Personal Loan Calculator
- Updated
- Formula shown
- Free, no sign-up
Results
Monthly payment of $327.39 for 36 months; APR including the fee 13.85%
| Term | Monthly payment | APR | Total cost |
|---|---|---|---|
| 24 months | $466.08 | 15.13% | $1,586 |
| 36 months (yours) | $327.39 | 13.85% | $2,186 |
| 48 months | $258.46 | 13.19% | $2,806 |
| 60 months | $217.42 | 12.8% | $3,445 |
| 72 months | $190.34 | 12.53% | $4,105 |
To receive the full $10,000, you would need to borrow about $10,417.
How to use the personal loan calculator
- Enter the loan amount, the interest rate and the term in months from the offer.
- Enter the origination fee as a percentage. Use 0 if the lender charges none.
- Choose how the fee is charged. Most lenders take it from the money they send you; some add it to the balance instead. The offer or loan agreement will say which.
- Compare the APR and total cost, and use the table to see how the term changes them.
Personal loan payment and APR formulas
Fee = loan amount × fee %
APR: solve Cash received = Payment × (1 − (1 + a)−n) ÷ a, then APR = a × 12
B is the balance the payments are based on: the loan amount if the fee is taken from the money you receive, or the loan amount plus the fee if it is added. r is the interest rate ÷ 12 and n the number of months. The APR is the monthly rate a that makes the payments worth exactly the cash you received, multiplied by 12. It has no closed-form solution, so the calculator finds it numerically, the same way the RATE function in a spreadsheet does. This follows the actuarial method that US lenders use for Truth in Lending disclosures.
Worked example
A $10,000 loan at 11% for 36 months has a payment of $327.39. With a 4% origination fee taken up front, you receive $9,600 but still repay the full $10,000 plus $1,786 of interest. The loan costs $2,186 in total and the APR is 13.85%, well above the 11% rate.
If the same fee were added to the balance instead, you would receive the full $10,000, the payment would rise to $340.48 and the APR would be 13.73%.
Comparing offers. A loan at 9% with a 6% fee has an APR of 13.28% and costs $2,048. A loan at 11% with no fee has an APR of 11% and costs $1,786, so the higher rate is the cheaper loan.
How an origination fee raises the APR
APR on a $10,000 loan at an 11% interest rate, with the fee taken from the loan.
| Fee | 24 months | 36 months | 60 months |
|---|---|---|---|
| 0% | 11% | 11% | 11% |
| 2% | 13.04% | 12.4% | 11.88% |
| 4% | 15.13% | 13.85% | 12.8% |
| 6% | 17.29% | 15.33% | 13.73% |
| 8% | 19.52% | 16.86% | 14.7% |
A fee hurts most on short loans, because its cost is spread over fewer months.
Tips for choosing a personal loan
- Compare APRs and total cost. The rate alone hides the fee. The APR calculator handles other fee structures.
- Borrow what you need after the fee. If the fee is deducted and you need a set amount in hand, borrow the amount ÷ (1 − fee %). The calculator shows that figure.
- Use a loan to replace dearer debt, not add to it. If you are paying off credit cards, the debt consolidation calculator compares the total cost both ways.
- Check for prepayment penalties before you plan to repay early.
These are estimates. The lender's Truth in Lending disclosure gives the official APR, finance charge and payment schedule.
Frequently asked questions
What is the monthly payment on a $10,000 personal loan?
At 11% for 36 months it is $327.39 a month, with $1,786 of interest. Over 60 months the payment drops but the total interest rises.
How does an origination fee change the APR?
The fee reduces the cash you receive while the payments stay the same, so the effective rate rises. A 4% fee taken from a $10,000 loan at 11% for 36 months leaves you $9,600 and raises the APR to about 13.85%.
Is the origination fee deducted or added to the loan?
Most often it is deducted: the lender sends the loan amount minus the fee. Some lenders add it to the balance instead, so you receive the full amount but pay interest on the fee. Your loan agreement says which applies.
How much should I borrow if the fee is deducted?
Divide the amount you need by (1 − fee rate). To have $10,000 in hand after a 4% fee, borrow about $10,000 ÷ 0.96 = $10,417.
Is a lower rate with a fee better than a higher rate without one?
Not always. Over 36 months, $10,000 at 9% with a 6% fee has an APR of about 13.28% and costs $2,048, while 11% with no fee has an 11% APR and costs $1,786. Compare the APR or the total cost, not the rate.