Personal loans offer fixed rates, fixed payments, and a clear payoff date — making them one of the most straightforward borrowing options. Rates range from 6% for excellent credit to 36% for poor credit, with average terms of 3-5 years. A $15,000 personal loan at 10% for 4 years costs $380/month with $2,252 in total interest. The most common use is debt consolidation — replacing multiple high-interest credit card balances with a single lower-rate payment. This calculator shows your monthly payment, total interest, and amortization for any personal loan scenario.
Personal Loan Calculator
Calculate monthly payments, total interest, and payoff schedule.
Personal Loan Calculator Comparison
Monthly payments at various rates
| Rate | Monthly Payment | Total Interest | Total Paid |
|---|---|---|---|
| 5% | $283 | $1,984 | $16,984 |
| 5.5% | $287 | $2,191 | $17,191 |
| 6% | $290 | $2,400 | $17,400 |
| 6.5% | $293 | $2,610 | $17,610 |
| 7% | $297 | $2,821 | $17,821 |
| 7.5% | $301 | $3,034 | $18,034 |
How to Use This Calculator
- Enter the loan amount you need to borrow
- Set the interest rate from your pre-qualification offer
- Choose the loan term in years — shorter terms mean higher payments but less total interest
- View your fixed monthly payment, total interest cost, and total amount repaid
- Compare multiple offers side-by-side to find the best combination of rate and term
How It Works
This calculator uses the standard amortization formula to compute your personal loan calculator payment.
The basic rule:
- Monthly Payment = P × [r(1+r)^n] / [(1+r)^n – 1]
- r = annual interest rate ÷ 12
- n = loan term × 12 (total monthly payments)
- Total Interest = (Monthly Payment × n) – Principal
Results are estimates. Actual payments may vary based on fees, insurance, and other factors.
Tips & Considerations
- For debt consolidation, the personal loan rate must be lower than the weighted average of your current debts for it to make sense.
- Origination fees of 1-8% are common and often deducted from your loan proceeds. A $10K loan with a 5% fee means you only receive $9,500.
- Personal loans have no collateral, which is why rates are higher than mortgages or auto loans. But it also means nothing gets repossessed if you default.
- Pre-qualification uses a soft credit pull that does not affect your score. Always check rates at 3-5 lenders before committing.
Frequently Asked Questions
What can I use a personal loan for?
Personal loans can be used for almost anything: debt consolidation, home improvement, medical bills, or major purchases. They are unsecured, meaning no collateral is required, but rates are typically higher than secured loans.
How do personal loan rates compare to credit cards?
Personal loan rates typically range from 6-36% APR depending on credit. This is often lower than credit card rates (15-25%+), making personal loans a good option for consolidating high-interest credit card debt.
Does applying for a personal loan hurt my credit?
A soft pull for pre-qualification does not affect your score. The formal application triggers a hard pull, which may lower your score by 5-10 points temporarily. The new account can actually help your credit mix long-term.