Personal Loan Calculator
Calculate the monthly payment, total interest, and total cost of a personal loan — including origination fees.
How this personal loan calculator works
Personal loans are typically fixed-rate, fixed-term installment loans: you borrow a lump sum and repay it in equal monthly payments until it's paid off. This calculator applies the standard loan amortization formula to your loan amount, rate, and term to find your monthly payment, then separately shows the effect of an origination fee, which many personal loan lenders subtract from your loan before sending you the money — even though you still repay interest on the full loan amount.
The formula
Monthly payment = P × [r(1+r)n] ÷ [(1+r)n − 1], where P is the loan amount, r is your monthly interest rate (APR ÷ 12), and n is the number of monthly payments.
Why the origination fee matters
If a lender charges a 3% origination fee on a $15,000 loan, they deduct $450 and deposit $14,550 into your account — but your monthly payment and total interest are still calculated on the full $15,000. That effectively raises the true cost of borrowing above the stated interest rate, which is one reason it's worth comparing loans by their APR (which factors in fees) rather than just the interest rate.
Frequently asked questions
What's the difference between interest rate and APR?
The interest rate is the cost of borrowing the principal. APR (annual percentage rate) also factors in fees like origination charges, giving you a more complete picture of the loan's true annual cost — which is why comparing APRs across lenders is usually more accurate than comparing interest rates alone.
Can I pay off a personal loan early?
Most personal loans allow early payoff, but some carry a prepayment penalty — check your loan agreement. If there's no penalty, paying extra toward principal (see our Loan Payoff Calculator) can meaningfully cut your total interest.
What credit score do I need for a good rate?
Rates vary widely by lender, but borrowers with scores above 700 typically qualify for the lowest advertised rates, while those with scores below 650 often see APRs in the high teens or twenties. Shopping multiple lenders with a soft-pull prequalification won't hurt your score.
Is a personal loan better than a credit card?
Personal loans usually carry lower interest rates than credit cards and have a fixed payoff date, making them a common way to consolidate higher-rate credit card debt into one predictable monthly payment.