Personal Loan Calculator
Estimate your monthly payment, total interest paid, and payoff date for any personal loan.
Results
Monthly Payment
$498.21
Total Interest
$2,936
Total Cost
$17,936
Number of Payments
36
Payoff Date
November 2029
How Personal Loan Payments Are Calculated
A personal loan is an unsecured installment loan — you borrow a fixed amount, repay it in equal monthly payments over a set term, and pay interest on the outstanding balance. Your monthly payment depends on three factors: the principal (how much you borrow), the APR (annual percentage rate, which includes both the interest rate and any lender fees), and the loan term (how many months you have to repay).
The standard formula converts your annual rate to a monthly rate (APR ÷ 12), then calculates a fixed payment that covers accruing interest and chips away at the principal until the balance reaches zero. Early payments are mostly interest; later payments are mostly principal — this is called an amortizing loan. On a $15,000 loan at 12% APR over 36 months, for example, your monthly payment works out to about $498. You'll pay roughly $2,940 in total interest, making the true cost of the loan $17,940.
Choosing a shorter term reduces the total interest you pay but raises your monthly payment. Choosing a longer term lowers the monthly payment but costs significantly more in interest over time. For a $15,000 loan at 12%: a 24-month term saves about $900 in interest versus a 36-month term, but increases your monthly payment by around $175. Use the calculator above to model both scenarios before signing.
Personal loan APRs in 2026 typically range from 7% for borrowers with excellent credit (750+ FICO) to 36% for those with poor credit or limited credit history. Even a few percentage points make a large difference on longer terms: at $20,000 over 60 months, dropping from 18% APR to 10% APR saves over $4,800 in interest. If your credit score is below 670, it's worth spending a few months paying down existing debt before applying, as a higher score can qualify you for a much lower rate and save hundreds or thousands of dollars.
Frequently Asked Questions
What is a good APR for a personal loan?
A good personal loan APR is generally below 10–12%. Borrowers with excellent credit (750+ FICO) often qualify for rates in the 7–10% range from banks and credit unions. Rates between 12–20% are average for good-to-fair credit. Rates above 24% are costly and should only be considered if you have no lower-rate alternatives — at that level, a balance-transfer credit card or a credit union loan may be cheaper.
Does getting a personal loan hurt my credit score?
Applying for a personal loan triggers a hard inquiry, which typically lowers your credit score by 2–5 points for up to 12 months. However, if you make all payments on time, a personal loan can improve your score long-term by diversifying your credit mix and building a positive payment history. The short-term dip from a single inquiry is generally small and temporary.
Can I pay off a personal loan early?
Most personal loans allow early payoff, but some lenders charge a prepayment penalty — typically 1–5% of the remaining balance or a few months' worth of interest. Check your loan agreement before making extra payments. If there is no prepayment penalty, paying extra toward principal each month can save significant interest and shorten your payoff timeline substantially.
How does a personal loan differ from a credit card?
A personal loan gives you a lump sum at a fixed rate and term, with a set payoff date. A credit card is revolving credit: you can borrow, repay, and borrow again, but the balance and minimum payments fluctuate. For large one-time expenses like home improvement or debt consolidation, a personal loan usually offers a lower APR (especially for good credit) and a defined payoff schedule, making it easier to budget and cheaper over time than carrying a credit card balance.