Personal Loan Calculator
Calculate the monthly payment on a fixed-rate personal loan and see how an origination fee raises the true cost. The APR estimate shows what the fee does to your rate.
Results
Monthly payment
$498.21
Late fees and optional add-ons such as payment protection are not included.
- Amount borrowed
- $15,000.00
- Total interest
- $2,935.73
- Total of payments
- $17,935.73
- Paid off in
- 3 years
- Estimated APR
- 14.13%
Principal 84%Interest 16%
How this was calculated
Monthly rate r = 12% ÷ 12 = 0.010000. Number of payments n = 36.
Payment = P × r(1 + r)n ÷ ((1 + r)n − 1), where P = $15,000.00. Each month, interest is charged on the remaining balance and the rest of the payment reduces the balance.
The APR estimate assumes the 3% fee ($450.00) is deducted from the money you receive, so you repay $15,000.00 but receive $14,550.00.
Lenders round to the cent and some accrue interest daily, so your statement may differ slightly.
Amortization schedule
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | $4,416.23 | $1,562.34 | $10,583.77 |
| 2 | $4,976.32 | $1,002.25 | $5,607.44 |
| 3 | $5,607.44 | $371.13 | $0.00 |
The starting values are examples only, not current rates. Replace them with your own figures.
Why the origination fee matters
Many personal loans charge an origination fee, usually a percentage of the loan, that is taken out of the money you receive. If you borrow $15,000 with a 3% fee, you receive $14,550 but repay the full $15,000 plus interest.
Because of this, the interest rate alone understates the cost. The annual percentage rate (APR) includes the fee, and US lenders must disclose it under the Truth in Lending Act. This calculator estimates the APR by finding the rate at which your payments equal the cash you actually receive.
If you need a specific amount in hand, divide it by one minus the fee. For example, to receive $10,000 with a 5% fee, you would need to borrow about $10,526.
Comparing personal loan offers
Offers with different rates, fees and terms are hard to compare by monthly payment alone. Run each offer through the calculator, then compare:
- APR — the best single number for comparing the cost of loans with the same term.
- Total of payments — what you will pay in total if you keep the loan to the end.
- Monthly payment — whether it fits your budget with room to spare.
- Prepayment terms — whether you can pay early without a penalty.
Using a personal loan to consolidate debt
A fixed-rate personal loan can replace higher-rate debts such as credit card balances with one payment and a set payoff date. It saves money only if the new APR is lower and you avoid building up new balances on the cards you paid off.
To check, add up the current balances, enter them as the loan amount, and compare the total interest with what you would pay by keeping the cards and paying the same monthly amount.
What affects the rate you are offered
Lenders set personal loan rates mainly from your credit history, income, existing debts and the loan term. Many lenders offer prequalification with a soft credit check, which shows likely rates without affecting your credit score. The formal application usually involves a hard inquiry.
Same rate, different terms
A $15,000 loan at an example 12% rate repaid over three terms. Personal loans commonly range from one to seven years.
| Scenario | Borrowed | Rate | Term | Monthly payment | Total interest |
|---|---|---|---|---|---|
| 24 months | $15,000 | 12% | 2 years | $706.10 | $1,946 |
| 36 months | $15,000 | 12% | 3 years | $498.21 | $2,936 |
| 60 months | $15,000 | 12% | 5 years | $333.67 | $5,020 |
Choosing the shortest term you can comfortably afford keeps the total interest down. A longer term gives more breathing room each month but costs more overall.
How the calculation works
The personal calculator uses the same fixed-rate amortization formula as our main loan calculator. Interest is charged monthly on the remaining balance, and equal payments pay off the loan by the end of the term. For a step-by-step walkthrough, read how loan amortization works.
Personal loan questions
Why is my APR higher than my interest rate?
The APR includes finance charges such as the origination fee. Because the fee reduces the cash you receive while your payments stay the same, the effective yearly cost is higher than the stated interest rate.
Is the origination fee added to the loan or taken out?
Most lenders deduct it from the amount you receive, which is what this calculator assumes. Some add it to the balance instead. Check your loan agreement — the Truth in Lending disclosure shows the amount financed.
Can I pay off a personal loan early?
Many personal loans have no prepayment penalty, but check your agreement. Use the extra payment field to see how much interest paying early could save.
Does the APR estimate match my disclosure exactly?
It should be close for a standard fixed-rate loan with the fee deducted at the start. Your lender’s disclosure is the official figure and may reflect other finance charges or a different first-payment date.
Sources and further reading
- Regulation Z (Truth in Lending), 12 CFR Part 1026 — Consumer Financial Protection Bureau
- Credit reports and scores — Consumer Financial Protection Bureau
Related calculators
Have a different kind of loan? Use the general loan payment calculator.