Personal Loan Calculator

What this calculator does

Personal loans use the same fixed-rate amortization math as a mortgage or auto loan. You enter the loan amount, APR, and term in months, and the calculator shows your monthly payment, total interest, and total paid over the life of the loan.

How personal loan math works

M = P × r(1 + r)^n / ((1 + r)^n − 1)

Where P is the principal, r is the monthly rate (APR ÷ 12), and n is the term in months. Most personal loans are 2–7 years.

The biggest decision: shorter vs longer term

A 36-month loan has higher monthly payments but far less total interest than a 72-month loan at the same rate. Most personal-finance experts recommend the shortest term you can comfortably afford — extra cushion in the budget is rarely worth thousands of dollars in interest.

Tips and common mistakes

• Compare APR, not rate. APR includes the origination fee and reflects the true annual cost.
• Check credit unions first. They often beat banks and online lenders by a meaningful margin.
• Watch for prepayment penalties. Most reputable lenders don't charge them, but always confirm in the loan documents before signing.
• Don't reload the cards. If you're using a personal loan to consolidate, freeze the old credit cards.

Frequently asked questions

What is a personal loan?

A personal loan is an unsecured fixed-rate installment loan, typically for $1,000–$100,000 with terms of 2–7 years. You receive a lump sum and repay it in equal monthly payments. Common uses include debt consolidation, medical bills, home improvement, and major purchases.

What is a good personal loan rate?

Rates depend heavily on your credit score and term. As of 2024–2026, prime borrowers see 7–12% APR; subprime rates can exceed 25%. Always compare offers from at least three lenders, including credit unions and online lenders, which often beat traditional banks.

Should I use a personal loan to consolidate credit card debt?

Often yes. A 9% personal loan replacing 22%+ credit card debt can save thousands and gives you a fixed payoff date. The risks are (1) running up the credit cards again after consolidation and (2) origination fees. Run both scenarios in the calculator to see the savings.

How does origination fee affect my real APR?

Many lenders deduct an origination fee (1–8%) from your loan proceeds. If you borrow $10,000 at 10% APR with a 5% fee, you actually receive $9,500 but repay as if you borrowed $10,000 — your effective APR is meaningfully higher. Always look at the APR (which includes fees) rather than the rate.

What's the difference between secured and unsecured loans?

Unsecured loans don't require collateral; the lender relies on your credit and income. Secured loans (e.g., HELOC, auto loan) are backed by an asset and typically have lower rates but put that asset at risk if you default.