Free Personal Loan Calculator
Enter the amount you want to borrow, the APR you were offered, and the repayment term. The calculator shows your monthly payment, the total interest you will pay, and the full cost of the loan.
This free personal loan calculator uses the standard amortization formula: the monthly payment equals the loan amount times the monthly rate, divided by one minus the monthly rate factor raised to the negative number of payments. For example, a $15,000 loan at 10 percent APR for 3 years costs about $484 a month, with about $2,424 in total interest.
Estimates only. Actual offers include origination fees and vary by credit profile. Shorter terms mean higher payments but far less interest. Not financial advice.
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How personal loan math works
A personal loan payment comes from the amortization formula: M = P times r divided by (1 minus (1 + r) raised to negative n). P is the amount borrowed, r is the monthly interest rate (APR divided by 12), and n is the number of monthly payments. The formula spreads principal plus all interest into equal monthly payments.
Take a $15,000 loan at 10 percent APR for 36 months. The monthly rate is 0.10 divided by 12, about 0.008333. The payment works out to about $484 a month. Over 36 payments that totals about $17,417, so about $2,417 is interest, roughly 16 percent of the amount borrowed.
The term is the biggest lever you control. Stretch that same loan to 60 months and the payment drops to about $319, which feels easier, but total interest nearly doubles to about $4,123. Lenders love long terms because the borrower pays far more interest for the comfort of a smaller payment.
APR is not the whole price. Many personal loans charge an origination fee, often 1 to 8 percent, deducted from the amount you receive. A $15,000 loan with a 5 percent origination fee puts only $14,250 in your hands while you pay interest on the full $15,000. Always compare the APR plus fees, not the rate alone.
Your credit score sets your rate more than anything else. Excellent-credit borrowers see single-digit APRs; fair-credit borrowers often see 18 to 25 percent; below that, some lenders charge up to 36 percent, where borrowing rarely makes sense. Improving your score before you apply is the highest-return move in borrowing.
Personal loan questions
How is a personal loan payment calculated?
The monthly payment comes from the amortization formula: loan amount times the monthly interest rate, divided by one minus (1 + monthly rate) raised to the negative number of payments. For a $15,000 loan at 10 percent APR over 36 months, the payment is about $484.
What is a good APR for a personal loan?
Borrowers with excellent credit can find APRs under 10 percent, while good-credit borrowers typically see 10 to 15 percent. Fair credit often means 18 to 25 percent. Above 25 percent, alternatives like secured loans, credit counseling, or waiting and improving credit usually beat borrowing.
Is a longer loan term better?
A longer term cuts the monthly payment, which helps cash flow, but it increases total interest dramatically because you pay interest for more months on a slower-shrinking balance. On a $15,000 loan at 10 percent, 60 months costs about $4,129 in interest versus $2,417 at 36 months. Pick the shortest term with a payment you can comfortably afford.
Do personal loans hurt your credit score?
The application triggers a hard inquiry costing a few points temporarily. After that, on-time payments build positive history and the loan can improve your credit mix. But a single 30-day late payment can drop your score substantially, so autopay is close to mandatory.