How it works
A personal loan amortises like a mortgage but over a shorter, fixed term: the same payment every month, split between interest and principal, balance declining to zero on a fixed date. The engine computes the level payment from the amount, APR and term, runs the full schedule, and reports total interest. Personal loan rates vary enormously by credit profile — from under 9% for excellent credit to 30%+ for subprime — which is why the same $20,000 loan costs between $2,000 and $13,000 in interest depending on the rate. The extra-payment field shows the accelerated path: adding even $50 a month to a 4-year loan typically saves months and hundreds of dollars. Before borrowing, compare the payment against what you would actually send each month — the tool's schedule column makes the arithmetic of the whole loan visible in one screen. Every field in this calculator exists for a reason. Enter Loan amount, Interest rate, Loan term, Extra monthly payment, Monthly payment, All inputs stay in your browser. Adjust one field at a time to see which lever moves the answer most — the formula on this page lets you verify every step against the defaults shown in the worked example.
Formula
M = P x r(1+r)^n / ((1+r)^n - 1)
Tips
- Check the APR, not the 'interest rate' — origination fees hide in the APR gap.
- Compare against a balance-transfer card or margin on existing card debt before signing a 15%+ loan.
- Prepay any time there is no prepayment penalty — most personal loans allow it.
- The longest term minimizes the payment but maximizes total interest; keep terms short where cash flow allows.
Frequently asked questions
- How is a personal loan different from a credit card?
- A personal loan is a fixed amount, fixed rate, fixed term — the payment is the same every month and the loan ends on a known date. A credit card is revolving: minimum payments stretch for decades and the rate can float. Consolidating card debt into a personal loan swaps an open-ended debt for a finite one at (usually) a lower rate.
- What determines my personal loan rate?
- Credit score, income, debt-to-income ratio and the loan amount and term. Excellent credit (740+) sees APRs near 8-12%; fair credit often sees 20-30%. Checking with multiple lenders in a short window counts as one hard pull — compare several quotes.
- Is there a prepayment penalty on personal loans?
- Most personal loans have none — paying off early just stops the interest. Read the fine print before signing; a few lenders still charge a small fee, typically 1-2% of the remaining balance.
- What is a good interest rate for a personal loan right now?
- For excellent credit, single-digit APRs are available; mid-teens is average; above 25% is expensive enough to question the loan. Compare the APR including fees, not the headline rate, across at least three lenders.