Personal Loan Calculator
Calculate your monthly personal loan payment, total interest paid, and full repayment cost instantly. Includes a complete month-by-month amortization schedule.
How to Use
- 1Enter the loan amount you want to borrow and the annual interest rate offered by your lender. You can find this on your loan offer letter or lender website.
- 2Select your loan term from the dropdown. Shorter terms mean higher monthly payments but less total interest. Longer terms lower your monthly payment but cost more overall.
- 3Enter any origination fee if your lender charges one. This is a one-time upfront fee added to your total cost. Enter 0 if none applies.
- 4Click Calculate to see your monthly payment, full interest breakdown, payoff date, and complete month-by-month amortization schedule. Download the free PDF report to keep.
Example Calculation
Scenario: Loan Amount $10,000 | Annual Interest Rate 8.5% | Term 36 months | Origination Fee $0
- Monthly Payment: $315.68
- Total Amount Paid: $11,364.31
- Total Interest Paid: $1,364.31
- Interest as % of Loan: 13.64%
- First Month Interest: $70.83
- First Month Principal: $244.84
- Final Balance: $0.00
"In Month 1, your $315.68 payment consists of $70.83 interest and $244.84 principal. By Month 36, the interest drops to just $2.22, with $313.46 going toward the remaining balance."
Frequently Asked Questions
How is a personal loan monthly payment calculated?
Your monthly payment uses the standard loan amortization formula. It ensures equal payments every month while gradually shifting each payment from mostly interest at the start to mostly principal at the end.
What is the difference between interest rate and APR?
The interest rate is the base cost of borrowing. APR (Annual Percentage Rate) includes the interest rate plus any additional fees such as origination fees, making it the true annual cost of the loan.
Should I choose a shorter or longer loan term?
A shorter term means higher monthly payments but significantly less total interest. A longer term lowers your monthly payment making it more manageable but you pay more in total interest over time.
What is an origination fee on a personal loan?
An origination fee is a one-time upfront charge by some lenders to process your loan. It is typically 1% to 8% of the loan amount and is either deducted from your loan proceeds or added to your balance.
What is an amortization schedule?
An amortization schedule is a complete month-by-month table showing exactly how much of each payment goes toward principal and interest along with the remaining loan balance after each payment.
Disclaimer: This calculator provides estimates for informational purposes only. TheCalcTool is not a licensed financial legal or tax advisor. Loan calculations are estimates based on the inputs provided assuming a fixed interest rate and equal monthly payments. Actual loan terms may vary. Please consult a qualified financial professional before making any financial decisions.