Personal Loan Calculator

Monthly payment · Total interest · Amortization · Origination fees · Payoff planner

Loan Details
$
%
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Quick Rates
Common Terms
Results
Monthly Payment
$322
Total Interest
$1,592
Total Cost
$11,592
Origination Fee
$300
You Receive
$9,700
Effective APR
12.1%
Interest-to-Loan
15.9%
Principal vs Interest Breakdown
Amortization Schedule ▾
# Payment Principal Interest Balance
Scenario A
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%
Monthly Payment--
Total Interest--
Total Cost--
Effective APR--
Scenario B
$
%
%
Monthly Payment--
Total Interest--
Total Cost--
Effective APR--
Scenario C
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Monthly Payment--
Total Interest--
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Effective APR--
Extra Payment Settings
Uses the loan details from the Calculator tab. Adjust extra payment to see savings.
$
Quick Amounts
Payoff Comparison
Without Extra
Payoff Time
36 months
Total Interest
$1,592
Total Paid
$11,592
VS
With Extra
Payoff Time
31 months
Total Interest
$1,352
Total Paid
$11,352
🎉
You save $240 in interest and pay off 5 months earlier!
Balance Over Time

How Personal Loans Work

1

Apply & Get Approved

Lenders evaluate your credit score, income, debt-to-income ratio, and employment history to determine your rate and loan amount.

2

Receive Funds (Minus Fees)

After approval, the lender disburses your loan amount minus any origination fee. A $10,000 loan with a 3% fee means you receive $9,700.

3

Make Fixed Monthly Payments

You repay the full loan amount plus interest in equal monthly installments over the agreed term, typically 12 to 60 months.

4

Pay Off Early (Optional)

Most personal loans allow early payoff without penalty. Extra payments reduce your principal faster, saving interest and shortening your term.

Key Formulas

Monthly Payment
M = P × r(1+r)n / [(1+r)n − 1]
P = principal, r = monthly rate, n = number of payments
Total Interest
Total Interest = (M × n) − P
Sum of all payments minus the original loan amount
Origination Fee
Fee = P × Fee%
Deducted from proceeds; you receive P − Fee
Effective APR
APR accounts for fees over loan term
Higher than stated rate when origination fee is charged

Glossary

APR
Annual Percentage Rate. The yearly interest rate charged on borrowed money, not including compounding.
Origination Fee
A one-time fee (1-8%) charged by the lender for processing your loan, deducted from your loan proceeds.
Amortization
The process of paying off a loan in equal installments, where each payment covers interest and principal.
Principal
The original amount borrowed, excluding interest and fees.
Effective APR
The true annual cost of borrowing when origination fees are factored in, always higher than the stated APR.
Unsecured Loan
A loan not backed by collateral. Personal loans are typically unsecured, resulting in higher rates than secured loans.

Example Calculations

Debt Consolidation

Loan: $15,000 at 9% APR for 48 months, 2% origination fee

Monthly Payment: $373

Total Interest: $2,906

Fee: $300 — You receive $14,700

Home Improvement

Loan: $25,000 at 7.5% APR for 60 months, 3% fee

Monthly Payment: $501

Total Interest: $5,035

Fee: $750 — You receive $24,250

Medical Expense

Loan: $5,000 at 12% APR for 24 months, no fee

Monthly Payment: $235

Total Interest: $647

Fee: $0 — You receive $5,000

Frequently Asked Questions

How is my personal loan monthly payment calculated?

Your monthly payment is calculated using the standard amortization formula: M = P × [r(1+r)n] / [(1+r)n − 1]. P is the loan principal, r is the monthly interest rate (annual rate divided by 12), and n is the total number of monthly payments. Each payment is split between interest (on the remaining balance) and principal reduction.

What is an origination fee and how does it affect my loan?

An origination fee is a one-time charge (typically 1-8% of the loan amount) that the lender deducts from your proceeds before disbursement. For example, a $10,000 loan with a 3% origination fee means you receive $9,700 but still repay the full $10,000 plus interest. This increases your effective APR above the stated interest rate.

What is a good interest rate for a personal loan?

Personal loan rates typically range from 6-36% APR depending on your credit score. Excellent credit (750+) may qualify for 6-10%, good credit (700-749) for 10-15%, fair credit (640-699) for 15-23%, and poor credit may see rates of 24% or higher. Always compare offers from multiple lenders.

How do extra payments reduce my personal loan cost?

Extra payments go directly toward reducing your principal balance. With a lower balance, less interest accrues each month, which means more of each subsequent payment goes to principal. This creates a compounding effect that shortens your payoff time and can save you hundreds or thousands in total interest.

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