Personal Loan Calculator
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."
Inputs
Results
Monthly Payment
$480
Total Interest
$2,298
Origination Fee
$300
Effective APR
5.89%
Total Cost Breakdown
Remaining Balance
Amortization Schedule
| 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 |
Formula
How to use this calculator
- Enter the loan amount you want to borrow.
- Enter the APR you've been quoted (or are comparing). Get pre-qualified rates from 2–3 lenders for accurate numbers.
- Choose the loan term. Shorter saves on interest; longer reduces monthly payment.
- Enter the origination fee percentage. This affects both the cash you receive and the effective APR.
- Compare monthly payment, total interest, and effective APR across loan offers.
- For debt consolidation use cases, compare against the credit card payoff calculator to confirm the personal loan saves money.
Worked examples
Debt consolidation
$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.
Home improvement
$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.
When to use this calculator
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.
Common mistakes to avoid
- Comparing quoted APR without origination fees. A 7% loan with 6% fee can be more expensive than a 10% loan with 0% fee.
- Using a personal loan to pay off cards, then re-running up the cards. This doubles the debt and is a leading cause of bankruptcy.
- Ignoring prepayment penalties. Most personal loans don't have them, but check.
- Taking longer terms to lower monthly payment without considering total cost. A 7-year personal loan at 12% is enormously expensive.
- Not checking if a HELOC, 401(k) loan, or refinance would be cheaper.
- Borrowing the maximum offered just because it's available. Borrow only what you need.
Frequently Asked Questions
Sources & further reading
- Personal loans — what to know — U.S. Consumer Financial Protection Bureau
- Debt consolidation — pros and cons — U.S. Federal Trade Commission