Personal Loan Calculator
See your true monthly payment, total cost with fees, and a full payment timeline — before you sign anything.
How to Use the Personal Loan Calculator
Our personal loan calculator gives you a comprehensive look at the true cost of borrowing before you commit. Simply enter your desired loan amount, select a repayment term, input the interest rate you've been quoted, and — critically — include any origination fee the lender charges. The calculator instantly updates your monthly payment, total interest, payoff date, and true APR so you can compare offers with full transparency.
Most online calculators ignore origination fees, which can dramatically change the real cost of a loan. An origination fee is deducted from your loan proceeds upfront, meaning you receive less money but still repay the full amount. Our tool factors this in, showing you both the advertised rate and the true APR — the metric that actually matters when comparing lenders.
Understanding Personal Loan Costs
A personal loan is an unsecured installment loan — meaning there's no collateral (like a car or house) backing it. Because of this, personal loan interest rates tend to be higher than secured loans, typically ranging from 6% to 36% depending on your credit score, income, and the lender's criteria.
The three main factors that determine your total cost are:
- Loan amount: The principal you borrow. Larger loans mean more interest paid over time, even at the same rate.
- Interest rate: Expressed as an annual percentage rate (APR). Even a 1% difference can save or cost you hundreds of dollars over the life of the loan.
- Loan term: A longer term means lower monthly payments but significantly more total interest. A 60-month term at 10% costs nearly double the interest of a 36-month term.
The Hidden Cost of Origination Fees
Many personal loan lenders charge an origination fee — typically 1% to 8% of the loan amount — that's deducted before you receive your funds. For example, if you borrow $15,000 with a 5% origination fee, you'll only receive $14,250, but you'll make payments on the full $15,000. This effectively raises your borrowing cost above the stated APR.
Our calculator computes the true APR by solving for the internal rate of return based on the cash you actually receive versus the payments you make. This is the number you should use when comparing two lenders side by side.
Tips for Getting the Best Personal Loan
Before applying, take these steps to maximize your chances of a great rate:
- Check your credit score — Scores above 720 typically qualify for the best rates. Many lenders offer free pre-qualification with a soft credit pull.
- Compare at least 3-5 lenders — Banks, credit unions, and online lenders all price differently. Use our Loan Comparison Tool to evaluate side by side.
- Choose the shortest term you can afford — Lower terms mean less total interest, even though monthly payments are higher.
- Watch for fees — Origination fees, prepayment penalties, and late fees can add up. A "low rate" loan with a 6% origination fee may cost more than a slightly higher rate with no fees.
- Consider autopay discounts — Many lenders offer 0.25% to 0.50% rate discounts if you set up automatic payments.
When Does a Personal Loan Make Sense?
Personal loans are best for debt consolidation (especially high-interest credit card debt), major purchases, medical expenses, or home improvements. If you can secure a rate significantly lower than your credit card rates, consolidating with a personal loan can save thousands. However, if you're borrowing for discretionary spending, carefully consider whether the purchase is worth the total interest cost shown by this calculator.
Frequently Asked Questions
An origination fee is a one-time charge by the lender for processing your loan, typically ranging from 1% to 8% of the loan amount. It's usually deducted from your loan proceeds before disbursement, meaning you receive less money than the total loan amount. For example, a $10,000 loan with a 3% origination fee means you receive $9,700 but repay the full $10,000 plus interest.
The interest rate is the annual cost of borrowing the principal balance, while APR (Annual Percentage Rate) includes the interest rate plus any fees, expressed as a yearly rate. When a lender charges an origination fee, the APR will be higher than the stated interest rate. APR gives you a more accurate picture of the total borrowing cost and is the best metric for comparing loan offers from different lenders.
A longer loan term lowers your monthly payment but increases the total interest you pay over the life of the loan. For example, a $15,000 loan at 9% costs about $1,448 in interest over 24 months, but $3,577 over 60 months. Choose the shortest term where the monthly payment is comfortably within your budget — ideally keeping total debt payments below 36% of your gross monthly income.
Most modern personal loans allow early payoff without penalties, but always check your loan agreement for a prepayment penalty clause. Paying off your loan early saves you interest — the remaining payments would have included interest that you no longer owe. Some lenders even allow extra payments toward principal, which accelerates your payoff timeline and reduces total interest paid.
Most lenders require a minimum credit score of 580-620 for personal loans, though the best rates (under 10% APR) typically require scores of 720 or higher. Some online lenders consider alternative factors like income and employment history. If your credit score is below 580, consider a credit-builder loan or secured loan as alternatives, and focus on improving your score before applying for a larger unsecured loan.
This calculator is for educational purposes only. Results are estimates and should not be considered financial advice. Actual loan terms, rates, and fees may vary by lender. Consult a qualified financial advisor for personalized guidance.