Personal Loan Calculator
Estimate monthly personal loan payments, total interest, total repayment, loan cost, and savings from extra monthly payments.
Personal Loan Results
This calculator provides an estimate only. Actual personal loan costs can differ because of lender fees, APR rules, payment timing, prepayment rules, late fees, credit profile, insurance add-ons, and whether fees are deducted upfront or added to the balance.
Use this Personal Loan Calculator to estimate monthly payments, total interest, total repayment, origination fees, and potential savings from making extra monthly payments.
Important: The result is an estimate. Actual loan costs can differ because of lender fees, APR, payment timing, and the terms of your loan agreement.
Personal Loan Calculation Method
For a standard fixed-rate installment loan:
Monthly rate = annual interest rate ÷ 12 ÷ 100
Monthly payment = P × r × (1 + r)n ÷ [(1 + r)n − 1]
Where:
- P = loan principal
- r = monthly interest rate
- n = total number of monthly payments
Total repayment = monthly payment × number of payments
Total interest = total repayment − loan amount
If an origination fee is charged as a percentage:
Origination fee = loan amount × fee percentage ÷ 100
If the fee is deducted from the loan proceeds:
Amount received = loan amount − origination fee
Extra monthly payments can reduce the outstanding principal faster, which may shorten the payoff period and reduce total interest.
Example
Suppose you borrow $8,000 at 9% annual interest for 4 years, with a 3% origination fee.
Monthly rate = 9% ÷ 12 = 0.75%
Using the amortization formula:
Monthly payment ≈ $199.08
Total repayment ≈ $9,555.86
Total interest ≈ $1,555.86
The origination fee is:
$8,000 × 3% = $240
If the lender deducts the fee upfront:
Amount received = $8,000 − $240 = $7,760
Important Notes
- The interest rate and APR are not always the same. APR may include certain lender fees in addition to interest.
- Origination fees may be deducted from the amount you receive or handled differently by the lender.
- A longer loan term usually lowers the monthly payment but can increase total interest.
- Extra payments may reduce interest and payoff time, but check whether your lender has any prepayment restrictions or fees.
- Late fees, optional insurance, documentation fees, variable rates, and other charges are not automatically included.
- The calculator does not determine loan approval, credit eligibility, or the exact terms a lender will offer.