accurate for the inputs. It assumes a fixed rate and equal payments.

A personal loan uses the amortization formula: payment equals the amount times the monthly rate, divided by one minus (one plus the monthly rate) to the power of minus the number of months.

Rates vary widely by credit, roughly 7 to 36 percent. Borrowers with strong credit often see single digits, while lower scores pay much more, so compare several offers.

Yes, a longer term lowers the monthly payment but increases the total interest, because you borrow the money for longer. A shorter term costs more monthly but less overall.

Yes. Extra payments go straight to the principal, which shortens the term and reduces total interest, as long as the loan has no prepayment penalty.

The interest rate is the cost of borrowing the principal, while the APR also includes certain fees, making it the fairer figure for comparing loan offers.

Most personal loans are unsecured, meaning they are not backed by an asset. Because the lender takes on more risk, rates are usually higher than secured loans like mortgages.

Not directly, but they raise the real cost of the loan and its effective APR. Include any fees when comparing offers on total cost.

Lenders typically offer from around 1,000 dollars up to 50,000 dollars or more, based on your income, credit and existing debts.

No. The calculator runs entirely in your browser and nothing you enter is stored or sent anywhere.

• How loan amortization works (Wikipedia).
• Interest rate vs APR (Wikipedia).
• What unsecured debt means (Wikipedia).