Personal Loan Calculator: Monthly Payment & Total Interest
Work out the monthly payment on an unsecured personal loan and the total interest you will pay before the balance is cleared.
Adjust the inputs and select Calculate for a full breakdown.
Year-by-year amortization schedule
Compare Common Scenarios
How the numbers shift across typical situations for this calculator:
| Scenario | Monthly payment | Total interest | Total of payments |
|---|---|---|---|
| $15k · 11.0% · 3-year | $491.08 | $2,678.91 | $17,678.91 |
| $10k · 12.3% · 5-year | $223.96 | $3,437.81 | $13,437.81 |
| $25k · 9.0% · 4-year | $622.13 | $4,862.05 | $29,862.05 |
| $5k · 14.0% · 2-year | $240.06 | $761.55 | $5,761.55 |
How This Calculator Works
Provide the amount you want to borrow, the annual percentage rate from your loan offer, and the term. The tool turns the APR into a monthly rate, counts the scheduled payments, and uses the fixed-rate amortization formula to produce one constant monthly figure. The year-by-year schedule then shows how the balance falls and how the interest share of each payment shrinks over time.
The Formula
Fixed-Rate Amortization
P = loan amount, r = monthly rate (APR ÷ 12), n = number of monthly payments
Worked Example
Imagine borrowing $15,000 at 11% APR to be repaid over 3 years. With a monthly rate near 0.917% and 36 payments, the monthly amount is about $491. Across the loan you repay roughly $17,680, so interest adds close to $2,680 to the cash you originally received.
Key Insight
Personal loan rates are driven mainly by your credit score. Raising your score before applying, or adding a creditworthy co-signer, can cut the rate and total interest far more than negotiating the loan amount.
APR vs interest rate vs APY — three numbers, different meanings
Interest rate (or 'note rate'): the percentage charged on the principal balance. APR (Annual Percentage Rate): interest rate PLUS upfront fees (origination, points, mortgage insurance, broker fees) expressed as an annual percentage — the legally-required 'all-in' borrowing cost. APR is always equal to or higher than interest rate.
APY (Annual Percentage Yield): the effective annual rate accounting for compounding frequency — used for SAVINGS products, not loans. APY > stated rate when compounding more than once per year. Banks use 'APY' for savings (to show better than competitors) and 'APR' for loans (to comply with Truth in Lending Act disclosure rules).
Practical comparison: a 6.5% mortgage with $5,000 of upfront fees on a $300,000 loan has an APR of ~6.7% (the fees amortize over the loan life as additional interest). Compare APRs across lenders for apples-to-apples loan shopping. A 6.4% loan with $10,000 of fees can have a HIGHER APR than a 6.7% loan with $0 fees — making the 'lower rate' loan actually more expensive.
Secured vs unsecured loans: why rates differ so much
Loans split into two fundamental categories. SECURED loans use collateral the lender can seize if you default: mortgages (house), auto loans (car), HELOCs (home equity), title loans (car title), securities-backed loans (investment portfolio). UNSECURED loans have no collateral: personal loans, credit cards, signature loans, most student loans.
Rate impact is dramatic. As of 2026: typical mortgage APR ~7%, auto loan ~7-9%, HELOC ~8-9%. Personal loan ~10-25% (depending on credit), credit card ~22% average. Even with identical credit score, the same borrower will pay 3× more for unsecured than secured because the lender's risk is materially higher.
Strategic implication: when borrowing, structure it as secured when possible. A homeowner needing $30k for renovations should consider a HELOC at 8% rather than a personal loan at 12%. The trade-off: secured loans give the lender the right to take the collateral. Defaulting on a HELOC can mean foreclosure on your home — a much more severe consequence than defaulting on a personal loan (credit damage but no asset loss). Match the loan type to the asset you can afford to risk.
Variable rate vs fixed rate: which one when
Fixed rate: locked for the entire loan life. Predictable payments, no surprise increases. Costs slightly more upfront — lenders charge a 'fixed-rate premium' for the certainty.
Variable rate (ARM, adjustable-rate, floating): starts lower but adjusts periodically based on a benchmark (typically prime rate, SOFR, or 1-year Treasury) + margin. Common structures: 5/1 ARM (fixed 5 yrs then annual adjustments), 7/1 ARM, 10/1 ARM. Adjustment caps limit how much rate can move per year (typically 2%) and over loan life (typically 5%).
Decision rule: fixed wins if you'll hold the loan longer than the initial fixed period AND rates are at average-or-above level (likely to rise). Variable wins if you plan to refinance or sell BEFORE the fixed period ends OR if rates are above-average (likely to fall). Most US borrowers should default to fixed — the certainty premium is small (~0.5%) and most homeowners hold mortgages longer than expected. Variable loans suit short-tenure scenarios (corporate relocations, planned moves) or aggressive sophisticated borrowers.
Typical loan rates by type and credit score (2026)
APR ranges for common US loan types by credit score band. Actual rates depend on lender, term, and economic conditions.
| Loan type | Excellent (740+) | Good (700-739) | Fair (640-699) | Poor (<640) |
|---|---|---|---|---|
| 30-year mortgage | 6.8-7.0% | 7.0-7.2% | 7.3-7.7% | 7.8-9%+ |
| Auto loan (new, 60mo) | 6.5-7.5% | 7.5-9.0% | 9.5-14% | 14-22% |
| HELOC | 7.5-8.5% | 8.0-9.0% | 9.0-11% | 11-15% |
| Personal loan | 8-12% | 11-16% | 16-25% | 25-36% |
| Credit card (purchase) | 18-22% | 21-26% | 25-30% | 29-36% |
Credit score impact is largest for unsecured loans (personal, credit card) where lender risk depends entirely on borrower quality. Secured loans (mortgage, HELOC) have narrower credit-based ranges because collateral mitigates lender risk. Improving credit from Fair to Good can save 3-15 percentage points depending on loan type.
Frequently Asked Questions
What is an unsecured personal loan?
It is a loan not backed by collateral such as a house or car. Because the lender has no asset to claim, approval and pricing rest heavily on your credit score and income, so rates are usually higher than on secured loans.
What APR should I enter into the calculator?
Use the APR from a real loan offer or pre-qualification. APR includes most lender fees, so it reflects the true annual cost of the loan better than the headline interest rate on its own.
Does checking my rate hurt my credit score?
Most lenders let you pre-qualify with a soft credit check that does not affect your score. A hard inquiry happens only when you formally apply, so it is safe to compare several offers before committing.
Can I use a personal loan for any purpose?
Generally yes — common uses include consolidating debt, home repairs, or large one-off costs. A few lenders restrict use for education or business, so check the loan agreement if your purpose is unusual.
Is a personal loan better than using a credit card?
Often it is. Personal loans usually carry lower rates than credit cards and have a fixed end date, which forces the balance steadily down. Compare the two APRs directly before deciding.
What happens if I miss a payment?
A missed payment typically triggers a late fee and, once reported, damages your credit score. Persistent non-payment can send the loan to collections. Contact the lender early if you expect trouble, as many offer hardship options.
References & Authoritative Sources
- CFPB — Consumer Financial Protection Bureau — Consumer loan guides and APR disclosure rules · consulted May 31, 2026 · Federal consumer protection — Truth in Lending Act, APR calculation, loan-shopping guidance
- Federal Reserve — Consumer Credit (G.19) — Average interest rates by loan type · consulted May 31, 2026 · Authoritative source — monthly US average rates for major consumer loan types
- Truth in Lending Act — Regulation Z (12 CFR Part 1026) — Loan disclosure requirements · consulted May 31, 2026 · Federal statute — APR calculation methodology, finance charge components, disclosure timing
Related Calculators
Data Sources & Benchmarks
This calculator draws on 3 independent, dated sources. The starting values for interest rate are taken from the benchmarks below and refresh whenever the snapshots are updated.
Methodology & Review
Payments use the standard fixed-rate amortization formula. The calculator assumes a fixed APR with no origination fee deducted from proceeds; where a lender deducts a fee up front, enter the amount actually received. Results are checked against lender disclosures.
Updated