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Personal Loan Calculator
About the Personal Loan Calculator
See what a personal loan will really cost. Enter the amount, rate and term to find the monthly payment and the total interest.
How to use the Personal Loan Calculator
- Enter the Loan Amount ($) and Interest Rate (%).
- Choose the Loan Term from 1 to 7 years.
- Press Calculate to see your payment and total cost.
Formula and method
Payment = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1) with r the monthly rate and n the number of months.
Worked example
A $15,000 loan at 12% for 5 years has a payment of about $333.67 a month and costs roughly $5,020 in interest.
When to use the Personal Loan Calculator
- Checking the monthly cost of a loan for a large purchase or debt consolidation.
- Comparing several lenders' rates and terms.
- Working out the total you will repay.
Common mistakes to avoid
- Borrowing more than you need because the lender offers it.
- Not checking for origination fees, which are taken from the loan amount.
- Using a long term to get a small payment and paying much more in interest.
Tips
- Compare APRs from several lenders. Even one percentage point matters.
- Check for origination fees, which are often taken from the loan amount.
- Only borrow what you need and can repay comfortably.
Frequently Asked Questions
Lenders vary, but a score of 670 or higher usually qualifies for better rates. Lower scores may still qualify at higher rates.
A shorter term has higher payments but much less total interest. Pick the shortest term you can afford.
Most personal loans are unsecured, which means no collateral is needed, but rates are higher than for secured loans.
It can, if the new rate is lower than your current debts and you avoid running up the old debts again.