PERSONAL LOAN
About this calculator
This personal loan calculator computes the monthly payment on an unsecured fixed-rate personal loan. Enter the loan amount, the APR (annual percentage rate) the lender quoted you, and the term in months. The calculator returns the monthly principal and interest payment plus the total interest you'll pay over the life of the loan. Personal loan APRs in 2026 typically range from 7% (excellent credit, top lenders) to 35% (subprime). Most personal loans run 24 to 84 months.
How to use this calculator
Enter the loan amount you're borrowing. Set the APR (annual percentage rate) the lender quoted — for accurate comparison across lenders, always use APR, which includes most fees, not the headline interest rate alone. Pick the loan term in months (12 to 84 typical for personal loans).
The calculator returns the monthly principal and interest payment plus total paid and total interest over the life of the loan. Compare across multiple lenders to spot the cheapest TOTAL cost — sometimes a higher monthly payment saves thousands in total interest over the loan term.
Worked example
For a $15,000 personal loan at 12% APR for 60 months:
Monthly payment: $334. Total paid over 5 years: $20,025. Total interest: $5,025.
Same loan at 36 months: $498/month, $17,937 total paid, $2,937 total interest. Saves $2,088 in interest by paying $164/month more for 36 months instead of 60.
Same loan at 84 months: $265/month, $22,224 total paid, $7,224 total interest. The lower payment costs an extra $2,200 in interest vs the 60-month term.
For a $5,000 short-term loan at 18% APR over 24 months: $250/month, $5,995 total, $995 interest. Reasonable for emergency expenses.
For a $30,000 debt consolidation at 9% APR over 60 months: $623/month, $37,374 total, $7,374 interest. If consolidating credit card debt at 22% APR, the savings vs paying minimums on cards can be $5,000-$10,000+.
Common mistakes & waste factors
Comparing interest rate instead of APR. APR includes most fees (origination, processing); interest rate alone doesn't. A 7% interest loan with 5% origination fee has a higher effective APR than a 9% loan with no fees.
Ignoring origination fees. Some lenders deduct 1-8% from the funded amount upfront. A "$10,000 loan" with 5% origination means you receive $9,500 but owe $10,000 plus interest. Calculate based on actual received amount.
Choosing long terms to lower the payment. The longer the term, the more total interest. Going from 36 to 84 months on a $15K loan can double total interest paid.
Using personal loans for items that should be financed differently. Cars belong on auto loans (lower APR, secured by vehicle). Home renovations belong on HELOC or home equity loans (lower APR, tax-deductible interest). Personal loans are best for debt consolidation or genuine emergencies.
Rules of thumb
Personal loan APRs (2026): 7-9% excellent credit, 12-18% average, 25-35% subprime.
Terms: 12-84 months typical. Sweet spot is 36-48 months for total cost minimization.
Origination fees: 0% (top lenders like SoFi, Marcus, LightStream) to 8% (subprime).
Use APR not interest rate when comparing — APR includes origination fees.
Debt consolidation case: only worthwhile if new APR < your current weighted-average debt APR.
Avoid prepayment penalties — most modern personal loans allow free prepayment but read the terms.
A $10,000 loan at 12% over 60 months costs $3,300 in interest. Same loan at 18% costs $5,200. APR matters more than headline marketing.