Personal loans offer a fixed rate, a fixed payment, and a clear payoff date, which makes them a popular tool for consolidating debt or funding a large expense. This calculator shows your monthly payment and the total interest you will pay so you can compare offers and choose a term that balances affordability with total cost.
How personal loan payments work
Personal loans are installment loans, amortized just like a mortgage or car loan. Each equal monthly payment covers the interest due plus a portion of principal, and by the final payment the balance reaches zero. The calculator uses your loan amount, rate, and term to compute that fixed payment and the interest total.
How rate and term affect cost
Personal loan rates range widely — roughly 6% to 36% — based mostly on your credit score and income. A longer term lowers the monthly payment but increases total interest, while a shorter term costs more per month but far less overall. This calculator lets you see that trade-off instantly.
A worked example
A $15,000 loan at 11% over three years costs about $491 a month and roughly $2,700 in total interest. Stretch it to five years and the payment drops to about $326, but total interest climbs to roughly $4,600 — a lower payment that costs nearly $2,000 more in the end.
Using a personal loan wisely
- Consolidating credit card debt into a lower-rate personal loan can save money — just avoid running the cards back up.
- Watch for origination fees, which are sometimes deducted from your loan proceeds.
- Choose the shortest term whose payment you can comfortably afford.
- Check your rate through a soft pre-qualification before a hard credit inquiry when possible.