Transparent method
The formula
Worked example
Example inputs
How to interpret the result
Unsecured personal loans carry rates that vary widely based on creditworthiness, so a rate quoted to one applicant can look nothing like the rate quoted to another for the identical loan amount and term. Comparing an advertised starting rate against your own actual quote requires knowing where your own credit profile actually falls in that range.
Before you rely on it
What to check
Compare actual quoted rates from multiple lenders against your own credit profile, rather than anchoring expectations on an advertised low starting rate that may not apply to you.
The common error
Where people go wrong with personal loan calculator
Assuming an advertised low starting rate is the rate you'll actually be offered. Personal loan pricing varies significantly by credit profile, and the rate that applies to a strong applicant can be well below what a different applicant actually qualifies for.
Sensitivity evidence
How annual interest rate changes the monthly payment
| Annual interest rate | Monthly payment | Total interest |
|---|---|---|
| 7.5% | $301 | $3,034 |
| 9.5% | $315 | $3,902 |
| 11.5%worked example | $330 | $4,793 |
| 13.5% | $345 | $5,709 |
| 15.5% | $361 | $6,648 |
Every input, tested
Which input moves the monthly payment most
| Input | Tested from | To | Monthly payment at each end | Swing |
|---|---|---|---|---|
| Term | 4.0 years | 6.0 years | $391 to $289 | $102 (31%) |
| Loan amount | $13,500 | $16,500 | $297 to $363 | $66 (20%) |
| Annual interest rate | 9.5% | 13.5% | $315 to $345 | $30 (9.1%) |
Two variables at once
Monthly payment by annual interest rate and loan amount
| Annual interest rate \ Loan amount | $12,000 | $15,000 | $18,000 |
|---|---|---|---|
| 7.5% | $240 | $301 | $361 |
| 9.5% | $252 | $315 | $378 |
| 11.5% | $264 | $330 | $396 |
| 13.5% | $276 | $345 | $414 |
| 15.5% | $289 | $361 | $433 |
Step by step
The worked example, input by input
| Input | Value used |
|---|---|
| Loan amount | $15,000 |
| Annual interest rate | 11.5% |
| Term | 5.0 years |
| Monthly payment | $330 |
| Total interest | $4,793 |
Complete evidence
Full amortization schedule
Show all 60 rows
| Payment | Opening balance | Principal | Interest | Ending balance |
|---|---|---|---|---|
| Payment 1 | $15,000 | $186 | $144 | $14,814 |
| Payment 2 | $14,814 | $188 | $142 | $14,626 |
| Payment 3 | $14,626 | $190 | $140 | $14,436 |
| Payment 4 | $14,436 | $192 | $138 | $14,245 |
| Payment 5 | $14,245 | $193 | $137 | $14,051 |
| Payment 6 | $14,051 | $195 | $135 | $13,856 |
| Payment 7 | $13,856 | $197 | $133 | $13,659 |
| Payment 8 | $13,659 | $199 | $131 | $13,460 |
| Payment 9 | $13,460 | $201 | $129 | $13,259 |
| Payment 10 | $13,259 | $203 | $127 | $13,056 |
| Payment 11 | $13,056 | $205 | $125 | $12,851 |
| Payment 12 | $12,851 | $207 | $123 | $12,645 |
| Payment 13 | $12,645 | $209 | $121 | $12,436 |
| Payment 14 | $12,436 | $211 | $119 | $12,225 |
| Payment 15 | $12,225 | $213 | $117 | $12,013 |
| Payment 16 | $12,013 | $215 | $115 | $11,798 |
| Payment 17 | $11,798 | $217 | $113 | $11,581 |
| Payment 18 | $11,581 | $219 | $111 | $11,362 |
| Payment 19 | $11,362 | $221 | $109 | $11,141 |
| Payment 20 | $11,141 | $223 | $107 | $10,918 |
| Payment 21 | $10,918 | $225 | $105 | $10,693 |
| Payment 22 | $10,693 | $227 | $102 | $10,465 |
| Payment 23 | $10,465 | $230 | $100 | $10,236 |
| Payment 24 | $10,236 | $232 | $98 | $10,004 |
| Payment 25 | $10,004 | $234 | $96 | $9,770 |
| Payment 26 | $9,770 | $236 | $94 | $9,534 |
| Payment 27 | $9,534 | $239 | $91 | $9,295 |
| Payment 28 | $9,295 | $241 | $89 | $9,054 |
| Payment 29 | $9,054 | $243 | $87 | $8,811 |
| Payment 30 | $8,811 | $245 | $84 | $8,566 |
| Payment 31 | $8,566 | $248 | $82 | $8,318 |
| Payment 32 | $8,318 | $250 | $80 | $8,068 |
| Payment 33 | $8,068 | $253 | $77 | $7,815 |
| Payment 34 | $7,815 | $255 | $75 | $7,560 |
| Payment 35 | $7,560 | $257 | $72 | $7,303 |
| Payment 36 | $7,303 | $260 | $70 | $7,043 |
| Payment 37 | $7,043 | $262 | $67 | $6,780 |
| Payment 38 | $6,780 | $265 | $65 | $6,516 |
| Payment 39 | $6,516 | $267 | $62 | $6,248 |
| Payment 40 | $6,248 | $270 | $60 | $5,978 |
| Payment 41 | $5,978 | $273 | $57 | $5,705 |
| Payment 42 | $5,705 | $275 | $55 | $5,430 |
| Payment 43 | $5,430 | $278 | $52 | $5,152 |
| Payment 44 | $5,152 | $281 | $49 | $4,872 |
| Payment 45 | $4,872 | $283 | $47 | $4,589 |
| Payment 46 | $4,589 | $286 | $44 | $4,303 |
| Payment 47 | $4,303 | $289 | $41 | $4,014 |
| Payment 48 | $4,014 | $291 | $38 | $3,723 |
| Payment 49 | $3,723 | $294 | $36 | $3,429 |
| Payment 50 | $3,429 | $297 | $33 | $3,131 |
| Payment 51 | $3,131 | $300 | $30 | $2,832 |
| Payment 52 | $2,832 | $303 | $27 | $2,529 |
| Payment 53 | $2,529 | $306 | $24 | $2,223 |
| Payment 54 | $2,223 | $309 | $21 | $1,915 |
| Payment 55 | $1,915 | $312 | $18 | $1,603 |
| Payment 56 | $1,603 | $315 | $15 | $1,289 |
| Payment 57 | $1,289 | $318 | $12 | $971 |
| Payment 58 | $971 | $321 | $9.31 | $650 |
| Payment 59 | $650 | $324 | $6.23 | $327 |
| Payment 60 | $327 | $327 | $3.13 | $0.00 |
Where the inputs come from
Use the amount you need after subtracting any fee the lender deducts. If you are offered $15,000 with a 5% origination fee taken out of the proceeds, you receive $14,250 and might need to borrow more. The rate is the note rate for your credit profile; personal-loan rates vary widely by score and lender, so use a prequalified quote when possible. Terms are commonly two to seven years.
When the result stops applying
The calculation excludes origination fees, late fees and any rate discount for autopay. A lender's advertised rate may apply only to top credit tiers, and a hard inquiry lowers your score slightly when you apply. If you plan to consolidate cards, the loan does not remove the temptation to use the cards again.
What to compare it with
Compare the loan with what it replaces. If you are consolidating debt, the credit card payoff calculator shows what the same balance costs on a card, and the debt consolidation calculator compares the two directly. Ask lenders for a soft-pull prequalification so your credit score is not hit while you shop. A loan is a good tool for a defined purchase with a payoff plan and a poor one for covering a monthly shortfall, because the shortfall will return before the loan is repaid.
People also ask
Frequently asked questions
How does credit score affect the rate?
Lenders price risk in tiers. A borrower with excellent credit may be offered a rate well below what a fair-credit borrower sees for the same loan.
Is a personal loan cheaper than a credit card?
Often, because card APRs are typically higher than personal-loan APRs for the same borrower, but the fee and term determine the real comparison.
Can I repay a personal loan early?
Usually yes, and many lenders do not charge a penalty, but check the agreement. Paying early saves interest on the remaining balance.