Personal Loan Calculator
Calculate monthly payments, total interest, and total cost for your personal loan.
Loan Summary
Monthly Payment
$473.51
36mo / 8.5% APR
Total Interest
$2,046.47
13.6% of loan
Total Cost
$17,046.47
APR
8.50%
Payment Breakdown
Principal vs Interest
Remaining Balance
Amortization Schedule
| # | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | $473.51 | $367.26$367.26 | $106.25$106.25 | $14,632.74$14,632.74 |
| 2 | $473.51 | $369.86$369.86 | $103.65$103.65 | $14,262.87$14,262.87 |
| 3 | $473.51 | $372.48$372.48 | $101.03$101.03 | $13,890.39$13,890.39 |
| 4 | $473.51 | $375.12$375.12 | $98.39$98.39 | $13,515.27$13,515.27 |
| 5 | $473.51 | $377.78$377.78 | $95.73$95.73 | $13,137.49$13,137.49 |
| 6 | $473.51 | $380.46$380.46 | $93.06$93.06 | $12,757.03$12,757.03 |
| 7 | $473.51 | $383.15$383.15 | $90.36$90.36 | $12,373.88$12,373.88 |
| 8 | $473.51 | $385.86$385.86 | $87.65$87.65 | $11,988.01$11,988.01 |
| 9 | $473.51 | $388.60$388.60 | $84.92$84.92 | $11,599.42$11,599.42 |
| 10 | $473.51 | $391.35$391.35 | $82.16$82.16 | $11,208.07$11,208.07 |
| 11 | $473.51 | $394.12$394.12 | $79.39$79.39 | $10,813.94$10,813.94 |
| 12 | $473.51 | $396.91$396.91 | $76.60$76.60 | $10,417.03$10,417.03 |
How Does a Personal Loan Calculator Work?
A personal loan calculator uses the standard loan amortization formula to determine your fixed monthly payment based on three inputs: the loan amount (principal), the annual interest rate (APR), and the loan term in months.
The formula works by distributing both principal and interest across equal monthly payments. In the early months, a larger portion of each payment goes toward interest. As the principal balance decreases, more of each payment is applied to the principal. This process is called amortization, and the table below the calculator shows exactly how each payment is split.
Personal loans are typically unsecured, meaning they do not require collateral like a house or car. Because of this, lenders rely more heavily on your creditworthiness when setting the interest rate. Borrowers with excellent credit (750+) can often qualify for rates below 8%, while those with fair or poor credit may see rates between 15% and 36%.
Use this calculator to compare different scenarios. Try adjusting the loan term to see how a shorter repayment period reduces total interest, or experiment with different interest rates to understand the impact on your monthly budget. The amortization schedule and payment charts give you a complete picture of your loan over time.
Frequently Asked Questions
How is the monthly payment on a personal loan calculated?
The monthly payment is calculated using the standard amortization formula: M = P * [r(1+r)^n] / [(1+r)^n - 1], where P is the loan principal, r is the monthly interest rate (annual rate divided by 12), and n is the total number of monthly payments. This formula ensures each payment covers both interest and principal so the loan is fully repaid by the end of the term.
What is the difference between APR and interest rate?
The interest rate is the cost of borrowing the principal, expressed as a percentage. APR (annual percentage rate) includes the interest rate plus origination fees and other lender charges spread across the loan term. APR is always equal to or higher than the interest rate and gives a more accurate picture of the true cost. When comparing personal loan offers, always compare APR, not just the interest rate.
How much will a $50,000 personal loan cost per month?
A $50,000 personal loan at 10% APR for 60 months costs about $1,062 per month, with total interest of roughly $13,742. At 7% APR over 60 months it drops to about $990/month with $9,400 in interest. Use the calculator above to model exact payments for your rate and term — even a 1-2% rate difference adds up to thousands over the life of the loan.
What factors affect personal loan interest rates?
Several factors influence your rate: credit score (higher scores get lower rates), debt-to-income ratio, loan amount, loan term, employment history, and whether you apply with a co-signer. Rates typically range from about 6% for excellent credit to 36% for poor credit. Shopping around and comparing offers from multiple lenders can help you secure a better rate.
Should I choose a shorter or longer loan term?
A shorter term means higher monthly payments but significantly less total interest paid. A longer term lowers your monthly payment but increases the total cost of the loan. For example, a $15,000 loan at 8.5% costs about $1,380 in interest over 24 months versus $3,564 over 60 months. Choose a term that balances affordable payments with minimizing total interest.
What is an unsecured personal loan?
An unsecured personal loan does not require collateral such as a house or car. Approval and rate depend entirely on your creditworthiness — credit score, income, and existing debt. Most personal loans from banks, credit unions, and online lenders are unsecured. Because the lender has no asset to seize on default, rates are higher than secured loans like mortgages or auto loans.