Personal Loan Calculator
Estimate your monthly payment on an unsecured personal loan.
Your Details
Principal vs. Interest
Share of total amount paid over the loan term
- Principal$12.0K
- Interest$2.9K
Payment by Interest Rate
How your monthly payment changes with rate
Principal vs. Interest by Year
How your payments are split each year
Year-by-Year Schedule
Full breakdown of principal, interest, and balance
| Year | Principal | Interest | Balance |
|---|---|---|---|
| Year 1 | $2,527 | $1,195 | $9,473 |
| Year 2 | $2,819 | $903 | $6,654 |
| Year 3 | $3,145 | $577 | $3,509 |
| Year 4 | $3,509 | $213 | $0 |
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How It Works
- Enter the loan amount you're financing.
- Enter the interest rate and loan term.
- Press Calculate to see your payment and full schedule.
- Use Reset any time to start over from the defaults.
Formula Used
P = loan amount, r = monthly interest rate, n = number of monthly payments.
Good to Know
- • A shorter term means a higher payment but less total interest.
- • Your actual rate depends on credit history and lender.
- • Paying extra toward principal shortens the payoff time.
Important Notes
- • Rates shown are for comparison, not a live quote.
- • Fees are not included in this estimate.
- • Consult a lender for a formal offer.
Secured vs. Unsecured Loans
Personal loans are usually unsecured, meaning there's no collateral backing them the way a car or house secures an auto loan or mortgage. Because the lender takes on more risk, rates tend to run higher than secured loans, and the rate offered depends heavily on credit score, income, and existing debt.
Common Uses and What to Watch For
Personal loans are often used for debt consolidation, home repairs, or unexpected expenses. When consolidating higher-APR debt like credit cards, a personal loan can lower the blended interest rate — but it only helps if the freed-up credit isn't immediately run back up. Some lenders also charge an origination fee, taken off the top of the loan amount, which is worth factoring into the true cost of borrowing.
Making Sense of the Terms
- Unsecured loan — a loan with no collateral backing it; the lender relies solely on your promise to repay.
- Origination fee — an upfront charge, often 1-8% of the loan amount, deducted from the funds you receive.
- Debt consolidation — using a new loan to pay off several existing higher-rate debts, leaving one payment instead of several.
Example Scenario: Consolidating $12,000 of Debt
A borrower with $12,000 spread across credit cards averaging 24% APR takes a $12,000 personal loan at 11% APR over 4 years instead:
M = 12,000 × 0.009167 ÷ (1 − 1.009167⁻⁴⁸) ≈ $310/month
Total interest over 4 years ≈ $2,880
Compared to carrying that same balance on 24% APR cards — which could easily cost $6,000+ in interest if paid down slowly — consolidating into a fixed-rate personal loan at a lower rate can meaningfully cut the total interest paid, provided the freed-up card limits aren't immediately spent again.
Rate by Credit Tier Table
| Credit Tier | Typical APR Range |
|---|---|
| Excellent (720+) | 7-12% |
| Good (690-719) | 12-18% |
| Fair (630-689) | 18-28% |
| Poor (below 630) | 28-36% |
Watch Out For These When Taking a Personal Loan
- Not comparing the origination fee — a lower rate with a high fee can cost more overall.
- Consolidating without changing spending habits — freed-up card limits can lead to new debt.
- Choosing a longer term purely for a lower payment — increases total interest paid.