Personal Loan Calculator

A personal loan calculator estimates the fixed monthly payment on an unsecured installment loan. You provide the amount, the APR, and the term in months, and it returns the payment using the same amortization formula every bank uses. Personal loans are typically used for debt consolidation, medical bills, home projects, or major one-time expenses.

Unlike a credit card, a personal loan has a fixed rate, fixed payment, and fixed end date — you know exactly when you'll be debt-free. Most personal loans are unsecured (no collateral), which is why rates run higher than mortgages or auto loans but usually well below credit cards.

Suppose you borrow $10,000 at 10% APR for 36 months:

• Monthly rate: 10% ÷ 12 = 0.008333
• Number of payments: 36
• Monthly payment: $322.67
• Total paid: $11,616
• Total interest: $1,616

Compare that to carrying the same $10,000 on a credit card at 22% APR paying just the minimum — you'd pay over $13,000 in interest and take more than 25 years to clear it. The personal loan is dramatically cheaper if you can qualify.

• Consolidating credit-card debt — calculate the payoff cost at the loan's lower rate to see real savings.
• Funding a home repair — compare a personal loan to using a HELOC or putting it on a card.
• Major medical bills — see if a 3- or 5-year payment fits your budget.
• Wedding, moving, or one-time large expense — model whether the monthly payment is sustainable.
• Comparing lender offers — plug in each APR and term to compare apples-to-apples.

• Comparing interest rate instead of APR. Origination fees can add 1–8% to the effective cost; APR captures both.
• Stretching the term to lower the payment. A 7-year personal loan often costs 60–80% more in interest than a 3-year version of the same amount.
• Consolidating debt without changing habits. Many borrowers run up the credit cards again after consolidating, ending up with both balances.
• Borrowing more than you need. Lenders push higher amounts because they earn more interest. Take only what you need.
• Missing prepayment penalty fine print. Most reputable personal loans have no prepayment penalty, but verify before signing.