See the monthly payment on a personal loan and its true cost, including origination fees and the real APR you pay.
How to use the personal loan calculator
Enter the loan amount, the interest rate the lender quoted and the repayment term. If the lender charges an origination (arrangement) fee, enter it as a percentage and choose how it is handled:
- Deducted — the most common approach in the US. The fee is taken out of the money you receive, but you repay the full loan amount.
- Added to loan — you receive the full amount and the fee is borrowed on top, so you pay interest on it.
The calculator returns your monthly payment, the true APR including the fee, total interest, the cash you actually receive and the total cost of borrowing, along with a month-by-month repayment schedule.
Personal loan formulas
Personal loans are almost always fixed-rate installment loans, so the payment follows the standard amortization formula:
where L is the amount borrowed, r the monthly rate (annual rate ÷ 12) and n the number of months. The APR is the rate that makes the payments you make equal to the money you actually receive:
There is no closed-form answer for i, so the calculator solves it numerically — the same method lenders use for the Truth in Lending disclosure in the US and comparable APR rules in the UK, EU and elsewhere.
Worked example
You borrow $15,000 at 11.5% for 3 years with a 5% origination fee deducted upfront. The fee is $750, so you receive $14,250, but you repay the full $15,000 plus interest. The monthly payment is $494.64 and total interest is $2,807.04. Because you only received $14,250, the effective APR is 15.09% — more than 3.5 points above the headline rate. Your total cost of borrowing is $3,557.04.
| Scenario | Payment | APR | Total cost |
|---|---|---|---|
| 3 years, no fee | $494.64 | 11.50% | $2,807 |
| 3 years, 5% fee deducted | $494.64 | 15.09% | $3,557 |
| 3 years, 5% fee added to loan | $519.37 | 14.92% | $3,697 |
| 5 years, 5% fee deducted | $329.89 | 13.77% | $5,543 |
Notice that the five-year loan has a lower APR — the fee is spread over more years — but a far higher total cost. APR is ideal for comparing loans of the same term; for different terms, compare the total cost as well.
If you need a specific amount in hand, gross it up: to receive $15,000 after a 5% deducted fee, you must borrow 15,000 ÷ 0.95 ≈ $15,789.
Is a personal loan the right choice?
Personal loans are useful for consolidating high-interest credit card debt, financing a large planned expense or covering an emergency when savings fall short. They work best when:
- The APR is clearly below what you pay now — credit card APRs often exceed 20%. Use the debt payoff calculator to compare your current plan.
- The payment fits comfortably in your budget. Lenders look at your debt-to-income ratio, and so should you.
- You avoid running the cleared credit cards back up after consolidating.
Tips for getting a cheaper personal loan
- Prequalify with several lenders. Many use a soft credit check that does not affect your score, and rates vary widely between banks, credit unions and online lenders.
- Look for no-fee lenders. A slightly higher rate with no fee can beat a lower rate with a 6–8% fee, especially on short loans. The APR calculator helps compare.
- Choose the shortest affordable term to minimise interest.
- Check for prepayment penalties so you can pay early if your finances improve.
Results are estimates for comparison only and not a loan offer or financial advice.
Cite or link to this page
Using this personal loan calculator in an article, report or homework? Copy a citation or a ready-made link:
Calcivia. (2026). Personal Loan Calculator. Retrieved October 31, 2026, from https://www.calcivia.com/personal-loan-calculator/"Personal Loan Calculator." Calcivia, 2026, https://www.calcivia.com/personal-loan-calculator/. Accessed 31 Oct. 2026.<a href="https://www.calcivia.com/personal-loan-calculator/">Personal Loan Calculator</a> by Calcivia