Personal Loan Calculator
Work out the true cost of a personal loan. Enter the amount, APR, and term to see your monthly payment, total interest, and total cost.
Personal loans look simple until the interest adds up. This calculator shows the fixed monthly payment for any unsecured loan amount, rate, and term — plus exactly how much interest you'll pay over the life of the loan, so you can compare offers apples to apples.
How to use this calculator
- Enter the loan amount you want to borrow.
- Enter the APR from the lender's offer.
- Choose the loan term in years.
- Click Calculate to see the monthly payment, total interest, and total cost.
- Repeat with different terms or rates to compare offers.
The formula
Monthly payment = P × r(1+r)^n ÷ ((1+r)^n − 1), where P is the principal, r the monthly rate (APR ÷ 12), and n the number of monthly payments.
Worked example
Borrowing $10,000 at 8% APR for 5 years gives a monthly payment of $202.76. Over 60 payments you'd pay $2,165.60 in interest, for a total cost of $12,165.60.
Frequently Asked Questions
How is the monthly payment calculated?
With the standard amortizing-loan formula: payment = P × r(1+r)^n ÷ ((1+r)^n − 1), where P is the loan amount, r is the monthly interest rate (APR ÷ 12), and n is the number of payments. Every payment covers that month's interest first; the rest reduces the principal.
Why is the total interest so high on a small rate difference?
Interest compounds on the outstanding balance every month for the whole term. On a $10,000 loan over 5 years, 8% APR costs $2,165.60 in interest while 12% costs $3,346.40 — four percentage points add more than $1,100. Always compare the APR, not just the monthly payment.
Does a longer term always cost more?
The monthly payment drops, but total interest rises because you pay interest for more months. A $10,000 loan at 8% costs $2,165.60 in interest over 5 years but $4,559.60 over 10 years — more than double. Choose the shortest term whose payment fits your budget.
What affects the APR I'll actually get?
Credit score is the biggest factor, followed by income, existing debts, and loan term — shorter terms usually get lower rates. The rate you enter here should be the APR from a real offer, which by law includes most lender fees.
Are there fees this calculator doesn't include?
Yes — origination fees (often 1–8% of the loan, sometimes deducted from the payout), late fees, and prepayment penalties. An origination fee effectively raises your cost, so compare the APR, not the interest rate, and ask the lender for the total of all fees before signing.