The Personal Loan Calculator works out the monthly payment, total interest and real APR of a personal loan, with optional origination fee and insurance.
Monthly payment: $424.94
| Monthly payment | $424.94 |
| Total of 60 payments | $25,496.45 |
| Total interest | $5,496.45 |
| Fees and insurance | $0.00 |
| Payoff time | 5 years |
| Real APR | 10.000% |
A personal loan is a fixed amount borrowed from a bank, credit union or online lender and repaid in equal monthly payments over typically two to seven years. Most are unsecured, so no collateral is needed, and the money can be used for almost anything: debt consolidation, home improvements, medical bills or big purchases.
The payment is P × i ÷ (1 − (1 + i)^−n), with i the monthly rate and n the number of months. $20,000 at 10% for five years is $424.94 a month and $5,496 of interest in total.
Many lenders charge an origination fee of 1–10%, usually deducted from the loan. If you borrow $20,000 with a 5% fee, you receive $19,000 but repay $20,000 plus interest, so the real APR is higher than the quoted rate. Optional credit insurance adds a monthly cost. Turn on "Add fee and insurance" to see the effect.
Rates depend mostly on credit score, income and existing debt. Prequalify with several lenders (a soft credit check does not hurt your score), compare APRs rather than rates, and choose the shortest term you can comfortably afford.
Can I repay early? Usually yes; check for prepayment penalties.
Is a personal loan better than a credit card? For large balances, usually, because rates are lower and the payoff date is fixed.
How fast can I get the money? Online lenders often fund within a few days.