Personal Loan Calculator
Calculate monthly payments for personal loans, including total interest paid over the loan term. Compare different loan offers to find the best deal and understand the true cost of borrowing.
What is a Personal Loan?
A personal loan is an unsecured installment loan with fixed monthly payments over a set term. Unlike credit cards with revolving balances, personal loans have predictable payments and a clear payoff date. They can be used for almost any purpose, from debt consolidation to major purchases.
Personal loans typically have lower interest rates than credit cards (especially for good credit) but higher rates than secured loans like mortgages or auto loans. The lack of collateral means lenders rely heavily on creditworthiness when setting rates.
Personal Loan Overview
| Factor | Typical Range | Best Rates |
|---|---|---|
| Loan Amount | $1,000 - $100,000 | Varies |
| APR | 6% - 36% | 6% - 10% |
| Term | 12 - 84 months | 36 - 60 mo |
| Credit Score | 580+ | 720+ |
| Origination Fee | 0% - 8% | 0% - 2% |
Interest Rates by Credit Score
| Credit Score | APR Range | Example Rate |
|---|---|---|
| 720+ (Excellent) | 6.5% - 12% | 8.5% |
| 690-719 (Good) | 10% - 18% | 13% |
| 630-689 (Fair) | 15% - 24% | 18% |
| 580-629 (Poor) | 22% - 36% | 28% |
Monthly Payment Examples
| Loan Amount | APR | Term | Monthly Payment | Total Interest |
|---|---|---|---|---|
| $5,000 | 8% | 24 mo | $226 | $424 |
| $10,000 | 10% | 36 mo | $323 | $1,616 |
| $15,000 | 12% | 48 mo | $395 | $3,960 |
| $20,000 | 8% | 60 mo | $406 | $4,332 |
| $25,000 | 15% | 48 mo | $696 | $8,408 |
| $30,000 | 10% | 60 mo | $637 | $8,248 |
Personal Loan Uses
| Purpose | Average Loan | Typical APR |
|---|---|---|
| Debt Consolidation | $15,000 | 10-15% |
| Home Improvement | $20,000 | 8-14% |
| Medical Expenses | $8,000 | 10-18% |
| Major Purchases | $5,000 | 12-20% |
| Moving Costs | $3,000 | 10-16% |
| Wedding | $10,000 | 12-18% |
Implementation
``javascript
function calculateLoanPayment(principal, annualRate, months) {
const monthlyRate = annualRate / 100 / 12;
if (monthlyRate === 0) return principal / months;
const payment = principal *
(monthlyRate * Math.pow(1 + monthlyRate, months)) /
(Math.pow(1 + monthlyRate, months) - 1);
const totalPaid = payment * months;
const totalInterest = totalPaid - principal;
return { payment, totalPaid, totalInterest };
}
``
Personal Loan vs. Alternatives
Consider these alternatives before taking a personal loan: 0% APR credit card promotions for short-term needs, home equity loans for lower rates (if you own a home), 401(k) loans for emergency access to retirement funds, or negotiating payment plans directly with service providers. Personal loans work best when you need a fixed payment schedule and have good enough credit for competitive rates.