Personal Loan Calculator
Calculate Your Monthly Payment
Your monthly payment for a personal loan will depend on the amount, term, and interest rate of the loan (which is highly dependent on your credit score). Use the inputs below to get a sense of what your monthly payment could end up being.
ENTER LOAN AMOUNT
SELECT LOAN TERM
ENTER INTEREST RATE or Credit Score
MONTHLY PAYMENT
PAYMENT SCHEDULE
MONTHLY PAYMENT BREAKDOWN
AMORTIZATION SCHEDULE BREAKDOWN
| Date | Principal + Interest = Payment | Total Interest Paid | Total Remaining Balance |
|---|---|---|---|
| 2025 | $2,416.48 | $1,223.38 | $13,639.86 |
| 2026 | $4,664.27 | $1,575.49 | $9,239.76 |
| 2027 | $5,414.07 | $825.68 | $3,239.76 |
| 2028 | $2,505.18 | $94.72 | $0.00 |
Where Can I Get a Personal Loan?
Banks, credit unions, and internet lenders are your options when looking for a personal loan. To assist you in making a decision, here is a brief summary of each type of loan provider:
Online Lenders: Lower interest rates may result from applying for a personal loan through an online lender. These lenders usually provide flexible repayment terms, low or no fees, and competitive annual percentage rates. Additionally, obtaining financing through a digital process is frequently the quickest and easiest option.
Banks: Compared to credit unions, traditional banks may have more stringent approval requirements and higher interest rates. Membership isn’t a problem, though. Existing customers may benefit from lower interest rates or greater loan amounts, particularly if they are from a nearby bank.
Credit Unions: Depending on where you live, work, study, or worship, credit unions provide services to members of particular communities. You must be a member in order to receive a loan, and you might also need to have a certain amount saved. However, they are more accommodating to applicants with low credit scores or little credit history and usually offer lower rates.
How to Calculate Payments for Your Personal Loan
To use the personal loan calculator, enter a few details about the loan:
- Loan amount: This is the total sum of money you plan to borrow from the lender.
- Loan term: The length of time you’ll have to fully repay the loan.
- Interest rate: The percentage charged by the lender for borrowing the money. If you’re unsure of your interest rate, you can estimate it using your credit score range.
After entering these loan details, a personal loan calculator will show you three essential figures: total interest, total repayment, and your monthly installment. These numbers help you assess and compare loan offers effectively.
- Total interest paid: The complete interest amount you’ll pay during the entire loan term. Borrowers with good credit scores usually pay less in interest than those with lower scores.
- Total paid: The full sum repaid to the lender, including both the loan principal and total interest. Note: this figure does not include any extra fees the lender might charge (explained further below).
- Monthly payment: The fixed amount you’ll owe each month throughout the loan term. Each payment includes both interest and principal, calculated according to an amortization schedule.
A longer loan term will result in a lower monthly payment and a higher total interest rate. A shorter loan term will result in a higher monthly payment but a lower total interest rate.
Assuming a $10,000 loan with 10% interest, the payment details vary based on the loan term you select as follows:
| Loan Term | Monthly Payment | Total Interest Paid | Total Amount Paid |
|---|---|---|---|
| 12 months | $879.16 | $549.91 | $10,549.91 |
| 24 months | $461.45 | $1,074.78 | $11,074.78 |
| 36 months | $322.67 | $1,616.19 | $11,616.19 |
| 48 months | $253.63 | $2,174.04 | $12,174.04 |
| 60 months | $212.47 | $2,748.23 | $12,748.23 |
In addition to interest, your lender may charge personal loan fees that may not be included in the personal loan calculator results. They might include:
Origination Fee: The lender will charge you this one-time amount to cover the cost of processing your loan. The amount typically ranges from 1% to 8% of the total loan amount, though it varies by lender. The fee is mostly determined by your credit history. You may receive less money than you anticipated because lenders may either add it to the loan balance or deduct it from your loan amount.
Late Fee: Depending on the details of your loan, your lender may impose a late fee if you fail to make a monthly payment. Frequent late payments raise the total cost of your loan and harm your credit score. You can stay on track by setting up automatic payments.
Prepayment Penalty: Since lenders forfeit anticipated interest, early loan repayment may result in a fee. Before completing your loan, always check the terms of repayment.
How Is the Interest Calculated on a Personal Loan?
Every month, your loan payment is divided into two key components:
- A portion that covers the interest charged by the lender
- A portion that reduces your remaining loan balance, known as the principal
Your monthly payment’s overall amount stays the same for the duration of the loan, but how it is divided between principal and interest varies. This occurs as a result of amortized loans using your current outstanding balance to calculate interest.
Since your loan balance is higher in the beginning, interest accounts for a larger portion of your payment. The interest component gets smaller as you keep making payments and your balance drops. This enables a greater portion of your payment to be applied to principal reduction. You can estimate the average and total interest costs over the course of your loan by using a personal loan calculator.
Here’s a sample amortization schedule for a 12-month, $1,000 loan with a 15% interest rate:
| Payment Month | Monthly Payment | Principal Paid | Interest Paid | Cumulative Interest | Remaining Loan Balance |
|---|---|---|---|---|---|
| 1 | $90.26 | $77.76 | $12.50 | $12.50 | $922.24 |
| 2 | $90.26 | $78.73 | $11.53 | $24.03 | $843.51 |
| 3 | $90.26 | $79.71 | $10.54 | $34.57 | $763.80 |
| 4 | $90.26 | $80.71 | $9.55 | $44.12 | $683.09 |
| 5 | $90.26 | $81.72 | $8.54 | $52.66 | $601.37 |
| 6 | $90.26 | $82.74 | $7.52 | $60.18 | $518.63 |
| 7 | $90.26 | $83.78 | $6.48 | $66.66 | $434.85 |
| 8 | $90.26 | $84.82 | $5.44 | $72.09 | $350.03 |
| 9 | $90.26 | $85.88 | $4.38 | $76.47 | $264.14 |
| 10 | $90.26 | $86.96 | $3.30 | $79.77 | $177.19 |
| 11 | $90.26 | $88.04 | $2.21 | $81.99 | $89.14 |
| 12 | $90.26 | $89.14 | $1.11 | $83.10 | $0.00 |
Tip
An easy way to multiply by a percentage is to multiply the two numbers (for example, $1,000 x 1.25) and then divide by 100. So, $1,000 x 1.25 = $1,250; then $1,250 ÷ 100 = $12.50.
What Is the Average Interest Rate on a Personal Loan?
When you use a personal loan calculator, the interest rates will be different for each loan. They will vary by state, lender, and other factors, including your:
- Credit score
- Credit history
- Income
- Debt-to-income (DTI) ratio
- Loan term
According to data from the Federal Reserve, the average interest rate for a 24-month personal loan was 10.32% as of June 2023. By contrast, according to the National Credit Union Administration, the average interest rate for a 36-month personal loan at banks was 10.75% in Q1 2023 and 10.02% at credit unions.
Depending on your credit score, personal loan interest rates can vary significantly. Strong credit is crucial for obtaining reasonable personal loan terms because borrowers with higher credit scores typically qualify for lower interest rates.
How Do You Calculate Payments on a Personal Loan?
To estimate your monthly payments, you don’t need to use an online personal loan calculator. Just divide the entire amount owed, principal and interest included, by the number of months left on your loan. For example, your monthly loan payment would be $83.33 ($1,000 ÷ 12 = $83.33) if the loan term was 12 months and your total repayment was $1,000.
Your monthly loan payments usually stay the same for the duration of the loan.
Divide the annual interest rate by 12 (months) and multiply the result by the current loan balance to determine the monthly interest component. For instance, the interest for the first month of a $1,000 12-month loan with a 15% annual interest rate would be $12.50 (1.25% of $1,000). The interest would be $11.53 in the second month.
If you ask for a deferment, your payment schedule may alter. You can temporarily stop making loan payments if you experience financial difficulties, such as losing your job, having health problems, or a national emergency.
Interest could still accrue during the deferment period, though. This implies that you may eventually owe more, which could result in higher monthly payments, a longer loan term, or both.
Get all the information from your lender before accepting any deferment. You can better plan your finances and avoid surprises by being aware of the deferment terms.
Why Use a Personal Loan Calculator
You can estimate your monthly payment, total interest, and total repayment amount for a particular loan with the help of personal loan calculator. After calculating the numbers, you can:
- Compare loan scenarios before making a decision. Experiment with different loan term lengths to understand how they impact your monthly payments and the total interest paid.
- Check if your monthly payment fits your budget. If it feels too high, try extending the loan term to reduce your monthly burden.
- Evaluate whether the total interest cost is worth it. If the interest seems excessive, consider shortening the loan term to save money overall.
If adjusting the loan term doesn’t provide a suitable loan offer, consider lowering your loan costs by:
- Reducing the loan amount you borrow
- Exploring offers from multiple lenders
- Boosting your credit score before applying
What Are Common Term Lengths for a Personal Loan?
Repayment terms for personal loans vary, usually from two to five years. Nonetheless, some lenders offer longer options; for eligible borrowers, personal loan terms can reach 15 years.
Who Has the Best Rates on Personal Loans?
Online lenders are usually at the forefront of finding the best personal loan rates. In terms of affordability, credit unions typically rank second, whereas traditional banks typically have higher interest rates. However, the rate you’ll get is heavily influenced by your credit history. Strong credit frequently enables borrowers to access advantageous terms from all kinds of lenders. However, it could be difficult for people with bad credit to get accepted by banks or credit unions.
Are there Penalties if I Pay Off My Loan Early?
Since early repayment lowers the lender’s anticipated interest earnings, some personal loans have a penalty fee. Before completing and signing your personal loan documents, always carefully read your loan agreement and ask your loan officer if there are any early payment penalties.
The Bottom Line
Shop around and compare rates, fees, and repayment terms from multiple lenders to find the best personal loan for your financial circumstances. Naturally, you should also estimate monthly payments and total expenses using Investopedia’s personal loan calculator.
6 thoughts on “Personal Loan Calculator”