Personal Loan Calculator

Calculate your monthly payment, true APR, and total cost of any personal loan.

🏷️ Personal Loan
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Total Interest
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Origination Fee
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Understanding Personal Loans

A personal loan is an unsecured installment loan — meaning no collateral required. You borrow a fixed amount, repay it in fixed monthly payments over a set term, and the interest rate is fixed (usually). They're one of the most versatile financial products available.

Common Uses

  • Debt consolidation — rolling multiple high-interest debts into one lower-rate loan
  • Home improvement — when a HELOC isn't available
  • Medical expenses — emergency or planned procedures
  • Large purchases — appliances, furniture, weddings

Origination Fees & True APR

Many lenders charge an origination fee of 1–8% of the loan amount, deducted upfront. This means if you borrow $15,000 with a 2% fee, you only receive $14,700 but repay $15,000. This makes the true APR higher than the stated interest rate. Always compare loans by APR, not just rate.

How to Get the Best Rate

Personal loan rates range from ~6% (excellent credit) to 36% (poor credit). To qualify for the best rates: have a credit score above 720, a low debt-to-income ratio, stable income history, and shop at credit unions (often lower rates than banks or online lenders).

FAQs

Most lenders require at least 580–640 to qualify. For the best rates (under 10%), you generally need 720+. Some lenders specialize in borrowers with lower scores but charge higher rates (up to 36%). Credit unions often have more flexible requirements and lower rates than traditional banks.
Often yes — if you qualify for a lower rate. Consolidating $10,000 at 24% APR to a personal loan at 11% saves thousands in interest and gives you a fixed payoff date. The key discipline: don't run the credit cards back up after consolidating.
Most personal loans allow early payoff. Some lenders charge a prepayment penalty (typically 1–2% of remaining balance) — always check before signing. Paying extra each month reduces your balance faster and saves interest, even if you don't pay it off early in full.
Applying causes a small hard inquiry (−5 points temporarily). If used for debt consolidation, your credit utilization drops — which can boost your score. Making on-time payments builds your payment history (the biggest credit score factor). On balance, a well-managed personal loan usually helps your credit score.

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