Personal Loan Calculator: Payment & Total Cost
Personal loans look simple — a fixed payment for a fixed term — but fees quietly change the real price. This free calculator shows your monthly payment, the total interest, and what the loan truly costs once origination fees are counted.
Personal Loan Calculator
How to Use This Calculator
Enter the amount you want to borrow, the interest rate you've been quoted, and the loan term in months. If the lender charges an origination fee, enter it as a percentage — it's usually in the fine print (1% to 8% is typical).
Click Calculate to see your monthly payment, how much actually lands in your account after the fee, the total interest, and the loan's true total cost. Reset clears everything.
The Formula
Personal loan payments follow the standard amortization formula: M = P × [r(1 + r)ⁿ] ÷ [(1 + r)ⁿ − 1], with P as the loan amount, r the monthly rate and n the number of months. The origination fee is deducted from P upfront, but interest is charged on the full amount.
Worked example: a $10,000 loan at 9.5% for 36 months with a 2% fee. The fee is $200, so $9,800 reaches your account. The monthly payment is $320.25, total paid is $11,529, and interest is $1,529. With the fee included, the loan's real cost is $1,729 — the effective APR is about 10.9%, noticeably above the quoted 9.5%.
Tips
Compare offers by APR, never by interest rate alone. APR folds the origination fee into the rate, so it's the only number that lets you compare two loans fairly.
Check for a prepayment penalty before signing. Most reputable personal loans let you pay extra or pay off early at no cost — and doing so cuts interest dramatically.
Only borrow what you need. It's tempting to round up "just in case," but every extra $1,000 on a 36-month loan at 9.5% costs about $152 in interest.
Frequently Asked Questions
What can I use a personal loan for?
Personal loans are flexible — common uses include consolidating high-interest credit card debt, paying for home repairs, medical bills, weddings or a large purchase. Because they are unsecured, lenders decide the rate mainly from your credit score and income. The best rates go to borrowers with scores above about 700.
What is an origination fee?
An origination fee is a one-time charge the lender deducts from your loan for processing it — commonly 1% to 8% of the amount. A $10,000 loan with a 5% fee puts only $9,500 in your account, but you repay the full $10,000 plus interest. That's why comparing APR (which includes the fee) matters more than comparing interest rates alone.
Does applying for a personal loan hurt my credit?
A hard credit inquiry can lower your score by a few points temporarily. Shopping around smartly minimizes this: most scoring models count multiple loan inquiries within a 14-day window as a single inquiry. Many lenders also offer pre-qualification with a soft pull, which does not affect your score at all.
Should I use a personal loan to pay off credit card debt?
If the loan's APR is meaningfully lower than your card's APR — and you stop adding new charges — consolidation can save hundreds or thousands in interest. The trap: freeing up your credit card and running the balance up again leaves you with both the loan and new card debt. Fix the spending pattern first, then consolidate.
How do I get the lowest personal loan rate?
Raise your credit score as high as possible before applying, lower your other debts, and compare offers from several lenders including banks, credit unions and online lenders. Credit unions often undercut banks by a point or two. Ask whether the lender allows paying off the loan early without a prepayment penalty — most quality personal loans do.