Personal Loan Calculator
Work out the monthly cost of any U.S. personal loan — debt consolidation, home improvement, medical bills, or moving costs. Enter the loan amount, the APR, and the term to see your monthly payment alongside the total interest charged. Useful for comparing offers from credit unions, online lenders like SoFi or LightStream, and your bank.
How is this calculated?
Repayments use the standard amortization formula: M = P × [r(1+r)ⁿ] / [(1+r)ⁿ − 1], where P is the loan amount, r is the monthly rate (APR ÷ 12), and n is the number of monthly payments. The model assumes a fixed APR for the full term, which matches the structure of most U.S. unsecured personal loans. Variable-rate or revolving facilities like HELOCs and credit cards behave differently and are better modeled with the credit card payoff calculator.
Frequently Asked Questions
What is APR and how is it different from the interest rate?
APR (Annual Percentage Rate) bundles the interest rate and any required fees — origination fees in particular — into a single annualized figure, allowing apples-to-apples comparison. The Truth in Lending Act requires lenders to disclose APR. A loan with a 7% rate and a 5% origination fee can have an APR over 9%.
Are there prepayment penalties on personal loans?
Most reputable U.S. personal loan lenders (SoFi, LightStream, Marcus, Discover, major credit unions) do not charge prepayment penalties. Some subprime lenders and older loans may have them. Always check the loan agreement before signing — paying off early should save you interest, not trigger a fee.
What APR can I expect in 2026?
Personal loan APRs in 2026 typically range from around 8%–10% for borrowers with excellent credit (FICO 750+) up to 30%+ for fair credit. Loan size and term matter — rates are usually keenest on $10,000–$25,000 over 3–5 years. Credit unions often beat banks for members with average credit.
Should I take a longer term to lower the monthly payment?
It will cut your monthly cost but raise the total interest paid, sometimes dramatically. A $15,000 loan at 10% over 3 years costs about $2,420 in interest; over 7 years it climbs to about $5,920. Stretch the term only if you genuinely need the cash flow.
Last updated: May 2026 · Rates sourced from IRS