Personal Loan Calculator

How to use this calculator

1. Enter your loan amount and the interest rate your lender quoted.
2. Set the loan term in years and months, and a start date.
3. If there is an origination fee or credit insurance, tick “Include fee and insurance” and enter them — this reveals the real APR.
4. Press Calculate to see your monthly payment, total interest, cost of the loan and the full amortization schedule.

How this personal loan calculator works

A personal loan is an installment loan: you borrow a fixed amount and repay it in equal monthly payments over a set term. This personal loan payment calculator takes your loan amount, interest rate and term and applies the standard amortization formula to work out that fixed monthly payment, your total interest, and the full cost of the loan. Because most personal loans carry an origination fee — and sometimes optional insurance — it also computes the real APR, which folds those charges into a single rate so you can compare offers on an equal footing. Many people take out a personal loan for debt consolidation — rolling higher-rate credit-card balances into one fixed monthly payment — and because lenders weigh your debt-to-income ratio when they set a rate, it pays to gather a few personal loan quotes and compare the fee-inclusive APR before you commit.

Each month, part of your payment covers interest on the outstanding balance and the rest reduces the principal. Early on more goes to interest; later, more goes to principal. The amortization schedule above shows this split month by month (or year by year) and the payoff date when the balance reaches zero.

The personal loan payment formula

A personal loan is repaid like an annuity, so the fixed monthly payment comes straight from the standard amortization formula:

M = P × r ÷ (1 − (1 + r)⁻ⁿ)

where M = monthly payment, P = loan amount (principal), r = monthly interest rate (the annual rate divided by 12, as a decimal), and n = number of monthly payments (the term in months).

For example, a $20,000 loan at 10% over 5 years gives r = 0.10 ÷ 12 = 0.008333 and n = 60, so M = 20,000 × 0.008333 ÷ (1 − 1.008333⁻⁶⁰) = $424.94 a month. If the interest rate is 0%, the payment is simply the loan amount divided by the number of months. The calculator then folds in any origination fee to work out the real APR.

How much is a $20,000 personal loan per month?

As a worked example, a $20,000 personal loan at a 10% interest rate over a 5-year (60-month) term works out to about $424.94 a month. Over the full term you repay roughly $25,496, of which about $5,496 is interest. If the lender charges a 5% origination fee ($1,000) deducted from the loan, you receive $19,000 but still repay the full $20,000 — which lifts the real APR to about 12.2%. Change the amount, rate or term above to see your own figures; a $10,000 or $5,000 loan at the same rate simply scales the payment down.

Monthly payment by loan amount

Here is roughly what common personal loan amounts cost per month at a 10% interest rate over a 5-year term. Enter your own rate and term above for exact figures.

Interest rate vs APR

The interest rate is the cost of borrowing the principal. The APR (annual percentage rate) is broader: it includes the interest and upfront charges such as the origination fee, expressed as a yearly rate. Two loans can share the same interest rate yet have very different APRs once fees are counted, so the fee-inclusive APR is the more honest number for comparing personal loans — and this tool shows both.

Personal loan fees to watch

• Origination fee — a one-time charge for processing and funding the loan, commonly 1% to 8% of the amount. It is usually taken out of what you receive, so a $10,000 loan with a 5% fee nets you $9,500 while you still repay $10,000.
• Prepayment fee — a charge for clearing the loan early. It is increasingly rare, but worth checking if you plan to pay ahead of schedule.
• Late-payment fee — charged when a payment misses its due date; paying on time avoids it entirely.

Secured vs unsecured personal loans

Most personal loans are unsecured — not backed by collateral. The lender relies on your credit and income, which is why unsecured loans carry higher rates than a mortgage or auto loan. Secured personal loans, offered by some banks and credit unions, are backed by savings, a CD or another asset; they can come with lower rates but put that asset at risk if you fall behind. This calculator works for either — just enter the terms your lender quotes.

Common uses: debt consolidation and more

One of the most popular reasons to take a personal loan is debt consolidation: rolling higher-rate credit-card balances into a single fixed payment at a lower rate. Because card APRs are often far higher than personal-loan rates, consolidating can cut both the interest you pay and the time to clear the debt — provided the loan's fee-inclusive APR really is lower. Other common uses include medical bills, home improvements, a large purchase, or a one-off expense such as a move or a wedding. If you’re weighing consolidation, the debt payoff calculator shows how fast a snowball or avalanche plan would clear the same balances.

Rates and creditworthiness in 2026

Your rate depends heavily on your credit score, income and existing debts. In 2026, U.S. personal-loan rates broadly range from about 7% to 36%: borrowers with excellent credit can see rates in the low double digits (roughly 11–16%), while fair or poor credit pushes toward the high 20s and beyond, with an overall average near 12% for strong applicants. Treat any single quote as one data point and compare several lenders using the APR.

Estimates for general information only — not financial advice. Confirm the exact rate, fees and terms with your lender before you borrow.

Key terms explained

Installment loan vs revolving credit

A personal loan is installment credit: you borrow a fixed amount once, then repay it in equal scheduled payments until it is gone. That structure is its main advantage over the revolving credit of a card or line of credit, where the balance and payment move up and down and the debt can linger indefinitely. Understanding the difference helps you pick the right tool rather than defaulting to whatever is easiest to tap.

The clearest contrast is discipline. A personal loan has a fixed rate, a fixed payment and a definite payoff date, so you always know when the debt ends and exactly what it will cost. A card offers flexibility but tempts you to pay only the minimum, at which point interest compounds and a purchase can take years to clear. For a one-off, known expense — a medical bill, a home repair, consolidating balances — the fixed schedule of an installment loan usually wins. For ongoing or unpredictable spending, the reusable nature of a card or line of credit fits better.

Rates and costs differ too. Personal loans are commonly cheaper than card interest, which is why using one to consolidate high-rate balances can cut both the rate and the payoff time. But watch the fine print: many personal loans charge an origination fee taken out of the amount you receive, so you get less than you borrow while still repaying the full face value. That is why the fee-inclusive APR, not the headline rate, is the honest number for comparing offers — the calculator above solves for it so a fee is not hidden.

A few structural points round out the picture. Because a personal loan is delivered as a lump sum, you cannot re-borrow what you repay the way you can on a card; if you need more later, you apply again. Most personal loans allow penalty-free early payoff, so extra payments shorten the term and save interest — worth confirming before you sign. And a fixed installment payment reported on time can steady your credit profile, whereas a maxed-out revolving balance tends to weigh on it. Match the product to the need: a defined loan for a defined cost, and revolving credit for genuine flexibility.