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Personal Loan Calculator — Payment, Interest & Payoff

Estimate your monthly payment, total interest, and payoff schedule for a fixed-rate personal loan. Enter your loan amount, annual interest rate (APR), and term to see exactly what the loan will cost.

Your numbers

$

How much you want to borrow.

%

Your quoted annual rate, e.g. 7.5.

yr

Repayment period in years.

Results

Monthly payment$500.95
Total interest$5,056.92
Total paid$30,056.92
Number of payments60

Before you sign for a personal loan, it pays to know exactly what it will cost. A personal loan is an installment loan: you borrow a fixed amount, then repay it in equal monthly payments over a set term. Each payment is split between interest (the lender’s charge on your remaining balance) and principal (the amount that actually reduces your debt). Early on, most of each payment is interest; as the balance shrinks, more goes to principal. This calculator models that schedule exactly so you can see your true cost before you sign.

The formula behind your payment

Your fixed monthly payment is the standard amortization (EMI) formula:

Payment = P × r ÷ (1 − (1 + r)⁻ⁿ)

where P is the loan amount, r is the monthly interest rate (your annual APR ÷ 12), and n is the total number of monthly payments (years × 12). For a 0% promotional loan the payment is simply the principal divided by the number of months. We compute every figure in full precision and round only when displaying dollars, so your totals always reconcile to the cent.

A worked example

Say you borrow $25,000 at a 7.5% APR over 5 years (60 payments):

  • Monthly payment: about $500.95
  • Total paid: about $30,056.92
  • Total interest: about $5,056.92

That interest figure is the real price of the loan. Lower your APR or shorten the term and it drops; stretch the term to lower the monthly payment and it climbs — the trade-off this tool makes visible.

How to get a lower rate

Personal loan APRs in the US generally run from around 7% for excellent credit to 36% for higher-risk borrowers. A few levers move your rate:

  • Credit score. The single biggest factor. Checking your report and disputing errors before you apply can pay off quickly.
  • Term length. Shorter terms usually carry lower rates and far less total interest.
  • Loan purpose and amount. Debt-consolidation loans are common; borrowing only what you need keeps both the payment and the interest down.
  • Rate shopping. Most lenders offer a pre-qualification with a soft credit pull, so you can compare real offers without hurting your score. Always compare the APR, not just the monthly payment — a low payment can hide a long, expensive term.

Reading your results

Use the monthly payment to check the loan fits your budget, and the total interest to compare offers head-to-head. If two loans have the same payment, the one with the shorter term almost always costs less overall. Adjust the inputs above to test scenarios — a slightly higher payment today can save hundreds or thousands in interest over the life of the loan.

Estimates are for planning only and assume a fixed rate with no fees. Your lender’s quote is the authoritative figure — see our disclaimer.

Frequently asked questions

How is a personal loan monthly payment calculated?
A fixed-rate personal loan uses the standard amortization (EMI) formula: payment = P · r / (1 − (1 + r)^−n), where P is the loan amount, r is the monthly interest rate (annual APR ÷ 12), and n is the number of monthly payments. Each payment covers that month’s interest first, and the rest reduces your balance.
What APR should I expect on a personal loan?
In the US, personal loan APRs typically range from about 7% for borrowers with excellent credit to 36% for higher-risk borrowers. Your rate depends on your credit score, income, loan amount, and term. Use your actual quoted APR for an accurate estimate.
Does a longer loan term lower my payment?
Yes — spreading the same loan over more months lowers the monthly payment, but you pay more total interest because you owe the balance for longer. A shorter term raises the payment but cuts total interest.
How much total interest will I pay?
Total interest is the sum of every payment minus the amount you borrowed. This calculator shows it directly: it adds up the interest portion of all scheduled payments, computed in full precision.
Can I pay off a personal loan early?
Usually yes. Most US personal loans have no prepayment penalty, so extra payments go straight to principal and save interest. Check your loan agreement, since a few lenders charge a prepayment fee.

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