How does the loan calculator work?

It uses the standard amortization formula: M = P × [r(1+r)^n] / [(1+r)^n − 1], where P is principal, r is the monthly interest rate, and n is the number of payments.

What is the difference between APR and interest rate?

The interest rate is the base cost of borrowing. APR (Annual Percentage Rate) includes the interest rate plus fees, giving a more complete picture of the loan cost. Always compare APRs, not just interest rates.

Should I choose a shorter or longer loan term?

Shorter terms mean higher monthly payments but less total interest paid. Longer terms lower your monthly payment but cost more overall. Choose based on your monthly budget and how much total interest you want to pay.

Can I pay off a loan early?

Most personal loans allow early payoff without penalty, but some have prepayment penalties. Check your loan agreement. Paying extra each month reduces your principal faster and saves significantly on interest.

Loan Calculator

Calculate your monthly payment, total interest, and payoff schedule for any personal or installment loan.

Loan Amount ($)

Annual Interest Rate (%)

Loan Term

Your Loan Estimate

Monthly Payment—

Total Interest Paid—

Total Amount Paid—

Payoff Date—

How to Use the Loan Calculator

This loan calculator helps you estimate the monthly payment on any personal, installment, or fixed-rate loan. Enter your loan amount, annual interest rate, and repayment term to instantly see your payment and total cost of borrowing.

Personal Loan vs. Other Loan Types

Personal loans are unsecured installment loans — meaning you don't pledge collateral. They're used for debt consolidation, home improvements, medical bills, and major purchases. Interest rates range from about 6% (excellent credit) to 36% (poor credit). The average personal loan rate in 2025 is around 11%.

Secured loans (like auto loans or mortgages) use the asset as collateral, allowing lenders to offer lower rates. This calculator works for both secured and unsecured loan types.

The Loan Payment Formula

Monthly payments are calculated using the amortization formula: M = P × r(1+r)ⁿ / [(1+r)ⁿ−1], where P = principal, r = monthly interest rate (APR ÷ 12), and n = number of payments. For example: a $15,000 loan at 10.5% for 36 months yields a monthly payment of $487.

How Loan Term Affects Total Cost

The longer your loan term, the lower your monthly payment — but the more total interest you pay. On a $15,000 loan at 10.5%: a 36-month term costs $2,532 total in interest; a 60-month term costs $4,219 total interest. Choosing the longer term saves $163/month but costs $1,687 more overall.

Tips to Get the Best Loan Rate

Check your credit score before applying — rates are tier-based on credit
Compare APRs from at least 3 lenders (banks, credit unions, online lenders)
Credit unions often offer rates 1–3% lower than banks
Consider a shorter term if you can afford the higher payment — you'll save significantly on interest
Avoid payday loans and loans with prepayment penalties

Loan Calculator — Frequently Asked Questions

Personal loan rates range from about 6% for excellent credit (750+) to 36% for poor credit. The national average is around 11–12%. Credit unions typically offer the lowest rates — check with your local credit union before applying at a bank or online lender.

The interest rate is the base cost of borrowing. APR (Annual Percentage Rate) includes the interest rate plus origination fees and other charges, giving a more complete picture of the loan's true cost. Always compare APRs — not just stated interest rates — when shopping for loans.

Shorter terms mean higher monthly payments but less total interest paid. Longer terms lower your monthly payment but increase the total amount you pay. Choose the shortest term where the monthly payment comfortably fits your budget.

Most personal loans allow early payoff without penalty, but some charge prepayment fees. Check your loan agreement. Paying extra each month is one of the best ways to reduce your total interest cost — even an extra $50/month can shave months off a 3-year loan.

Most lenders require a minimum credit score of 580–620. For the best rates (under 10%), you typically need a score of 720+. If your score is below 620, consider a secured loan, a co-signer, or spending 6 months improving your credit before applying.