Personal Loan Calculator
Calculate loan payments, interest costs, and repayment schedules.
Loan Details
Amount you want to borrow
Fair credit: 15-20% typical
Personal loans typically 2-7 years
Fees
Upfront fee (typically 1-6% of loan)
Administrative fee
Fee for early payoff (if any)
Personal Information
Fair - Higher rates likely
Gross monthly income
Existing debt payments (credit cards, loans, etc.)
Loan Results
Monthly Payment
Principal & Interest
Amount Received
After fees deducted
Total Interest
Over loan term
Principal vs Interest
Cost Breakdown
Affordability Analysis
✓ This loan appears affordable based on your income
Credit Score Impact
Fair - Higher rates likely
Loan Timeline
Personal Loan Tips
- • Shop rates from multiple lenders (banks, credit unions, online)
- • Check your credit score before applying
- • Consider debt consolidation if you have high-interest debt
- • Avoid prepayment penalties when possible
- • Personal loans are unsecured and typically have higher rates
How it works
A personal loan is an unsecured, fixed-rate installment loan: you borrow a lump sum and repay it in equal monthly payments. The calculator amortizes the amount, but the number that matters most is the APR, which folds the interest rate and any origination fee into one true cost.
Payment & true cost
M = P · r(1 + r)ⁿ / [(1 + r)ⁿ − 1] Amount received = P − origination fee
- M
- monthly payment
- P
- loan principal
- r
- monthly rate (APR ÷ 12)
- n
- number of payments
Worked example
- Borrow P = $15,000 at 11% APR
- 4-year term → n = 48, r = 0.11 ÷ 12 ≈ 0.00917
- 5% origination fee = $750
- (1 + r)ⁿ = 1.00917⁴⁸ ≈ 1.551
- M = 15,000 × 0.00917 × 1.551 ÷ (1.551 − 1) ≈ $387
Payment ≈ $387/month, but you receive only $14,250 after the fee — so the effective cost is higher than the headline rate.
Good to know
- Compare offers by APR, not the interest rate — the origination fee can swing the real cost by several percentage points.
- Because personal loans are unsecured, rates hinge heavily on your credit score; a strong score can roughly halve the rate.
- Watch for prepayment penalties — without one, paying early simply saves the remaining interest.
Related Calculators
Frequently Asked Questions
What is a personal loan and how does it work?
A personal loan is an unsecured loan you can use for almost any purpose. You borrow a fixed amount and repay it in equal monthly payments over a set period (usually 2-7 years) with a fixed interest rate. Unlike credit cards, personal loans have a defined payoff date and typically lower interest rates.
How do I determine the best loan terms?
Compare APR (not just interest rate), total cost, monthly payment affordability, and loan terms. While longer terms mean lower monthly payments, you'll pay significantly more in total interest. Look for the shortest term you can comfortably afford for the lowest total cost.
How does my credit score affect personal loan rates?
Your credit score has a huge impact on your rate. Excellent credit (740+) may qualify for rates as low as 6-8%, while fair credit (640-679) could see rates of 18-25% or higher. Even a small improvement in your score can save you thousands in interest.
What are typical personal loan interest rates in 2025?
As of 2025, personal loan rates typically range from 6% to 36% depending on your creditworthiness. The average rate is around 11-12% for borrowers with good credit. Rates vary significantly between lenders, so it's essential to shop around and compare offers.
Should I get a personal loan or use a credit card?
Personal loans are usually better for large, one-time expenses with fixed repayment plans. They typically have lower interest rates than credit cards (11% vs 18-25%) and structured payoff dates. Credit cards are better for smaller, ongoing expenses with flexibility to pay varying amounts each month.
How much can I borrow with a personal loan?
Most personal loans range from $1,000 to $50,000, though some lenders offer up to $100,000. The amount you qualify for depends on your income, credit score, debt-to-income ratio, and the lender. Generally, lenders prefer your monthly debt payments (including the new loan) to be less than 40% of your gross monthly income.
What fees should I watch out for with personal loans?
Common fees include origination fees (1-8% of loan amount), late payment fees ($25-$50), prepayment penalties (though rare now), and NSF fees. Some lenders charge no origination fees, which can save you hundreds. Always calculate the total cost including all fees, not just the interest rate.
Can I pay off a personal loan early?
Most modern personal loans allow early payoff without penalties, which can save you significant interest. However, always verify this before signing - some lenders still charge prepayment penalties. Even without penalties, some lenders use the "Rule of 78" calculation that front-loads interest, reducing your savings from early payoff.