Personal Loan Calculator
Calculate monthly payments, total interest, and see a complete amortization schedule for your personal loan. Compare different loan terms to find the best option for your budget.
Total amount you need to borrow
Annual Percentage Rate (APR)
Number of months to repay the loan
Accurate Calculations
Industry-standard loan formula provides precise monthly payments, total interest, and payment schedules.
Compare Loan Terms
See how different loan lengths affect your monthly payment and total interest paid over time.
100% Private
All calculations happen in your browser. Your loan information is never sent to any server.
How Personal Loan Payments Work
Monthly Payment Formula
Personal loan payments are calculated using the standard amortization formula: M = P × [r(1+r)^n] / [(1+r)^n - 1], where M is the monthly payment, P is the principal (loan amount), r is the monthly interest rate (APR ÷ 12 ÷ 100), and n is the number of monthly payments.
This formula ensures you pay the same amount each month while gradually paying down both principal and interest. Early payments go mostly toward interest, while later payments pay down more principal.
Example Calculation
Scenario: $15,000 personal loan at 10% APR for 48 months
- • Loan Amount: $15,000
- • Interest Rate: 10.00% APR
- • Loan Term: 48 months (4 years)
- • Monthly Payment: $380.44
- • Total Interest: $3,261.12
- • Total Paid: $18,261.12
Choosing the Right Loan Term
Shorter Terms (12-36 months): Higher monthly payments but significantly less total interest. Best if you can afford higher payments and want to minimize borrowing costs.
Medium Terms (48-60 months): Balanced monthly payments and moderate total interest. Most popular option for personal loans.
Longer Terms (72-84 months): Lower monthly payments but much higher total interest. Only consider if you need the lowest possible monthly payment and understand the higher total cost.
Tips for Personal Loans
- • Shop around: Compare rates from multiple lenders to find the best APR for your credit profile
- • Check your credit: Higher credit scores qualify for lower interest rates, potentially saving thousands
- • Consider shorter terms: If you can afford it, choose the shortest term possible to minimize total interest
- • Avoid unnecessary fees: Look for loans with no origination fees or prepayment penalties
- • Budget carefully: Ensure the monthly payment fits comfortably in your budget before borrowing
Frequently Asked Questions
How is the monthly payment calculated?
Monthly payment is calculated using the standard loan formula: M = P × [r(1+r)^n] / [(1+r)^n - 1], where M is the monthly payment, P is the principal (loan amount), r is the monthly interest rate (APR/12/100), and n is the number of monthly payments. This formula ensures you pay the same amount each month while paying off both principal and interest.
What is an amortization schedule?
An amortization schedule shows how each monthly payment is split between principal and interest over the life of the loan. Early payments go mostly toward interest, while later payments pay down more principal. This schedule helps you see exactly how your loan balance decreases over time.
Should I choose a shorter or longer loan term?
Shorter loan terms (12-36 months) have higher monthly payments but significantly lower total interest. Longer terms (60-84 months) have lower monthly payments but cost more in interest over time. Choose based on your budget and financial goals. Use the comparison feature to see how different terms affect your total costs.
What is a good APR for a personal loan?
Personal loan APRs typically range from 6% to 36%, depending on your credit score, income, and lender. Excellent credit (720+) can get rates under 10%, good credit (680-719) around 10-20%, and fair credit (640-679) around 20-30%. Shop around and compare offers to find the best rate for your situation.
How much can I afford to borrow?
A general rule is that your total monthly debt payments (including the new loan) shouldn't exceed 35-40% of your gross monthly income. Use this calculator to see what monthly payment different loan amounts would require, then ensure it fits comfortably in your budget.
Is my loan information private?
Yes, absolutely! All calculations happen entirely in your browser. Your loan information is never sent to any server, ensuring complete privacy and security.