Calculate monthly payments, total interest and total cost of any personal loan. Enter the loan amount, interest rate and term to see your full repayment schedule and affordability check.
Enter the loan amount, annual interest rate and term in months. Add any origination or setup fees to see the true cost of the loan including APR.
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Personal loan payments use standard amortisation: Monthly Payment = P x r x (1+r)^n / ((1+r)^n - 1), where P is the principal, r is the monthly interest rate (annual rate / 12) and n is the number of monthly payments. Each payment covers accruing interest first, with the remainder reducing the principal. Early payments are mostly interest; later payments are mostly principal.
Personal loan rates vary widely based on credit score, lender and loan purpose. In the US (2024-2025): excellent credit (760+) typically gets 6-10% APR; good credit (700-759) gets 10-16%; fair credit (640-699) gets 16-25%; poor credit may face 25-36% or higher. UK personal loan rates for good credit typically range from 6-15% APR. Always compare at least 3 lenders before accepting an offer.
The interest rate is the base cost of borrowing expressed as a percentage. APR (Annual Percentage Rate) includes the interest rate plus all fees (origination fees, closing costs etc.) and represents the true annual cost of the loan. APR is always higher than or equal to the interest rate. When comparing loans, always use APR as the benchmark — a lower interest rate with high fees may be more expensive than a slightly higher rate with no fees.
A common guideline is to keep total monthly debt payments (including the new loan) below 36% of gross monthly income. To find your maximum affordable payment: multiply gross monthly income by 0.36 and subtract existing debt payments. For example, on $5,000 monthly income with $500 existing debt payments: maximum new payment = ($5,000 x 0.36) - $500 = $1,300/month.
A shorter term means higher monthly payments but significantly less total interest paid — the loan costs less overall. A longer term means lower monthly payments but much more interest over the life of the loan. Choose the shortest term where the payment comfortably fits your budget. The total interest difference between a 24-month and 60-month term on a $15,000 loan can easily exceed $2,000-3,000.
Common personal loan fees include: origination fee (typically 1-8% of loan amount, deducted upfront or added to balance), prepayment penalty (charged for paying off early — avoid loans with this), late payment fee (typically $15-40 or 5% of payment), returned payment fee, and annual fees (rare for personal loans). The origination fee significantly affects the true APR — always calculate the all-in cost.
Most personal loans allow early repayment, but some charge prepayment penalties. Before making extra payments, confirm your lender has no prepayment penalty. If there is none, overpaying each month reduces the principal faster, dramatically cutting total interest paid. Even an extra $50-100 per month on a multi-year loan can save hundreds or thousands in interest and shorten the repayment period.
Most lenders require a minimum credit score of 580-640 for approval, though the best rates require 700+. With a score below 580, traditional lenders may decline the application. Options for lower credit scores include: secured personal loans (using collateral), credit union loans (often more flexible), peer-to-peer lenders, or adding a creditworthy co-signer. Always check the lender minimum before applying to avoid hard enquiry impact on your score.
