Principal vs. interest
How much of everything you repay is the amount borrowed versus interest. Updates as you change the inputs.
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Personal Loan Calculator
Explore repayment options for personal loans, compare terms, and estimate the total cost of borrowing before you sign a loan agreement.
Estimated monthly payment
$381
Loan amount$12,000
Total paid$13,716
Interest$1,716
Term36 months
What is a personal loan?
A personal loan is a fixed-rate, fixed-term installment loan you can use for almost anything, consolidating debt, a large purchase, or an emergency expense. You repay it in equal monthly payments over the term. This calculator estimates that payment, the total you will repay, and how much of the total is interest, so you can compare offers before you sign.
How it works
The payment is calculated with a standard amortization formula. Early payments are mostly interest; as the balance shrinks, more of each payment goes toward principal. A longer term lowers the monthly payment but keeps the balance out longer, so total interest rises.
M = P × [ r(1+r)^n ] / [ (1+r)^n − 1 ]
M = monthly payment
P = loan amount (principal)
r = monthly interest rate (APR ÷ 12)
n = total number of monthly payments
M = monthly payment
P = loan amount (principal)
r = monthly interest rate (APR ÷ 12)
n = total number of monthly payments
Worked example
For a $12,000 loan at 9.5% APR over 36 months:
| Item | Amount |
|---|---|
| Loan amount | $12,000 |
| Monthly payment | ~$384 |
| Total interest paid | ~$1,834 |
| Total repaid over 3 years | ~$13,834 |
Tips before you borrow
- Compare the total cost over the full term, not just the monthly payment, a low payment can hide a lot of interest.
- Check for origination fees and prepayment penalties, which change the true cost of the loan.
- Choose the shortest term you can comfortably afford to minimize total interest.
- If consolidating debt, make sure the new APR is genuinely lower than what you are replacing.
Frequently asked questions
How is a personal loan payment calculated?
From the loan amount, APR, and term using a standard amortization formula. Each payment covers that month's interest first, and the rest reduces principal.
What affects the payment most?
The loan amount, APR, and term. A larger amount or higher APR raises the cost; a longer term lowers the monthly payment but increases total interest.
Is a personal loan good for debt consolidation?
It can be, if the new APR is lower than your current balances and you can repay on a manageable schedule without running the debt back up.
Does a shorter term save money?
Usually yes, the balance runs at interest for less time, so you pay less overall even though the monthly payment is higher.
Should I compare APR only?
APR is a good start, but also compare total cost over the term and watch for origination fees and prepayment penalties.
Can I pay it off early?
Often yes, and extra payments to principal cut total interest. First confirm there's no prepayment penalty.