A personal loan gives you a lump sum up front, repaid in equal monthly installments over a fixed term, usually two to seven years. The interest rate is only part of the price. Many lenders also charge an origination fee, often taken straight out of the money you receive. This personal loan calculator shows the monthly payment, the cash that actually reaches your account and the APR once the fee is counted. It also compares the cost across terms.
How to use the personal loan calculator
- Enter the amount and choose whether it is the loan amount or the cash you need in hand.
- Enter the interest rate and the term in months.
- Enter any origination fee and whether it is taken from the proceeds, the most common setup, or added to the loan.
- Optionally enter an extra payment each month to see how much sooner you would finish.
Personal loan formulas
- P is the balance that accrues interest: the loan amount, plus the fee if it is added to the loan.
- r is the monthly rate (annual rate ÷ 12), and n is the number of payments.
The APR is the monthly rate × 12 at which the payments repay exactly the cash you receive:
This is the same approach lenders follow under the Truth in Lending Act’s Regulation Z. It is why two loans with the same interest rate can have different APRs.
Worked example
You borrow $15,000 at 13.5% for 48 months with a 5% origination fee taken from the proceeds.
- Fee: $750, so $14,250 reaches your account.
- Payment: $406.14 a month, for $19,494.95 in total payments.
- Interest: $4,494.95. Interest plus fee: $5,244.95.
- APR: 16.31%.
If you need the full $15,000 in hand, you would borrow $15,789.47 and pay $427.52 a month.
Term comparison
The same loan at different terms:
| Term | Payment | Interest + fee | APR |
|---|---|---|---|
| 24 months | $716.66 | $2,949.73 | 18.76% |
| 36 months | $509.03 | $4,075.06 | 17.14% |
| 48 months | $406.14 | $5,244.95 | 16.31% |
| 60 months | $345.15 | $6,458.86 | 15.82% |
| 84 months | $276.97 | $9,015.76 | 15.25% |
A longer term lowers the payment and the APR, because the fee is spread over more months, but it raises total cost. That is why APR alone doesn’t tell you which term is cheapest.
Getting a better personal loan
- Compare APRs, not rates, from several lenders, including credit unions, which often charge lower fees.
- Prequalify with soft-pull rate checks before you formally apply.
- Pick the shortest term you can afford to keep interest down.
- Look for no-fee lenders if your credit qualifies. A no-fee loan at 15% can cost less than a 13.5% loan with a 5% fee.
For other borrowing questions, the loan calculator solves for the amount, term or rate. The how much loan can I afford calculator works from your budget. If the loan is meant to pay off credit cards, compare it with your current debts in the debt consolidation calculator.
Estimates only. Your lender's Truth in Lending disclosure shows the official APR, finance charge and payment schedule.
Frequently asked questions
How is a personal loan payment calculated?
Personal loans are fixed-rate installment loans, so the payment uses the standard amortization formula: P × r ÷ (1 − (1 + r)^−n), with r the yearly rate ÷ 12 and n the number of months. A $15,000 loan at 13.5% for 48 months costs $406.14 a month.
How does an origination fee change my APR?
When the fee comes out of the proceeds, you pay interest on money you never receive. On a $15,000, 48-month loan at 13.5% with a 5% fee, you get $14,250 but repay as if you borrowed $15,000, so the APR is 16.31% instead of 13.5%. Shorter terms make the same fee weigh more: the APR is 18.76% at 24 months.
How much should I borrow if the fee is deducted?
Divide the cash you need by (1 − fee rate). To end up with $15,000 after a 5% fee, borrow $15,000 ÷ 0.95 = $15,789.47. Choose Cash I need in the calculator to do this automatically.
Can I pay off a personal loan early?
Most personal loans have no prepayment penalty, but check your agreement. Extra payments go to principal and cut interest. Adding $100 a month to the example loan pays it off in 37 months instead of 48 and saves about $1,145 in interest. The origination fee is not refunded.
What APR is typical for a personal loan?
It depends heavily on credit. Borrowers with excellent credit can find single-digit or low-teens APRs, while fair or poor credit can mean 20% to 36%. Prequalifying with several lenders shows your likely rates without a hard credit inquiry.