Personal Loan Calculator
Personal loans are simple on the surface: one fixed payment, one fixed term. Origination fees, however, quietly raise the real cost. This calculator shows both the payment and the APR you are actually paying.
Loan offer details
The advertised rate on the offer, before fees.
Commonly 1% to 8% of the loan, deducted from what you receive.
What you actually receive
Origination fees are usually deducted from the proceeds, so a $15,000 loan with a 5.00% fee deposits about $14,250 in your account while you repay the full $15,000 plus interest.
Debt consolidation usually only works when the new rate beats the weighted average of the debts you are replacing, and when you stop using the cards you paid off. Otherwise the balance returns and the loan payment is still there.
Amortization schedule
| Payment # | Payment | Interest | Principal | Balance |
|---|---|---|---|---|
| 1 | $349.02 | $175.00 | $174.02 | $14,826 |
| 2 | $349.02 | $172.97 | $176.05 | $14,650 |
| 3 | $349.02 | $170.92 | $178.11 | $14,472 |
| 4 | $349.02 | $168.84 | $180.19 | $14,292 |
| 5 | $349.02 | $166.74 | $182.29 | $14,109 |
| 6 | $349.02 | $164.61 | $184.41 | $13,925 |
| 7 | $349.02 | $162.46 | $186.57 | $13,738 |
| 8 | $349.02 | $160.28 | $188.74 | $13,550 |
| 9 | $349.02 | $158.08 | $190.94 | $13,359 |
| 10 | $349.02 | $155.85 | $193.17 | $13,165 |
| 11 | $349.02 | $153.60 | $195.43 | $12,970 |
| 12 | $349.02 | $151.32 | $197.71 | $12,772 |
The stated rate is not the APR
The interest rate applies to the balance. The APR also folds in upfront fees, and that is the number you should compare across offers. A 12 percent loan with a 6 percent origination fee can behave more like a 17 percent loan.
What personal loans are good for
Debt consolidation is the most common use, and it works when the new rate is meaningfully lower than the weighted average of the debts you are replacing, and when you stop using the paid-off cards.
Personal loans are unsecured, so there is no collateral at risk. That also means rates are higher than auto or mortgage loans for the same credit profile.
Prepayment penalties and the myth of the free lunch
Most reputable personal loans have no prepayment penalty, so paying early is pure savings. Always confirm this in the terms. Some lenders charge a fee or claw back a portion of the interest.
Frequently asked questions
What credit score do I need for a personal loan?
Many lenders advertise starting at 600, but the best rates go to borrowers above 720. Below 640 expect APRs in the high teens or twenties.
How is APR different from the interest rate?
APR includes the interest rate plus upfront fees and points, expressed as an annualized cost. It is the only apples-to-apples way to compare loan offers.
Can I pay off a personal loan early?
Usually yes, and most mainstream lenders charge no penalty. Check the agreement for a prepayment penalty clause before signing.
Is a personal loan better than a balance transfer card?
A 0 percent balance transfer is cheaper if you can clear the balance within the promotional window, typically 12 to 21 months. A personal loan is better when you need longer, because the rate stays fixed after the promo period ends.
This calculator is an educational tool and does not constitute financial, tax or legal advice. Results are estimates based on the inputs and assumptions described above. Verify important figures with a qualified professional or the relevant government agency before acting on them.