Personal Loan Calculator
Estimate the monthly payment on a personal loan, then see how an origination fee changes the cash you receive and the true APR, compare terms, add extra payments and get a full amortization schedule.
How it works
Monthly payment = P · r ÷ (1 − (1 + r)^−n) · r = rate ÷ 12 · n = months · Interest = payment × n − P · True APR = 12 × the monthly rate at which the payments equal the cash you receive
A fixed-rate personal loan is repaid in equal monthly installments. Each payment covers that month’s interest on the balance first and the rest reduces the principal, so early payments are interest-heavy and later ones are mostly principal. A shorter term raises the payment but cuts the total interest sharply; the term table shows the trade-off from 1 to 7 years. Many lenders charge an origination fee. Usually it is taken out of the loan, so you receive less cash but still repay the full amount; some lenders add it to the balance instead, which means you also pay interest on it. Either way the fee raises the true cost, which is why the calculator works out the APR from the cash you actually get: it finds the yearly rate at which your payments (plus any monthly insurance or account charge) are worth exactly that amount. That true APR is the number to compare between offers. Extra payments go straight to principal and are compared with the same loan without them.
Worked example
Borrow $15,000 at 12% for 3 years. The monthly rate is 12% ÷ 12 = 1%, over 36 payments. Payment = 15,000 × 0.01 ÷ (1 − 1.01^−36) = $498.21 a month, for $2,935.73 of interest and $17,935.73 repaid. With a 5% origination fee taken out of the loan you receive $14,250 but repay the same $17,935.73, so the true APR is about 15.6% and borrowing costs $3,685.73 in all. Stretching the same loan to 5 years lowers the payment to $333.67 but raises the interest to $5,020.
Sources: CFPB — What is the difference between a loan interest rate and the APR? · CFPB — Regulation Z, Appendix J (annual percentage rate computations)
Frequently asked questions
How does an origination fee change what I pay?
If the fee is taken out of the loan, your payment stays the same but you receive less cash, so the loan costs more than its interest rate suggests. If it is added to the balance, you receive the full amount but the payment and the interest both go up. Enter the fee as a percent or an amount and pick how it is paid; the calculator shows the cash you receive, the true APR and the total cost of borrowing.
What is the difference between the interest rate and the APR?
The interest rate sets the payment. APR also counts upfront fees and required charges, spread over the term, so it is higher whenever there are fees. Lenders must show the APR before you sign, and it is the best single number for comparing offers with different fees.
How does the term affect what I pay?
A longer term lowers each monthly payment but stretches interest over more months, so you pay more in total. The term table lists the payment, the interest and the total cost for terms from 1 to 7 years so you can pick the shortest one whose payment fits your budget.
Can I pay a personal loan off early?
Most lenders allow it, but some charge a prepayment penalty, so check your agreement. Under More options you can add a monthly or one-time extra payment to see the interest saved and the new payoff date.
Is the rate fixed?
Most personal loans carry a fixed rate, so the payment shown stays the same for the life of the loan. Variable-rate loans can change with a benchmark index, which this calculator does not model.
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Educational estimate, not financial advice. Actual loan terms, fees and interest depend on your lender and credit profile.