Personal Loan Calculator
Quickly calculate the monthly payment and total interest for any personal loan. Whether it is for home improvements, medical bills, debt consolidation, or any other purpose, enter the loan amount, interest rate, and term to see exactly what you will owe each month and in total.
This calculator provides estimates for general informational purposes only and does not constitute financial advice. Consult a qualified financial professional before making any financial decisions.
How It Works
Personal loans use the same fixed installment (EMI) formula as mortgages and auto loans:
Monthly payment = P × r(1+r)^n / ((1+r)^n − 1)
Where P is the loan principal, r is the monthly interest rate (APR ÷ 12 ÷ 100), and n is the loan term in months.
Worked example: $15,000 personal loan at 12% APR for 36 months.
r = 12/12/100 = 0.01
Monthly payment = 15,000 × 0.01 × (1.01)^36 / ((1.01)^36 − 1)
= 15,000 × 0.01 × 1.4308 / 0.4308
≈ $498.22/month
Total paid = $498.22 × 36 = $17,935.92
Total interest = $17,935.92 − $15,000 = $2,935.92
Interest as % of loan = $2,935.92 / $15,000 = 19.6%
The interest percentage gives a useful single number for comparing loan offers. A loan with a lower rate but longer term might actually cost more total interest than one with a higher rate and shorter term.
Frequently Asked Questions
What is a typical personal loan interest rate?
Personal loan rates vary widely by credit score and lender. Borrowers with excellent credit (750+) may see rates of 6–12%; fair credit borrowers often see 18–28% or higher. Rates from banks and credit unions tend to be lower than online lenders for prime borrowers.
How does loan term affect total cost?
A longer term reduces monthly payments but increases total interest. On a $10,000 loan at 15% APR: a 24-month term costs about $1,615 in interest; a 60-month term costs about $4,273 — nearly three times as much. Choose the shortest term you can comfortably afford.
Are there fees not included in the APR?
Some lenders charge origination fees (1–8% of the loan) deducted from the disbursement. If your lender charges an origination fee, the actual amount you receive is lower than the loan amount. Adjust the loan amount in the calculator to the amount you actually need to receive, not the full loan amount.
When does a personal loan make sense vs a credit card?
Personal loans typically have lower interest rates than credit cards (especially for balances you carry for more than a few months) and a fixed payoff date. They work well for debt consolidation or large planned expenses. Credit cards are better for short-term float where you will pay in full.
What does the interest percentage figure mean?
Interest as a percentage of the loan shows how much extra you are paying relative to what you borrowed. A 20% figure means for every $1 borrowed you are repaying $1.20. This is useful for comparing loans of different sizes and terms.