How the Personal Loan Calculator works
Estimate personal loan payments and interest. Adjust the inputs above, then use the calculate button to generate a fresh estimate based on the numbers you entered.
The result is designed to give you a quick planning number, plus a short breakdown of the major figures behind it. You can reset the form at any time and try a different scenario.
When to use this calculator
Use this personal loan calculator to estimate monthly payments and borrowing cost before taking out an unsecured loan. It is useful for comparing loan amounts, rates, terms and upfront fees.
Formula
Monthly payment = financed amount x monthly rate / (1 - (1 + monthly rate)^(-number of payments))
- Financed amount is the loan amount plus any fees included in the loan.
- Monthly rate is the annual interest rate divided by 12.
- Number of payments is the loan term in years multiplied by 12.
Worked example
For a $15,000 personal loan at 10.5% over 4 years with $250 in fees, the calculator estimates the monthly payment, total repayment and interest cost.
Common mistakes
- Comparing offers by monthly payment only.
- Ignoring origination fees or setup fees.
- Choosing a longer term without checking total interest.
FAQs
Can fees change the real loan cost?
Yes. Fees increase the amount you effectively pay to borrow, even when the advertised rate looks attractive.
Is a shorter term better?
A shorter term usually costs less interest but requires a higher monthly payment.
Does this include variable rates?
No. It assumes the rate entered stays the same for the repayment term.