Personal Loan Calculator
Estimate a personal loan monthly payment, origination fee, cash proceeds, total interest, extra-payment savings, payoff date, and amortization schedule.
Estimate a personal loan payment, fees, total interest, and payoff options.
Personal loan details
Monthly payment: $806.68
- Amount financed
- $25,000.00
- Cash received
- $24,500.00
- Origination fee
- $500.00
- Total interest
- $4,040.50
Extra-payment impact
Enter an extra monthly payment to compare an earlier payoff.
- Payment with extra
- $806.68
- Interest saved
- $0.00
- Estimated payoff
- Jul 2029
- Total of scheduled payments
- $29,040.50
- Interest plus origination fee
- $4,540.50
- Scheduled payoff date
- Jul 2029
- Number of scheduled payments
- 36
Before comparing offers
- This estimate uses a fixed annual interest rate, monthly interest, and payments made on schedule.
- The origination fee is modeled using your financing choice. Lender APR disclosures can use additional fees and legally prescribed methods.
- Late fees, optional insurance, variable rates, prepayment penalties, and lender-specific daily-interest or rounding rules are not included.
Balance payoff comparison
No extra monthly payment is entered, so both projected balance paths are the same.
| Year | Scheduled | With extra |
|---|---|---|
| 1 | $17,481 | $17,481 |
| 2 | $9,176 | $9,176 |
| 3 | $0 | $0 |
Interest-rate comparison
Scheduled payment and total interest at five fixed rates
| Rate | Payment | Total interest |
|---|---|---|
| 8.00% | $783 | $3,203 |
| 9.00% | $795 | $3,620 |
| 10.00% | $807 | $4,041 |
| 11.00% | $818 | $4,465 |
| 12.00% | $830 | $4,893 |
Personal loan amortization schedule
Choose annual scheduled totals or the complete month-by-month schedule using the entered extra payment.
| Year | Interest | Principal | Ending balance | Balance with extra |
|---|---|---|---|---|
| 1 | $2,161.60 | $7,518.56 | $17,481.44 | $17,481.44 |
| 2 | $1,374.31 | $8,305.85 | $9,175.59 | $9,175.59 |
| 3 | $504.59 | $9,175.59 | $0.00 | $0.00 |
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What does the Personal Loan Calculator calculate?
The Personal Loan Calculator converts the values you enter into a structured estimate using the formulas and assumptions documented on this page. Use the result to compare scenarios, review the calculation details, and identify sensitive inputs. Check the guide and formula sections before using the estimate for an important decision.
Personal Loan Calculator at a Glance
- Estimates the fixed monthly payment for a personal installment loan.
- Separates the requested amount, origination fee, amount financed, and cash proceeds.
- Compares the scheduled payoff with an optional extra monthly principal payment.
- Shows total interest, fee-inclusive cost, payoff dates, rate sensitivity, and amortization tables.
History
Installment lending organizes one amount of borrowed money into a defined series of payments. Printed payment tables once helped borrowers and lenders compare those schedules. A modern personal loan calculator performs the same core amortization work while also showing fees, cash received, payment dates, and the effect of paying principal early.
The Consumer Financial Protection Bureau describes a personal installment loan as a closed-end loan in which money is generally provided at the beginning and repaid in set amounts over a specific period. That structure is the starting point for this calculator's fixed-rate model.
What Is This Personal Loan Calculator?
This calculator estimates the payment and borrowing cost for a fixed-rate personal installment loan using the values you enter. It models the requested amount, term, note rate, origination fee, fee treatment, start date, and optional extra monthly principal. Review the Loan Calculator assumptions before relying on this result for decisions.
The result is more than a payment quote. It shows how much cash you receive, how much is financed, the projected interest and fee cost, and a payment-by-payment schedule. It does not determine approval or reproduce a lender-disclosed APR.
Who Should Use It?
Use it when comparing fixed-rate personal loan offers for debt consolidation, a planned purchase, an unexpected expense, or another personal purpose. It is useful for borrowers who need to distinguish a low payment from a low total cost, especially when offers use different terms or origination-fee structures.
It can also help current borrowers test an extra-payment plan. Confirm the contract's prepayment terms and how the servicer applies additional funds before relying on the projected savings.
What Problems Does It Solve?
For “What Problems Does It Solve?,” the Loan Calculator organizes the relevant inputs, applies the documented method, and shows a result that can be compared across scenarios. The points below identify the specific considerations and assumptions users should review before relying on the estimate.
- Payment uncertainty: convert an amount, fixed rate, and term into an estimated monthly payment.
- Fee confusion: see whether an origination fee reduces proceeds or increases the financed principal.
- Offer comparisons: compare cash received, monthly payment, total interest, and fee-inclusive cost on a consistent basis.
- Term tradeoffs: understand why a longer term can lower the payment while extending interest costs.
- Extra-payment questions: estimate months and interest saved when additional money reaches principal.
- Amortization confusion: follow interest, principal, and remaining balance month by month.
Key Benefits
The calculator keeps the parts of the loan visible. A $25,000 request with a 2% fee creates a $500 fee, but the outcome depends on the fee treatment. A deducted fee leaves the modeled principal at $25,000 and provides $24,500 in proceeds. A financed fee provides $25,000 in proceeds but increases the modeled principal to $25,500.
It also provides a reproducible schedule rather than relying only on a headline payment. You can inspect monthly interest, principal, ending balance, payoff timing, and total cost, then compare the estimate with the lender's written disclosures.
Personal Loan Terms and Definitions
- Requested amount
- The amount of loan proceeds requested before a deducted origination fee.
- Financed principal
- The starting balance used in the payment formula. It includes the fee only when the fee is financed.
- Net proceeds
- The cash modeled as available to the borrower after a deducted fee.
- Note rate
- The annual interest percentage applied to the outstanding principal in this fixed-rate model.
- APR
- An annualized borrowing-cost measure that can include the interest rate and certain fees. Use the lender-disclosed APR for offer comparisons.
- Origination fee
- An upfront lender charge entered as a percentage of the requested amount.
- Loan term
- The number of months over which scheduled payments repay the balance.
- Amortization
- The process of dividing payments between interest and principal until the balance reaches zero.
- Extra principal
- Money paid above the scheduled amount and credited directly to the balance in this model.
When to Use It
Use the calculator before applying to set a payment range, after receiving offers to compare structures, and before accepting an offer to check the effect of its fee. Revisit it when considering an extra monthly payment or checking a lender's amortization schedule.
Do not use it as an approval forecast, legal disclosure, or substitute for the loan agreement. Lenders can consider credit history, income, existing debts, requested amount, term, and other underwriting information. If a payment may be difficult, contact the lender promptly rather than relying on a new calculator scenario.
How Personal Loan Payments Are Calculated
The calculator first determines the financed principal. It then converts the annual note rate to a monthly rate and applies the standard fixed-payment formula: Use realistic inputs and review the Loan Calculator assumptions before relying on this result for decisions.
M is the monthly payment, P is financed principal, i is the annual rate divided by 1,200, and n is the number of monthly payments.
Each month's interest equals the beginning balance multiplied by the monthly rate. The remaining scheduled payment reduces principal. Amounts are posted to cents, and the final principal payment is capped at the remaining balance. Review the personal loan formula page for the complete fee, amortization, and extra-payment equations.
Common Personal Loan Calculator Mistakes
- Entering APR in a field designed for the note rate.
- Comparing two payments without keeping the amount and term consistent.
- Ignoring whether a fee is deducted from proceeds or financed into principal.
- Choosing a longer term only for its lower payment without reviewing total interest.
- Assuming every lender applies extra funds to principal in the same way.
- Treating the estimated rate-sensitivity chart as a lender quote.
Frequently Asked Questions
How is a personal loan payment calculated?
A fixed personal loan payment is based on the financed principal, monthly interest rate, and number of monthly payments. Each payment first covers accrued interest and then reduces principal. Review the Loan Calculator assumptions before relying on this result for decisions.
Does an origination fee reduce how much cash I receive?
It can. If the fee is deducted, cash received equals the requested amount minus the fee. If the fee is financed, the full requested amount is received but the fee increases the balance and the interest paid. Review the Loan Calculator assumptions before relying on this result for decisions.
Is the interest rate the same as APR?
Not necessarily. The interest rate is the cost applied to principal. APR is a broader annualized borrowing-cost measure that can include interest and certain fees. Compare lender-disclosed APRs with one another. Review the Loan Calculator assumptions before relying on this result for decisions.
Can extra payments reduce personal loan interest?
Yes, when the lender applies extra funds to principal and the agreement has no limiting prepayment charge. Reducing principal sooner generally shortens payoff and reduces later interest. Use realistic inputs and review the Loan Calculator assumptions before relying on this result for decisions.
What is a personal loan amortization schedule?
It is a payment-by-payment table showing beginning balance, payment, interest, principal, and ending balance until the loan reaches zero. For a useful Loan Calculator result, use realistic inputs, compare relevant scenarios, and review the stated assumptions before making a decision.
Are most personal loans secured?
Many personal installment loans are unsecured, but some are secured by collateral. Loan structure, qualification, rate, and fees vary by lender and borrower. For a useful Loan Calculator result, use realistic inputs, compare relevant scenarios, and review the stated assumptions before making a decision.
Does this calculator determine approval?
No. It estimates payments and costs from values you enter. Lenders can consider credit history, income, existing debts, requested amount, term, and other underwriting factors. Use realistic inputs and review the Loan Calculator assumptions before relying on this result for decisions.
What costs are excluded?
Late fees, optional insurance, variable-rate changes, prepayment penalties, and lender-specific daily-interest or rounding methods are excluded unless represented by an input. For a useful Loan Calculator result, use realistic inputs, compare relevant scenarios, and review the stated assumptions before making a decision.
One Fun Fact About This Calculator
A 36-month fixed-rate loan can have the same scheduled payment every month while the inside of that payment changes 36 times. Interest is highest when the balance is largest, so principal generally claims a larger share of later payments.
Conclusion
A useful personal loan comparison looks beyond the advertised payment. Enter the same requested amount and term for each offer, model the fee exactly as quoted, and compare the lender-disclosed APR, cash proceeds, payment, total interest, and other contract terms together.
Use the step-by-step personal loan guide to gather inputs and read the results, then confirm every final number in the lender's disclosures.
Personal Loan Calculator Disclaimer
This calculator provides an educational estimate, not a loan offer, approval decision, lender disclosure, or financial advice. Actual costs depend on the contract, payment timing, fees, borrower qualifications, and lender calculation methods.