Personal Loan Calculator

How to Use the Calculator

This calculator helps you determine your monthly payment and the total cost of a personal loan. Start by entering:

• Loan Amount: The total amount you plan to borrow.
• Annual Interest Rate: The percentage rate charged by the lender.
• Loan Term: How long you plan to repay the loan (in years).

Click “Calculate” to instantly view your:

• Monthly Payment
• Total Interest Paid
• Total Loan Cost (Principal + Interest)
• Full Amortization Schedule showing each month’s breakdown

Understanding the Results

Using average U.S. figures:

• Loan Amount: $20,000
• Interest Rate: 11.5%
• Loan Term: 5 years

You’d get:

• Monthly Payment: $440.45
• Total Interest Paid: $6,427.11
• Total Loan Cost: $26,427.11

This scenario reflects typical lending terms based on national averages. You can adjust the inputs to better match your needs.

The amortization table shows how each monthly payment is split between interest and principal. Early payments cover more interest; later ones pay off more principal.

Tips to Save Money

• Improve Your Credit Score: A higher score can qualify you for a lower rate.
• Choose a Shorter Term: Reduces interest paid, though monthly payments are higher.
• Shop Around: Compare lenders for better APR offers.
• Avoid Fees: Read terms for prepayment penalties or origination fees.

Try the calculator now to plan your loan with confidence.

FAQ:
Q: What is a personal loan used for?
A: Personal loans can fund debt consolidation, home repairs, medical expenses, or large purchases.
Q: How is my rate determined?
A: Lenders consider your credit score, income, and loan amount.
Q: Can I pay off the loan early?
A: Yes, though some lenders may charge a prepayment penalty.
Q: Are interest payments tax-deductible?
A: Generally, no, unless the loan is for home improvements.