Personal Loan Calculator
Calculate your monthly personal loan payment, total interest, and full amortization schedule for an unsecured personal loan.
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.
The Formula That Sets Your Personal Loan Payment
A personal loan usually has one fixed rate and one fixed term, so the lender divides the cost evenly across every month with this equation:
M: your payment each month.
P: the amount you borrow.
r: the rate per month, meaning the annual rate divided by 12.
n: how many monthly payments you will make, which is the term in years times 12.
Unsecured Means the Lender Has No Asset to Take
Most personal loans are unsecured. Nothing you own is pledged, so if payments stop the lender cannot simply take a car or a house; it has to pursue collections or a court judgment instead. Because that is a weaker position, approval and pricing rest heavily on your credit history, income, and existing debt. Borrowers with lower scores may see high rates or be declined outright.
How an Origination Fee Raises Your Real Cost
Some lenders subtract an origination fee from the loan before you receive it. Take the 15,000-dollar loan in the example below at 11% for 36 months, with a 6% fee. You still owe payments on 15,000 dollars (about 491 dollars a month), but only 14,100 dollars reaches your account. Solving for the rate that makes 36 payments of that size equal 14,100 dollars gives an effective annual cost of about 15.3%, noticeably above the 11% interest rate on the note. This is why the APR on a loan offer, which includes fees, is the number to compare between lenders, not the interest rate alone.
Soft Pull vs. Hard Pull When You Shop
Many online lenders let you check a prequalified rate using a soft credit inquiry, which does not affect your credit score and is visible only to you. A hard inquiry is run when you submit a formal application, and it can lower your score by a small amount for a short time. Some scoring models treat several inquiries for the same kind of loan within a short window as one, but the length of that window varies, so it is safer to do your rate comparisons with soft pulls and apply formally only to the lender you choose.
Consolidating Debt vs. Paying for a One-Time Expense
A personal loan used for debt consolidation replaces several balances, often credit cards, with one fixed payment. It saves money only if the new APR, fees included, is lower than the blended rate on the debts being replaced, and if the term is not stretched so far that total interest ends up higher anyway. It also does not help if the emptied cards are run up again. Using a personal loan for a single expense such as a medical bill or a repair is simpler: the amount is known, and the fixed schedule gives a clear payoff date.
Fine Print to Check Before You Sign
Confirm whether the rate is fixed, whether there is a prepayment penalty or a late fee, how quickly funds are released, and whether the lender reports your payments to the credit bureaus, since on-time reporting can help build your history. Ask whether the lender can send money directly to your creditors on a consolidation loan.
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 Vocabulary
Unsecured Loan — credit with no collateral behind it, judged on your creditworthiness alone.
APR — the yearly cost of the loan expressed as a rate that includes certain fees, which makes offers easier to compare than the interest rate alone.
Origination Fee — a charge, commonly between 1% and 8% of the loan, taken out of the funds before they reach you. Enter it above to see your actual cash received; the payment is still based on the full amount.
Soft Inquiry / Hard Inquiry — a soft inquiry is a background check that leaves your score alone; a hard inquiry accompanies a formal application and can lower your score slightly.
Debt Consolidation — rolling several existing debts into a single new loan with one payment.
Prepayment Penalty — a fee some lenders charge for paying a loan off early; many personal loans have none, but the agreement is the place to confirm.
Sources & Further Reading
- Consumer Financial Protection Bureau — Consumer tools and guides: the federal consumer finance regulator's hub for plain-language guides on borrowing, credit, and loan costs.
- Federal Trade Commission — Consumer Advice: consumer guidance on credit, loans, and avoiding lending scams.
This calculator gives estimates for information only. It is not a loan offer or financial advice, and actual personal loan terms depend on your lender and credit profile, so confirm exact figures with the lender.
Frequently Asked Questions
Why does a personal loan often cost more than an auto loan or mortgage?
Because it is usually unsecured. With no car or house to fall back on, the lender carries more risk of loss and prices that into the rate, especially for borrowers with limited credit history.
How much does an origination fee really add to the cost?
More than the fee percentage suggests, because you repay the full amount but receive less. In the 15,000-dollar example with a 6% fee, the 14,100 dollars you receive costs an effective rate of about 15.3% instead of 11%. Compare offers by APR, which includes the fee.
Will checking my rate hurt my credit score?
Prequalification with a soft inquiry does not affect your score. A hard inquiry is made when you formally apply and can cause a small, temporary dip. Ask the lender which type its rate check uses before you submit.
Is a personal loan a good way to consolidate debt?
It can be when the new APR is lower than the blended rate on the debts you are paying off and the term does not stretch so long that total interest rises. It does not solve the underlying spending problem, so avoid rebuilding balances on the cards you just paid off.
Is there a prepayment penalty if I pay off a personal loan early?
Most loans from banks, credit unions, and mainstream online lenders have no prepayment penalty, so you can pay ahead without an added fee. A few lenders and products do charge one, so read your specific loan agreement before assuming early payoff is free.