Personal Loan Calculator
Use this personal loan calculator to find your fixed monthly payment, the total interest and the APR once an origination fee is counted. Many lenders take the fee out of the loan before paying you, so a $10,000 loan can put less than $10,000 in your account. The calculator shows what you actually receive and what the loan really costs from start to finish.
Updated
Results
- Total interest
- Origination fee
- Total insurance
- Total cost of the loanAll payments minus the money you receive
- Total of payments
- Money you receiveLoan amount minus a deducted fee
Results are estimates. See the methodology below.
How to use the calculator
- Loan amount: the amount on the loan agreement, before any fee is taken out.
- Interest rate: the yearly rate the lender quotes, not the APR.
- Term (months): personal loans are usually quoted in months, such as 36 or 60.
- Origination fee: choose a percentage of the loan or a flat dollar amount, and enter 0 if there is no fee.
- Advanced options: tick the box if the fee is added to your balance instead of deducted, and enter any monthly charge for credit insurance you would pay with each installment.
The fee and insurance totals appear only when those fields are above zero.
How the calculator works
The monthly rate is the annual interest rate ÷ 12, and the payment uses the standard fixed-installment formula:
payment = P × i ÷ (1 − (1 + i)^−n)
Here P is the amount borrowed (plus the fee if it is financed), i is the monthly rate and n is the number of months. A monthly insurance charge is added on top.
The APR follows the actuarial method that Regulation Z, the rule implementing the Truth in Lending Act, sets out: the calculator finds the monthly rate at which your payments are worth exactly the money you receive, then multiplies it by 12. A deducted fee lowers what you receive but not what you repay, so it pushes the APR above the interest rate.
- Money you receive = loan amount − fee, or the full amount if the fee is financed.
- Total cost of the loan = all payments − money you receive. It covers interest, the fee and any insurance.
Late fees, early payoff and variable rates are not modeled.
Worked examples
1. $10,000 for 36 months at 11.99% with a 5% fee deducted
The fee is $500, so you receive $9,500. The payment is $332.10 a month and you repay $11,955.43. Interest is $1,955.43, and the total cost including the fee is $2,455.43. The APR is 15.59%, well above the 11.99% interest rate.
2. Same loan, different terms
| Term | Monthly payment | Total cost | APR |
|---|---|---|---|
| 24 months | $470.69 | $1,796.51 | 17.22% |
| 36 months | $332.10 | $2,455.43 | 15.59% |
| 60 months | $222.39 | $3,843.64 | 14.27% |
A longer term lowers the APR because the fee is spread over more months, yet you pay more dollars overall. Compare offers with the same term.
3. A higher rate with no fee
Another lender offers $10,000 for 36 months at 13.99% with no fee. The payment is higher at $341.73, but you receive the full $10,000 and the total cost is $2,302.20, which is $153.23 less than example 1. At 14.99% with no fee, the total cost would be $2,477.76, slightly more than example 1.
How to read your results
Use the APR to compare loans with the same term: it rolls interest and upfront fees into one yearly rate. Use the total cost to see the dollars involved. If you need a set amount in hand and the fee is deducted, borrow a little more: with a 5% fee at 11.99% for 36 months, a $10,526.32 loan nets $10,000 and costs $349.57 a month. Rates quoted before you apply can change after the lender reviews your credit, so treat early quotes as estimates.
Frequently asked questions
What is the difference between the interest rate and the APR?
The interest rate is the cost of borrowing the money itself. The APR adds origination charges and other fees charged when the loan is made, expressed as a yearly rate. Lenders must disclose the APR under the Truth in Lending Act, which makes it the better number for comparing offers.
What is an origination fee?
It's an upfront charge for processing the loan, usually a percentage of the amount borrowed. On your Truth in Lending disclosure, a fee withheld from the loan is a prepaid finance charge: the amount financed shown there is the credit you actually get after it is subtracted.
Is it better to have the fee deducted or added to the loan?
With the fee added to the balance, the $10,000 loan from example 1 costs $348.70 a month, you receive the full $10,000 and the total cost rises to $2,553.20 because you pay interest on the fee too. The APR is 15.42%, close to the 15.59% of the deducted version. Choose based on the cash you need, not the label.
Does the APR here include credit insurance?
Yes. Any monthly insurance you enter is part of the payment and of the APR the calculator shows, so you see its full effect. A lender's official APR may treat optional insurance differently, so compare the result with the disclosure you receive.
Why is the lender's APR slightly different?
Lenders use exact dates, and the first period may be longer or shorter than a month. Regulation Z treats an APR on a regular loan as accurate if it is within 1/8 of a percentage point of the exact figure. A bigger gap usually means a fee you haven't entered.
Can I pay off a personal loan early?
Usually yes, and paying early cuts the interest you owe. Check whether your loan agreement includes a prepayment penalty; the Truth in Lending disclosure must state whether one applies.
Sources
This calculator gives estimates for educational purposes only and is not financial advice. Your actual rate, fees and payment depend on the lender's offer and your credit; rely on the lender's Truth in Lending disclosure.