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Finance Calc Kit
Loans

Personal Loan Calculator

Calculate your personal loan monthly payments, total interest, origination fees, and true APR.

Loan Details

$
%
%

Estimated monthly payment

$327.34

True APR

13.1%

Net loan payout

$9,700.00

Total interest

$1,784.24

Total cost of loan

$11,784.24

Payment breakdown

  • Principal$10,000.0084.9%
  • Interest$1,784.2415.1%

Loan Term Comparison

2 Years (24 mos)

$466.03

Interest: $1,184.72

APR: 14.1%

3 Years (36 mos)

$327.34

Interest: $1,784.24

APR: 13.1%

5 Years (60 mos)

$217.37

Interest: $3,042.20

APR: 12.3%

How This Is Calculated

M=P×r×(1+r)n(1+r)n−1M = P \times r \times \frac{(1 + r)^{n}}{(1 + r)^{n} - 1}

• Monthly payment: Standard amortizing loan formula on $10,000.00 principal

• Origination fee: 3.0% = $300.00

• Net payout: $9,700.00 received after the fee

• True APR: Solved when net proceeds equal the present value of all monthly payments

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How Personal Loan Payments Work

A personal loan is typically an unsecured installment loan with a fixed interest rate and equal monthly payments until the balance reaches zero. Lenders may also charge an origination fee deducted from loan proceeds, which raises the true cost above the stated interest rate.

This calculator estimates the monthly payment, total interest, net cash received, and true APR. For general amortizing loans with multiple payment frequencies, use the payment calculator or the EMI calculator. To compare how upfront fees change the effective borrowing rate, pair results with the APR calculator. If you are checking whether a new payment fits your budget, review your debt ratios with the debt-to-income calculator. For fixed-rate education debt without origination fees, estimate payments with the student loan calculator.

Monthly Payment Formula

Fixed-rate personal loans use the standard amortizing payment formula:

M=P×r×(1+r)n(1+r)n−1M = P \times r \times \frac{(1 + r)^{n}}{(1 + r)^{n} - 1}

M is the monthly payment, P is the loan principal, r is the monthly interest rate, and n is the number of months. When the rate is zero, the payment is simply principal divided by months.

Origination Fees and True APR

Many personal lenders charge an origination fee expressed as a percentage of the loan amount. If the fee is deducted from proceeds, you repay the full principal but receive less cash upfront. Under the Truth in Lending Act, lenders must disclose an APR that reflects finance charges including these fees.

The calculator solves for APR by finding the rate where the present value of all monthly payments equals net loan proceeds after the origination fee.

Worked Example

A $10,000 personal loan at 10.99% for 36 months with a 3% origination fee:

  • Origination fee: $300
  • Net payout: $9,700
  • Estimated monthly payment: about $327
  • True APR: above the 10.99% nominal rate because of the upfront fee

Shorter terms raise the monthly payment but usually reduce total interest. The term comparison cards show how 2-year, 3-year, and 5-year schedules change both payment size and total cost.

Tips Before You Borrow

  • Compare APR, not just rate: Two offers with the same interest rate can have different fees and very different true costs.
  • Check prepayment rules: Some lenders charge prepayment penalties or use precomputed interest.
  • Borrow only what you need: A larger principal increases both the monthly payment and total interest even at the same rate.

Frequently asked questions

Why is APR higher than the stated interest rate?
APR includes finance charges such as origination fees spread across the loan term. When fees reduce the cash you receive, the effective cost of borrowing rises above the nominal rate used to calculate the payment.
Are personal loan interest rates fixed or variable?
Most unsecured personal loans in the United States use fixed rates and fixed payments. Variable-rate personal loans exist but are less common. Always confirm the rate type in your loan agreement.
Does this calculator include insurance or late fees?
No. It models principal, interest, and a percentage origination fee only. Optional credit insurance, late fees, and returned payment charges are not included unless you add them manually.
How do I compare a 3-year and 5-year personal loan?
Use the term comparison cards in the calculator. A longer term lowers the monthly payment but increases total interest paid over the life of the loan.
Is a personal loan payment the same as an EMI?
Yes for monthly fixed-rate loans. EMI is the common term outside the United States for an equal monthly installment on an amortizing loan. The underlying formula is the same.

Resources and references

The formulas and methods in this calculator were checked against these independent sources.