CalcnioFREE
Membership Log in

Personal Loan Calculator

Find the monthly payment on a personal loan and see what it really costs once the origination fee is counted, as a dollar total and as a true APR.

–

Save this calculation and come back to it any time. Members only — $5 every 3 months, ad-free.

Become a member

How to use the personal loan calculator

  1. Enter the loan amount you are approved for.
  2. Enter the interest rate from the offer.
  3. Enter the loan term in months. Personal loans usually run 24 to 84 months.
  4. Enter the origination fee as a percentage, or leave it at 0 if there is none.
  5. Choose how the fee is charged: taken from the payout (you receive less cash) or added to the loan (you owe more).
  6. Read the monthly payment, the cash you receive, the total cost and the true APR.

How the payment and APR are calculated

The payment is standard amortization on the balance you owe:

Payment M = B × i ÷ (1 − (1 + i)^−n) True APR 12 × j, where Cash received = M × (1 − (1 + j)^−n) ÷ j B = balance owed, i = interest rate ÷ 12, n = months Fee taken from payout: B = amount, cash received = amount − fee Fee added to the loan: B = amount + fee, cash received = amount

The true APR is the monthly rate j at which your payments are worth exactly the cash you got, times 12. With no fee it equals the interest rate. A fee means you repay the same stream of payments on less money, so the APR rises. The calculator finds j by bisection, narrowing the rate until the two sides match.

Worked example

The defaults are $15,000 at 11% for 36 months with a 5% fee taken from the payout:

  • Fee: 5% × $15,000 = $750, so you receive $14,250
  • Monthly rate: 0.11 ÷ 12 = 0.0091667, and (1.0091667)^36 = 1.38888
  • Payment: 15,000 × 0.0091667 × 1.38888 ÷ 0.38888 = $491.08
  • Total of 36 payments: $17,678.91, so the interest is $2,678.91
  • Total cost: $2,678.91 interest + $750 fee = $3,428.91
  • True APR: the rate at which 36 payments of $491.08 are worth $14,250 today is 14.58%

If the fee is added to the loan instead, you owe $15,750, the payment rises to $515.63, you receive the full $15,000, and the true APR is 14.41%.

How much the fee adds to the APR

The same 11% loan of $15,000 with the fee taken from the payout:

Origination fee APR over 36 months APR over 60 months
0% 11.00% 11.00%
3% 13.12% 12.34%
5% 14.58% 13.26%
8% 16.86% 14.70%

A fee hurts more on a short loan, because the one-time charge is spread over fewer months. It also hurts more if you pay the loan off early: repay the 36-month default loan after 12 months and the 5% fee pushes your effective rate to about 17.3%.

Getting the amount you need

If the fee comes out of the payout and you need a specific sum, say $15,000 to pay off a credit card, borrow the target divided by (1 − fee). For $15,000 with a 5% fee, that is 15,000 ÷ 0.95 = $15,789.47. To compare a personal loan with the cards it would replace, use the debt consolidation calculator.

Frequently asked questions

Is APR the same as the interest rate on a personal loan?

Only when there is no fee. The interest rate sets your payment; the APR also counts the origination fee, so it shows the full yearly cost. Compare offers by APR, and check the total cost in dollars too.

Should the fee be taken from the payout or added to the loan?

Lenders usually decide this, not you. Taking it from the payout means you borrow less but receive less; adding it means you get the full amount but pay interest on the fee. In the example the APR is a little lower when the fee is added, but the monthly payment and total paid are higher.

What credit score do I need for a personal loan?

Lenders set their own rules, and the rate you get depends on your credit history, income and existing debts. Prequalifying with a soft credit check lets you see likely rates without hurting your score. Use the rate you are actually offered here, not an advertised "as low as" rate.

Can I pay off a personal loan early?

Most personal loans have no prepayment penalty, but check the agreement. Paying early cuts the interest you owe, though the origination fee is not refunded. Use the payment calculator to see how a larger payment shortens the loan.

Related calculators

  • Debt Consolidation Calculator — Compare up to four debts with one consolidation loan: monthly payment, total interest, payoff time.
  • APR Calculator — True annual percentage rate of a loan once upfront fees and points are included, paid in cash or financed.
  • Payment Calculator — Monthly payment for a loan with a fixed term, or how long a fixed monthly payment takes to clear it.
  • Loan Calculator — Monthly payment, total interest and a full amortization schedule, plus what extra payments save.

Results are estimates for educational purposes and are not financial, tax or legal advice. See our disclaimer.