Personal Loan Calculator United States

A personal loan is a fixed sum you borrow and repay in equal monthly installments over a set number of months. Because the rate is fixed and the schedule is known in advance, you can work out the monthly payment, the total you will repay and the total interest before you sign. Enter how much you want to borrow, the APR the lender is offering and the term in months, and the calculator returns the level payment and the lifetime cost of the loan.

How the monthly payment is worked out

Fixed-rate personal loans use amortization. The APR is divided by twelve to get a monthly rate, and the calculator finds the single payment that, repeated every month, clears the balance to zero on the final month. This is the standard annuity payment equation: the payment equals the loan amount multiplied by the monthly rate, divided by one minus the quantity one plus the monthly rate raised to the negative power of the number of months. Mainstream lenders use the same math, so the payment shown should match a genuine quote closely.

Where your money goes each month

The monthly payment stays the same, but its split between interest and principal changes. Early on the balance is large, so most of each payment is interest. As the balance falls, the interest charged each month shrinks and more of the payment goes to principal. That is why paying a little extra in the first year saves more interest than the same extra payment near the end. The calculator reports total interest as one figure, but the schedule front-loads that cost.

Choosing a term

After the rate, the term has the most effect on cost. Spreading the same loan over more months lowers the monthly payment, but you pay interest for longer and hand over more in total. A shorter term means higher monthly payments and a lower total cost. Enter the same amount and rate with a 24-month, 36-month and 60-month term to see the monthly figure fall while the total interest climbs, then pick the shortest term your budget can carry every month.

A worked example

Suppose you borrow $10,000 at 11.5% APR over 36 months. The monthly rate is 11.5% divided by twelve, and the amortization formula returns a monthly payment of about $329.76. Over 36 payments that comes to roughly $11,871 repaid, of which about $1,871 is interest. At 7.9% the monthly payment falls to about $313 and the total interest to around $1,264, so a few percentage points on the APR change the lifetime cost by about $600. Stretch the term to 60 months at the original rate and the monthly payment falls, but you pay interest across five years instead of three.

Fees

The calculator treats the rate you enter as the APR charged on the balance. Real loans can carry costs outside that number, most often an origination fee that some lenders deduct from the amount you receive or add to the balance. A meaningful origination fee pushes your effective cost above the interest figure shown, so compare offers on the full APR including fees, not the headline rate. Late fees, and in rare cases prepayment penalties, can also apply, depending on how you manage the loan.

Assumptions and limitations

This is an estimate for planning and comparison. It assumes a fixed rate for the whole term, equal monthly payments, no missed or extra payments, and no fees beyond the rate you enter. It does not model variable-rate loans, origination or late fees, insurance add-ons, or early payoff. Your actual APR depends on your credit profile, income and the lender, so treat the output as an approximation of a real quote, not a binding offer. Before borrowing, get the exact APR, any fees and the total cost of credit from the lender in writing.

About This Personal Loan Calculator

Use this personal loan calculator to get an instant estimate based on the figures you enter. Adjust the inputs above to match your situation, or browse all our calculators to plan your next step.