Personal Loan Calculator
Calculate your monthly personal loan payment, total interest, and full amortization schedule for an unsecured personal loan.
Calculator verified • Last updated: August 2026
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Amortization Schedule
| Period | Payment | Principal | Interest | Balance |
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Balance Over Time
Your monthly payment stays fixed, but its split between interest and principal doesn't — early on, more of it covers interest on the still-large balance, so paying that balance down starts slow and picks up speed as you go.
How to Calculate a Personal Loan Payment
A personal loan is a fixed-rate installment loan repaid in equal monthly payments, using the standard amortization formula:
M: the monthly payment.
P: the amount borrowed.
r: the monthly interest rate (the annual rate divided by 12).
n: the number of monthly payments (loan term in years × 12).
Why Personal Loans Usually Cost More Than an Auto Loan or Mortgage
Most personal loans are unsecured — there's no car, house, or other asset backing the loan that the lender can repossess if payments stop. An auto loan is secured by the vehicle and a mortgage is secured by the home, so the lender has a fallback if the borrower defaults; a personal loan usually has no such collateral. That extra risk to the lender is a major reason personal loan rates tend to run higher than secured loan rates for a similarly-qualified borrower, even though the dollar amounts are often smaller.
What Personal Loans Are Commonly Used For
Because they aren't tied to a specific purchase like a car or a home, personal loans are flexible — common uses include debt consolidation (combining several higher-rate balances into one fixed payment), home improvement projects, medical expenses, or major one-time costs. The fixed rate and fixed term mean the payment and payoff date are known in advance, unlike a revolving line of credit.
Worked Example
A 15,000-dollar personal loan at 11% over 3 years: the monthly rate is 11% ÷ 12 ≈ 0.9167%, and n = 36 payments. Plugging into the formula gives a monthly payment of about 491 dollars, with roughly 2,676 dollars in total interest paid over the 3 years.
Personal Loan Terms You Should Know
Unsecured Loan — a loan with no collateral backing it; approval is based on the borrower's creditworthiness alone, which is why rates tend to run higher than a secured loan.
Origination Fee — a one-time fee (typically 1%-8% of the loan amount) some lenders charge to process a personal loan, deducted from the loan proceeds before disbursement. Enter it above to see your real "Amount You'll Actually Receive" — your monthly payment stays the same either way, since it's still calculated on the full loan amount, not the reduced proceeds.
Debt Consolidation — using a single new loan (often a personal loan) to pay off several existing higher-rate debts, simplifying repayment into one fixed monthly payment.
Prepayment Penalty — a fee some lenders charge for paying off a loan's balance early, meant to recover interest income the lender expected to collect over the full term; most mainstream personal loans don't have one, but it's always worth confirming in the loan agreement.
This calculator provides estimates for informational purposes only and is not a loan offer, a guarantee of any specific rate or terms, or financial advice. Actual personal loan terms depend on your lender and your creditworthiness — confirm exact figures with your lender.
Frequently Asked Questions
Why do personal loans have higher interest rates than auto loans or mortgages?
Most personal loans are unsecured — they aren't backed by collateral the lender can repossess if you stop paying, unlike an auto loan (the car) or a mortgage (the house). That extra risk to the lender is typically priced in as a higher interest rate compared to a similarly-qualified borrower's secured loan.
How is a personal loan payment calculated?
The same fixed-rate amortization formula used for any installment loan: M = P × r(1+r)^n / [(1+r)^n − 1], where P is the amount borrowed, r is the monthly interest rate, and n is the number of monthly payments.
What can affect the interest rate I'm offered on a personal loan?
Credit score is the biggest factor, followed by income, existing debt levels, and the loan term itself — shorter terms often carry somewhat lower rates since the lender's money is at risk for less time.
Does an origination fee change my monthly payment?
No. An origination fee is deducted from your loan proceeds at disbursement, not from your monthly payment — you still owe and pay interest on the full loan amount. The fee only reduces how much cash you actually receive, which this calculator shows as "Amount You'll Actually Receive."
Is there a prepayment penalty if I pay off a personal loan early?
Most personal loans from banks, credit unions, and mainstream online lenders have no prepayment penalty — you can pay extra or pay off the balance early without an added fee. Some lenders, particularly certain subprime or shorter-term personal loan products, do charge one, so always check your specific loan agreement's terms before assuming early payoff is free.