How the Personal Loan vs Credit Card Calculator works
Compare a personal loan with credit card payoff. 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 vs credit card calculator when deciding whether to keep paying a card balance or refinance it with a personal loan. It is useful for comparing interest cost, payoff time and monthly payment discipline.
Formula
Savings = estimated credit card interest - estimated personal loan interest
- Balance is the amount being repaid under either option.
- Credit card APR and payment estimate the card payoff path.
- Personal loan rate and term estimate the installment loan payment and interest.
Worked example
For a $12,000 balance at 21.99% APR with a $400 card payment, compared with a 10.5% personal loan over 3 years, the calculator estimates which option may cost less.
Common mistakes
- Moving debt to a loan and then adding new card balances.
- Ignoring personal loan fees or prepayment rules.
- Choosing the lower monthly payment without checking total interest.
FAQs
Why might a personal loan help?
A lower fixed rate and fixed payoff term can reduce interest and create a clear repayment schedule.
Can a credit card still be better?
It can be if you can repay quickly, have a promotional APR or avoid loan fees.
Does this affect credit score?
Applications, utilization and account behavior can affect credit. This calculator only compares repayment estimates.