How to use the Personal Loan Calculator
- Enter the amount you need to receive in hand.
- Enter the APR you were quoted, not the promotional headline rate.
- Set the term in years — shorter terms cost more monthly but far less overall.
- Add the origination fee percentage from the offer letter, usually 1% to 8%.
How the calculation works
Most personal lenders deduct the origination fee from disbursement but charge interest on the full loan amount, so a $15,000 request at a 3% fee means paying interest on $15,450 while receiving $15,000. The calculator finances the fee explicitly to make that visible.
Personal loans are fixed-rate and fully amortising, which is their main advantage over revolving credit: the balance is contractually guaranteed to reach zero. The trade-off is a higher rate than secured debt because there is no collateral to recover.
Because the loan is unsecured, pricing is driven almost entirely by credit score band. Moving from the 660–699 band to 720+ commonly cuts the rate by five points or more, which is usually worth a few months of credit repair before applying.
Payment = [(L + L × fee) × r] ÷ [1 − (1 + r)⁻ⁿ], r = APR / 12Source: Truth in Lending Act APR disclosure requirements, 12 CFR Part 1026 (Regulation Z).
Worked example
$15,000 at 12.5% APR over 4 years with a 3% origination fee.
- The fee adds $450, financing $15,450.
- Monthly rate is 1.0417%, over 48 payments.
- Payment works out to about $411.
Total repaid is roughly $19,720 — about $4,720 of financing cost on $15,000 received.
Frequently asked questions
Is a personal loan better than a credit card?+
Usually yes for a fixed one-off expense: rates are lower and the balance amortises instead of revolving indefinitely.
Can I repay early without penalty?+
Most major lenders allow it, but confirm — a minority still charge a prepayment penalty on longer terms.
Does applying hurt my credit?+
Pre-qualification uses a soft pull. Only the formal application triggers a hard inquiry, typically worth a few points for a few months.
Last reviewed September 1, 2026. We review this page whenever the underlying formula, tax year, published rate or standard changes.