How the Personal Loan Calculator works
A personal loan is typically a fixed-rate, fixed-term installment loan: you borrow a lump sum and pay it back in equal monthly payments. Each payment covers that month's interest first, and the rest goes toward reducing your principal.
Enter your loan amount, interest rate, and term to see your exact monthly payment, how much interest you'll pay in total, and roughly when the loan will be paid off.
Because personal loans are usually unsecured, their rates tend to run higher than secured loans like mortgages or auto loans. Shopping around and comparing your rate against other borrowing options can make a meaningful difference in your total cost.
A worked example
A $12,000 unsecured personal loan at 11.5% over 3 years has a payment of $395.71. You repay $14,245.63 in total, of which $2,245.63 is interest.
| Term | Monthly payment | Total interest |
|---|---|---|
| 2 years | $562.86 | $1,309 |
| 3 years | $395.71 | $2,246 |
| 5 years | $263.94 | $3,836 |
Personal-loan rates depend heavily on credit score; a borrower with strong credit might see 8–10%, while a thin file could be quoted 20% or more.
How to read your results
The monthly payment is fixed for the life of the loan. Total interest is the cost of borrowing; add any origination fee (often 1–8% of the amount) to get the full picture — use the APR Calculator for that.
When to use this calculator
Use it to size a debt-consolidation loan, a home repair, or a large one-off expense, and to compare a personal loan against alternatives like a 0% credit-card offer or a home-equity line.
Common mistakes to avoid
- Consolidating debt, then running the cards back up. The loan only helps if the old balances stay at zero.
- Choosing the longest term for the lowest payment. It maximizes interest and keeps you in debt longer.
- Skipping the fee. An origination fee of a few percent meaningfully raises the APR on a short loan.
- Not rate-shopping. Pre-qualification with several lenders is usually a soft credit pull and can save hundreds.