Personal Loan Calculator

A personal loan is an unsecured installment loan with a fixed rate and fixed monthly payment. This calculator shows your monthly payment and total interest cost, plus a rate comparison table so you can see how much your credit score affects the total cost.

1. Enter the loan amount. Personal loans typically range from $1,000 to $100,000.
2. Enter the interest rate. Rates vary from about 6% for excellent credit to 36% for fair credit.
3. Enter the loan term in months. Common terms are 24, 36, 48, and 60 months.
4. Enter the origination fee if the lender charges one. This is deducted from your loan proceeds and raises your effective APR.

Use the rate comparison table to see how much you save by qualifying for a lower rate, which is a strong incentive to improve your credit score before applying.

Monthly payment formula:

M = P × [r(1+r)^n] / [(1+r)^n - 1]

Where P = loan amount, r = monthly rate (annual rate / 12), n = number of months.

Example: $15,000 at 12% for 48 months. r = 0.01. M = $395.01/month. Total interest = $3,960.

Impact of rate on total cost:

The same $15,000 loan for 48 months at different rates:

• 8%: $366/month, $2,558 total interest
• 12%: $395/month, $3,960 total interest
• 18%: $441/month, $6,168 total interest
• 24%: $489/month, $8,473 total interest

Improving your credit score from fair (18% rate) to good (12% rate) saves $2,208 on a $15,000 loan.

Effective APR with origination fee: The APR is calculated by solving for the discount rate that equates the present value of all monthly payments to the net loan proceeds (loan amount minus fee). A $500 origination fee on a $15,000 loan at 12% raises the effective APR to about 14.6%.