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Personal Loan Calculator

Updated January 2026

A personal loan calculator helps you plan your borrowing by showing your monthly payments, total interest, and the true cost including any origination fees. Whether you're consolidating debt or funding a large purchase, know your numbers before you apply.

How to Use This Calculator

Enter the loan amount you need, the APR you expect to qualify for, and the repayment term in years. If your lender charges an origination fee, enter that as well — it affects your amount financed and effective APR. Click Calculate to see your monthly payment, total interest paid, total cost, and the true APR with any fees included.

How It's Calculated

Personal loans use the standard amortization formula:

M = P × [ i(1+i)^N ] / [ (1+i)^N − 1 ]

Where P is the loan amount, i is the monthly interest rate (APR / 12), and N is the total number of monthly payments. If an origination fee is charged, the effective APR is calculated as the rate where the present value of all payments equals the amount you actually receive (P minus the fee).

Frequently Asked Questions

Your personal loan interest rate is primarily determined by your credit score, income, debt-to-income ratio, and the loan amount and term. Borrowers with excellent credit (740+) typically qualify for the lowest rates, while those with fair or poor credit face higher rates. Loan type matters too — secured loans (backed by collateral) have lower rates than unsecured loans. Current market conditions and the lender's pricing model also play a role.
Personal loans are often better for large, planned expenses because they offer lower interest rates than credit cards (average personal loan rates are typically 6–36% APR versus 20–28% for credit cards) and provide fixed monthly payments over a set term. Credit cards are better for smaller, flexible purchases and offer rewards and grace periods. Using a personal loan to consolidate high-interest credit card debt can save significant money on interest.
APR (Annual Percentage Rate) includes both the interest rate and any fees charged by the lender, such as origination fees. It represents the true annual cost of borrowing. The interest rate is simply the cost of borrowing the principal. For example, a loan with a 10% interest rate and a 3% origination fee might have an APR of 12%. Always compare APRs rather than just interest rates when shopping for loans.

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