A personal loan calculator shows the fixed monthly payment and the total you will repay on an installment loan, using the APR a lender actually offered you. Formula: Payment = L × r ÷ (1 − (1 + r)^−n), where r = APR ÷ 12 and n = months; total paid = payment × n. $12,000 at 12.5% APR for 36 months costs $401.44 a month and $14,451.97 in total, so $2,451.97 goes to interest and charges.
On this page
How to use the personal loan calculator
- Enter the amount you want to borrow.
- Enter the APR from a real offer or prequalification.
- Enter the term in months.
- Optionally note your credit score so you remember which offer it went with.
The personal loan calculator shows the monthly payment and total paid. The score box is only a note; it does not set a rate, because lenders price loans in different ways.
What formula does the personal loan calculator use?
The tool uses the standard fixed-payment formula: Payment = L × r ÷ (1 − (1 + r)−n), where L is the loan amount, r is the APR divided by 12, and n is the number of months. Total paid is the payment times n.
Using the APR rather than the plain interest rate is deliberate. The CFPB explains that the APR is a broader measure of cost that includes the interest rate plus other charges. If an origination fee is taken out of the loan proceeds, you receive less than the amount borrowed, so borrow enough to cover what you need.
Personal loan calculator worked example
Results from the personal loan calculator:
| Loan | APR | Term | Monthly payment | Total paid |
|---|---|---|---|---|
| $5,000 | 18% | 24 months | $249.62 | $5,990.89 |
| $12,000 | 12.5% | 36 months | $401.44 | $14,451.97 |
| $25,000 | 9.5% | 60 months | $525.05 | $31,502.79 |
A longer term lowers the payment but raises the total. If the $12,000 loan could be paid in 24 months instead of 36, the payment rises and the total interest falls. Try both in the personal loan calculator before you choose.
How your credit score fits in
The CFPB describes a credit score as a number that predicts how likely you are to repay a loan on time, and lenders use it with other information to decide whether to lend and at what price. There is no single public table linking scores to personal loan rates, so this tool does not guess one. Instead, get prequalified offers from a few lenders, enter each APR into the personal loan calculator, and compare the payments and totals side by side.
Comparing personal loan offers
Line up offers for the same amount and term. Look at the APR, the monthly payment, any origination fee, late fees and whether there is a prepayment penalty. A loan with no prepayment penalty lets you pay it off early and save interest. If you are using the money to pay off cards, compare the result with a debt consolidation calculator run, and make sure the new payment fits your budget before you sign.
Common mistakes to avoid
A common mistake is comparing offers by monthly payment alone. A lower payment can simply mean a longer term and a bigger total. Another is forgetting origination fees that are subtracted from the money you receive; if you need $10,000 in hand and the fee is 5%, you have to borrow more than $10,000. A third is applying with many lenders without knowing whether each one uses a soft or hard credit check. Ask first.
Write down each offer’s APR, fee and term, run them all through the personal loan calculator, and choose the lowest total you can comfortably afford each month.
Estimates for education only, not tax, legal or financial advice. Check current rules with the tax authority or a qualified adviser.
Related converters and calculators
Related calculators:
- Loan calculator: general loan payment
- Debt consolidation calculator: combine debts
- APR calculator: true cost with fees
Sources
CFPB: What is the difference between a loan interest rate and the APR?; CFPB: What is a credit score?; CFPB: What is a prepayment penalty?.
Questions about this calculator
How is a personal loan payment calculated?
With the standard amortization formula using the APR ÷ 12 as the monthly rate and the term in months.
Does my credit score change the result?
Not in this tool. Enter the APR a lender offered you; the score is only stored as a note.
What is the payment on a $12,000 personal loan?
At 12.5% APR over 36 months, about $401.44 a month and $14,451.97 in total.
Should I use the interest rate or the APR?
Use the APR. It includes the interest rate plus other charges, so it shows the fuller cost.
Is a longer term better?
It lowers the payment but increases the total you repay.
Check the assumptions and units before relying on a result. Financial, tax and health estimates do not replace advice for your individual circumstances.
Report a calculation issue