Personal Loan Calculator
See what a personal loan really costs before you sign. Enter the amount, APR, and term to get your fixed monthly payment, total interest, payoff date, and the true cost once an origination fee is folded in. Optional monthly add-ons and extra payments show how the numbers shift.
Formula
Worked example
Borrow 15,000 at 11.5% APR over 5 years with a 5% (750) fee deducted from the loan: i = 0.115/12, n = 60, M is about 329.89/month, total interest about 4,793. You receive 14,250 but repay 19,793, so the real APR is roughly 13.4%.
How a personal loan is amortized
A personal loan is an amortizing loan: you repay it in equal fixed monthly installments that each cover the interest accrued that month plus a slice of the principal. Early on, most of each payment goes to interest because the balance is large; as the balance shrinks, more of each payment chips away at principal. The standard amortization formula sets the payment so the balance reaches exactly zero on the final installment, the same math used for a mortgage or auto loan. Add a few extra dollars a month and the loan clears sooner, because every extra dollar goes straight to principal.
Origination fees and the real APR
Most personal loans carry an origination fee, typically 1% to 8% of the amount borrowed. It can be deducted from the money you receive, financed into the balance, or paid upfront out of pocket. Either way it raises your true cost of borrowing above the quoted rate. This calculator solves the real APR, the single annual rate that equates the cash you actually receive with the payments you actually make, by finding the internal rate of return on those cash flows. A loan with a low headline rate but a fat fee can easily cost more than one with a higher rate and no fee, and the real APR is what exposes that.
Term, monthly add-ons, and what drives the cost
Two levers control what a loan costs: the rate and the term. A higher rate raises the interest portion of every payment, while a longer term lowers the monthly payment but stretches interest over more months, often dramatically increasing the total. Set the term in years and months for offers like 3 years 6 months. If the lender bundles a monthly charge such as payment-protection insurance, add it as a monthly add-on so it shows up in your total out of pocket. Always weigh a comfortable monthly payment against the total cost, because the two pull in opposite directions.
Reading the cost split and payoff date
The donut breaks your total cost into the principal you finance, the interest you pay to borrow it, and any origination fee. When interest and fee form a small slice, the loan is cheap relative to what you receive; when they rival or exceed the principal, the loan is expensive and usually signals a high rate, a long term, or both. The payoff date and the year-by-year schedule show exactly when the balance hits zero, which moves earlier if you make extra payments. Use this split to sanity-check an offer before you commit.
Total interest on a 15,000 loan by term and APR
| APR | 3 years | 5 years | 7 years |
|---|---|---|---|
| 7% | 1,674 | 2,821 | 4,017 |
| 11.5% | 2,807 | 4,793 | 6,907 |
| 18% | 4,522 | 7,854 | 11,482 |
Approximate total interest paid over the life of the loan, before any origination fee, rounded to the nearest dollar.
Frequently asked questions
How is my personal loan payment calculated?
It uses the standard amortization formula. The payment is set so that equal monthly installments cover all interest and repay the full balance by the end of the term. Each payment covers that month’s interest first, and the remainder reduces the principal. If a fee is financed, the payment is calculated on the larger balance.
What is the real APR and why is it higher than the quoted rate?
The quoted rate is the cost of borrowing the principal. The real APR also folds in the origination fee, because that fee means you either receive less cash or repay a larger balance. We solve it as the internal rate of return on the actual cash flows, which is the fairest way to compare two offers side by side.
How does an origination fee change my loan?
A fee deducted from the loan reduces the cash you receive while you still repay the full amount. A financed fee is added to the balance, so you pay interest on it too. A fee paid upfront comes straight out of pocket. Each option is supported here, and each raises your real APR above the quoted rate.
Should I choose a shorter or longer term?
A shorter term means higher monthly payments but far less total interest, since you clear the balance faster. A longer term eases the monthly budget but costs more overall. Pick the shortest term whose payment you can comfortably afford, or add an extra monthly payment to a longer term to get the best of both.