How this personal loan calculator works
Enter the amount you want to borrow, the APR from a prequalified offer, a term between one and seven years, and the month of your first payment. The calculator returns your fixed monthly payment, the total interest you'll pay, and the month your loan will be paid off.
Personal loans are amortized like any installment loan: each payment covers the month's interest first, and the rest reduces your balance. The chart and schedule show your balance falling over time.
Use the optional extra payment to see how quickly you can finish early, or turn on Compare to weigh a three-year term against a five-year one.
The loan payment formula
Fixed-rate installment loans use the standard amortization formula, which sets one payment that clears interest and principal exactly by the final month:
M = P × [ r(1 + r)^n ] / [ (1 + r)^n − 1 ]
- M = monthly payment
- P = amount financed
- r = monthly interest rate (APR ÷ 12)
- n = number of monthly payments (years × 12)
- Each month: interest = balance × r; principal = M − interest (+ any extra payment)
Worked example
Borrowing $15,000 at 12.5% APR for three years produces a payment of about $502 and roughly $3,065 in total interest. Stretching the same loan to five years lowers the payment to about $337, but total interest climbs to around $5,250 — about $2,185 more for the lower payment.
If that $15,000 replaces credit card balances charging 24%, the three-year loan still costs far less than paying the cards at the same monthly amount, because the rate is roughly half.
What a personal loan is — and isn't — for
A personal loan is an unsecured installment loan: you receive a lump sum and repay it in equal monthly payments over a fixed term, typically one to seven years. Because no collateral backs it, the rate depends heavily on your credit score, income and existing debt.
Personal loans work best for a defined, one-time need — consolidating high-interest card debt, a necessary home repair or a medical bill — where a fixed payoff date helps. They are a poor fit for ongoing spending or anything you could save for in a few months.
Consolidating credit card debt
Consolidation replaces several revolving balances with one fixed-rate loan. It saves money only if the new APR, including any origination fee, is meaningfully lower than the weighted rate on your cards, and only if the cards don't fill back up. Compare the total interest here with the result from our credit card payoff calculator at the same monthly payment.
Keep the paid-off cards open if they have no annual fee: closing them can reduce your available credit and raise your utilization ratio, which can lower your score.
Origination fees and how they change the math
Many online lenders charge an origination fee, often between 1% and 10% of the loan, deducted from what you receive. If you need $15,000 in hand and the fee is 5%, you would need to borrow about $15,790. Always compare offers on APR, which includes the fee, and on the total of all payments.
Getting a better rate
Prequalify with several lenders — banks, credit unions and online lenders — using soft credit checks that don't affect your score. Credit unions are capped by federal rules at 18% APR on most loans, which makes them worth checking if your credit is fair. Paying down card balances before you apply, adding a creditworthy co-borrower or choosing a shorter term can all lower your rate.
Be wary of offers that guarantee approval, ask for upfront payment or pressure you to decide immediately. Legitimate lenders disclose the APR, fees and total cost in writing before you accept.
Choosing the right term
Pick the shortest term with a payment you can comfortably afford alongside regular savings. Lenders commonly price longer terms higher, so the five-year option often costs more per year as well as for longer. If income is variable, a longer term with planned extra payments keeps the required payment low while letting you finish early in good months.
Frequently asked questions
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Open calculatorNot financial advice. ClearCalc provides estimates for educational purposes only. Results depend on the assumptions you enter and may differ from offers from lenders or institutions. Consult a qualified professional before making financial decisions.