Estimate your monthly payment, total interest cost, and effective APR for a personal loan. Factor in origination fees to see the true cost of borrowing. View a full amortization schedule showing how each payment splits between principal and interest.
Personal loans are unsecured installment loans — fixed amount, fixed rate, fixed term, typically 2–7 years. The interest rate is driven by your credit score and income, ranging from about 6% for excellent credit to 36% (federal usury cap) for subprime borrowers. Most are used for debt consolidation, home improvement, medical bills, or major purchases.
This calculator computes the monthly payment, total interest, and the effective APR including origination fees. Origination fees (1–8% of loan amount, typically deducted from proceeds) make the effective borrowing rate higher than the quoted APR — and lenders compete on this number too. A 9% APR loan with a 5% origination fee can have an effective APR of 12% or higher.
Personal loans make most sense as a tool for consolidating higher-rate debt. If you can refinance a 22% credit card balance into a 10% personal loan, you save substantially on interest and gain a predictable payoff schedule. They make less sense for discretionary spending, where the alternative is "don't spend the money."
$15K credit card balance at 22% APR, minimum payments of $300/mo. Refinance into a $15K personal loan at 10% APR, 3 years, 2% origination fee ($300). Credit card timeline: ~7 years, ~$11,000 total interest Personal loan: 3 years, $2,316 interest + $300 fee = $2,616 Savings: ~$8,400 and 4 years off the payoff. The catch: you have to commit to the new payment AND not run up the credit cards again.
$25K kitchen remodel, financed via personal loan at 10.5% APR, 5 years, 3% origination fee. Disbursement: $24,250 Monthly payment: $537 Total cost over 5 years: $32,229 (29% premium over project cost) Alternative: HELOC at 8% would cost less but requires home equity. Cash if available is always cheaper than financing.
Use a personal loan when: - Consolidating high-interest credit cards (the math usually works) - You need a predictable fixed monthly payment instead of a revolving balance - The alternative is a higher-rate credit card or payday loan - You can't access cheaper credit (HELOC, 401(k) loan, family)
Don't use a personal loan for: - Discretionary spending you couldn't otherwise afford - Investment in volatile assets (crypto, stocks) - Paying ongoing expenses you can't cover with income - A short-term cash gap better served by a credit card and disciplined payoff
Shop the loan: rates and origination fees vary widely. Get pre-qualified offers from 3–5 lenders (most use soft credit pulls for pre-quals — no credit score impact). Compare effective APR, not just quoted APR.
Compare consolidating multiple debts into a single loan to see if you save money.
Compare debt payoff strategies — snowball (lowest balance first), avalanche (highest interest first), and more.
Generate a full amortization schedule for any loan.
Calculate the true APR of a loan including all fees and costs.
Calculate monthly payments and total cost for a boat or marine loan.
Calculate available credit and payments for a home equity line of credit.
Monthly Payment
$480
Total Interest
$2,298
Origination Fee
$300
Effective APR
10.89%
| Month | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | $480.49 | $361.74 | $118.75 | $14,638.26 |
| 2 | $480.49 | $364.61 | $115.89 | $14,273.65 |
| 3 | $480.49 | $367.49 | $113.00 | $13,906.15 |
| 4 | $480.49 | $370.40 | $110.09 | $13,535.75 |
| 5 | $480.49 | $373.34 | $107.16 | $13,162.41 |
| 6 | $480.49 | $376.29 | $104.20 | $12,786.12 |
| 7 | $480.49 | $379.27 | $101.22 | $12,406.85 |
| 8 | $480.49 | $382.27 | $98.22 | $12,024.58 |
| 9 | $480.49 | $385.30 | $95.19 | $11,639.28 |
| 10 | $480.49 | $388.35 | $92.14 | $11,250.93 |
| 11 | $480.49 | $391.42 | $89.07 | $10,859.50 |
| 12 | $480.49 | $394.52 | $85.97 | $10,464.98 |