Personal Loan Calculator
Estimate the monthly payment, total interest, and payoff on a personal loan. Enter the amount, rate, and term to see a full year-by-year breakdown.
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | $4,416 | $1,562 | $10,584 |
| 2 | $4,976 | $1,002 | $5,608 |
| 3 | $5,608 | $371 | $0 |
Assumes a fixed-rate, fully amortizing loan with no origination fee. APR shown by lenders may include fees.
How to use this calculator
Enter the loan amount, the interest rate (APR), and the term in months. You'll see your fixed monthly payment, the total interest over the life of the loan, the total repaid, and a year-by-year breakdown of principal and interest.
How personal loans work
Personal loans are typically unsecured, fixed-rate, and fully amortizing — meaning equal monthly payments fully pay off the loan by the end of the term. Rates depend heavily on your credit, so the better your credit, the lower the rate and the less you pay in interest.
Worked example
A $15,000 loan at 12% over 36 months costs about $498/month, with roughly $2,900 in total interest. Shortening the term to 24 months raises the payment but cuts the interest substantially.
The formula
Payment = P · [ r(1 + r)n ] / [ (1 + r)n − 1 ], where r is the monthly rate and n the number of payments.
Frequently asked questions
How are personal loan payments calculated?
A personal loan is fully amortizing: you pay a fixed amount each month that covers interest on the remaining balance plus some principal. Early payments are more interest; later payments are more principal.
What's the difference between interest rate and APR?
The interest rate is the cost of borrowing the principal. APR also includes certain fees (like origination fees), so it's usually a bit higher and is the better number for comparing loan offers.
Does paying off a personal loan early save money?
Usually yes — paying extra reduces the balance, so less interest accrues. Check that your lender doesn't charge a prepayment penalty; most reputable personal loans don't.
What term should I choose?
Shorter terms mean higher monthly payments but far less total interest. Longer terms lower the payment but cost more overall. Pick the shortest term whose payment fits your budget.