When to use this calculator
- Debt consolidation — Combine cards at 18%+ into one loan at 12%? See the savings.
- Home improvement — $15k for a kitchen. What’s the monthly cost at 10%?
- Wedding or vacation — Big expense, fixed payments. Plan before you borrow.
- Medical or emergency — Compare 24 vs 48 months. Lower payment vs less interest.
How your personal loan monthly payment is calculated
Simple: Unsecured loan = no collateral. Fixed monthly payments = interest + principal.
Early payments = mostly interest. Later = mostly principal. Amount, rate, and term set your payment. Try our $10,000, debt consolidation, home improvement, or mortgage calculators.
How to use this calculator
- Select your currency — USD, GBP, EUR, or another to match your lender.
- Enter the loan amount — The total you plan to borrow (use the amount you’ll receive after any origination fee, or add the fee to principal if it’s financed).
- Enter the interest rate — Use the annual percentage rate (APR) your lender quoted.
- Enter the term in months — 12, 24, 36, 48, or 60 are typical for personal loans.
- Click Calculate — Instantly see your monthly payment, total repayment, and total interest.
Real-world example
A $12,000 personal loan at 9% for 36 months means a monthly payment of about $382. Over three years you’d repay roughly $13,750 in total—$1,750 in interest. Stretch to 60 months and the payment falls to $249, but total interest rises to about $2,940. Compare scenarios in the calculator above before you apply.
Term comparison: $12,000 at 9% APR
How loan term affects monthly payment and total interest:
| Term | Monthly Payment | Total Interest |
|---|
| 24 months | $548 | $1,162 |
| 36 months | $382 | $1,750 |
| 48 months | $299 | $2,343 |
| 60 months | $249 | $2,940 |
Try Personal Loan for $10,000 or Debt Consolidation for related tools.
What affects your personal loan payment
- Loan amount — Borrowing more increases both the monthly payment and total interest.
- Interest rate — Your credit score, income, and lender determine the rate. Better credit often means lower rates and lower payments.
- Loan term — A longer term reduces the monthly payment but usually increases total interest over the life of the loan.
- Origination fees — Some lenders charge 1–6% upfront. If financed, add the fee to the loan amount for a truer payment estimate.
What to know when you shop
Run a few scenarios—same amount with 36 vs 60 months, or the same budget at different rates. Compare total cost, not just the monthly payment. Origination fees are not included; if financed, add them to the loan amount. For vehicles, try our car loan calculator or auto loan calculator; for housing, the mortgage calculator; for interest-only math, the interest calculator or simple interest calculator.
Frequently asked questions
- Will applying for a personal loan hurt my credit?
- A hard inquiry can lower your score slightly for a short time. On-time payments help build positive history; late payments hurt more. If you shop multiple lenders within a focused window, credit scoring models often treat that as one inquiry for the same product.
- Is the rate on a personal loan usually fixed?
- Many offers are fixed, so the payment is predictable. Some lines or variable products can change with an index. Confirm in your disclosure before you accept.
- Are origination fees built into this calculator?
- No. We model principal and interest only. If the fee is financed, increase the loan amount by the fee. If it is paid upfront, your true cost differs from the payment shown.
- Can I pay extra or pay off early?
- Often yes, but some lenders charge a prepayment fee or front-load interest. Check your agreement. If there is no penalty, extra payments usually reduce total interest.
- Is a personal loan better than a credit card?
- It depends. Installment loans give a clear payoff date and fixed payment. Cards offer flexibility but can be expensive if you only pay the minimum. Compare APRs and fees for your situation.