Use this calculator to see what a personal loan will really cost before you apply. Enter the amount, rate, term and any origination fee. Results update as you type.
Estimates only. Assumes a fixed rate, equal monthly payments and a fee deducted from the loan proceeds.
How to use the results
- Monthly payment: make sure it fits your budget with room to spare. A common guideline is to keep total monthly debt payments well below 36% of gross income.
- Total interest: the price of borrowing. Try a shorter term to see how much it drops.
- Total cost (interest + fee): the number to compare across lenders that offer the same term.
- Cash you receive: if a fee is deducted, you’ll receive less than you borrow. If you need a specific amount in hand, increase the loan amount until this number covers it.
How APR changes the cost of a $10,000 loan
| APR | Term | Monthly payment | Total interest |
|---|---|---|---|
| 8.00% | 36 months | $313.36 | $1,281.09 |
| 15.00% | 36 months | $346.65 | $2,479.52 |
| 15.00% | 60 months | $237.90 | $4,273.96 |
| 25.00% | 36 months | $397.60 | $4,313.54 |
| 35.99% | 36 months | $457.98 | $6,487.32 |
Two lessons stand out. First, your rate matters enormously: the same loan costs five times as much interest at 35.99% as at 8%. Second, a longer term lowers your payment but can nearly double the interest you pay.
The formula behind the calculator
Fixed-rate installment loans use the standard amortization formula:
Payment = P × r ÷ (1 − (1 + r)−n)
- P = loan amount
- r = monthly interest rate (annual rate ÷ 12, as a decimal)
- n = number of monthly payments
Worked example: P = $10,000, annual rate 15% → r = 0.0125, n = 36. Payment = 10,000 × 0.0125 ÷ (1 − 1.0125−36) ≈ $346.65. Total repaid = $346.65 × 36 ≈ $12,479.52, so interest ≈ $2,479.52.
Origination fees: the hidden cost
An origination fee is typically deducted from your loan. With a 5% fee on $10,000, you receive $9,500 but repay $10,000 plus interest. That makes the effective cost higher than the interest rate suggests, which is exactly what APR captures. See APR vs interest rate for a side-by-side example.
Assumptions and limits
- Fixed rate and equal monthly payments for the full term
- Payments made on time; no late fees
- Fee deducted from proceeds (some lenders add it to the balance instead)
- Results are estimates; your lender’s Truth in Lending disclosure is the official figure
Next steps
- Paying off cards? Try the debt consolidation calculator.
- See what rate your credit might get: compare personal loans.
- Check rates safely: how to prequalify without hurting your credit.
Frequently asked questions
How is a personal loan payment calculated?
Fixed-rate loans use the amortization formula: payment = P × r ÷ (1 − (1 + r)−n), where P is the loan amount, r is the monthly rate (APR ÷ 12) and n is the number of months.
Should I enter the APR or the interest rate?
Enter the interest rate and the origination fee separately for the most accurate total cost. If you only know the APR, enter it with a 0% fee.
Is a lower monthly payment always better?
No. A longer term lowers the payment but increases total interest. Choose the shortest term with a payment you can comfortably afford.