See your monthly payment and total interest, factor in the origination fee most lenders charge, and find out the true cost before you borrow.
This is an estimate. Your actual APR, fees, and terms depend on the lender and your credit. Some lenders deduct the origination fee from your loan proceeds, so you receive less than the loan amount while repaying the full balance. This tool is for educational purposes only and is not financial advice.
A personal loan is an installment loan: you borrow a fixed amount and repay it in equal monthly payments over a set term. Each payment covers the interest charged that month on the remaining balance, and the rest reduces the principal. Because the balance shrinks every month, the interest portion falls and the principal portion grows as you go.
The calculator solves for the fixed payment that pays the balance to exactly zero over your term, then adds up the interest. A longer term lowers the monthly payment but raises total interest; a shorter term does the opposite.
Many personal loan lenders charge an origination fee — often 1% to 8% of the loan — which is usually deducted from the money you receive. If you borrow $15,000 with a 5% fee, you repay the full $15,000 but only get $14,250 in hand.
That fee is why a loan's APR is higher than its stated interest rate: APR folds the fee into the cost. When comparing offers, compare APRs, not just rates, and look at the cash you'll actually receive versus the total you'll repay.
Lenders price personal loans mainly on credit score, income and existing debt, loan amount, and term. A strong credit profile can mean single-digit APRs; weaker credit can push rates toward the legal ceiling. The same borrower can see very different offers from different lenders, which is why shopping around pays.
Most online lenders let you check your rate with a soft credit inquiry that doesn't affect your score, so you can compare real offers before committing to a hard pull.
The most common smart use of a personal loan is consolidating high-interest credit card balances. If your cards charge 22% and a loan offers 12%, moving the balance can cut your interest cost and give you one fixed payment with a clear payoff date instead of revolving minimums.
It only works if the loan's APR — including the origination fee — is genuinely lower than what you're paying now, and if you avoid running the cards back up. Compare your card's payoff cost first using the credit card calculator before consolidating.
Personal loans are usually unsecured, so they don't put an asset like your home or car at risk, and the fixed payment makes budgeting predictable. The trade-offs are the origination fee, rates that can be high for weaker credit, and prepayment behavior — most reputable lenders allow penalty-free early payoff, but confirm before you sign.
Borrow only what you need: a larger loan or longer term lowers the monthly payment but quietly increases the total you repay.
It's based on the loan amount, APR, and number of months. Each month interest accrues on the balance and the rest of your fixed payment reduces principal. The calculator finds the payment that clears the balance to zero over the term.
It's an upfront charge, often 1%–8% of the loan, that many lenders deduct from your proceeds. You repay the full loan amount but receive less, which raises the effective cost — that's why it's reflected in the APR.
It can be, if the loan's APR including fees is lower than your card rates and you stop adding new card debt. You get one fixed payment and a set payoff date. Compare the all-in cost both ways before deciding.
Pre-qualifying usually uses a soft inquiry that doesn't affect your score. A hard inquiry, which can lower it slightly, typically happens only when you formally apply and accept an offer.
Most reputable lenders allow penalty-free early payoff, which saves interest. A few charge a prepayment penalty, so check the loan agreement before signing.