Last updated: May 2026
Calculate monthly payments, total interest, and payoff timeline for any loan type.
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| Month | Payment | Principal | Interest | Balance |
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Monthly payment formula: M = P × [r(1+r)^n] / [(1+r)^n − 1], where P = principal, r = monthly interest rate (annual rate ÷ 12), n = number of monthly payments.
Total interest = (Monthly Payment × n) − Principal. This represents the total cost of borrowing.
Typical rate ranges: Personal loans 6%–36%, Auto loans 4%–15%, Student loans 4%–8% (federal) or higher for private loans.
This calculator uses the same standard amortization formula used for mortgages, auto loans, and personal loans to compute your fixed monthly payment and total interest cost.
Where M is the monthly payment, P is the principal loan amount, r is the monthly interest rate (annual APR divided by 12), and n is the total number of monthly payments.
Worked example: $25,000 personal loan at 12% APR for 5 years (60 months): r = 0.01, n = 60. Monthly payment = $556. Total paid = $556 x 60 = $33,360. Total interest = $33,360 - $25,000 = $8,360. The APR is the single most important number to compare across loan offers — even a 2% difference on a $25,000 loan saves roughly $1,500 over 5 years.
The interest rate is the cost of borrowing the principal only. APR (Annual Percentage Rate) includes the interest rate plus fees (origination fees, closing costs, points), expressed as a yearly rate. APR is the true cost of the loan and is the correct number to compare across lenders. On a mortgage, the difference between the rate and APR can be 0.1-0.5%. On personal loans, origination fees of 1-6% can make the APR significantly higher than the stated rate.
A longer term lowers your monthly payment but dramatically increases total interest paid. On a $20,000 loan at 10% APR: a 3-year term costs $645/month and $3,222 in total interest. A 5-year term costs $425/month but $5,496 in total interest — 70% more interest for a 25% lower payment. Choose the shortest term your budget can comfortably handle.
Personal loan rates vary significantly by credit score. Excellent credit (750+): 6-12% APR. Good credit (700-749): 10-18% APR. Fair credit (650-699): 18-28% APR. Poor credit (below 650): 28-36%+ APR, or denial. Improving your credit score by even 50 points before applying can save thousands in interest over the loan term.
Paying off a loan early saves all remaining interest. However, check for prepayment penalties — some lenders charge 1-5% of the remaining balance for early payoff. Federal law limits prepayment penalties on mortgages but personal and auto loans vary. If there is no prepayment penalty, early payoff is almost always mathematically beneficial unless the rate is very low and you could earn more investing the money.
Your credit score is the single largest factor in the interest rate you'll receive on a personal loan. The difference between excellent and poor credit can mean paying double — or more — in total interest on the same loan amount. Before applying, pull your free credit report and address any errors.
Rates shown are representative averages across major online lenders and banks. Credit unions typically offer rates 1–3% below these averages for members. Always compare at least three offers using pre-qualification tools, which use soft credit pulls and won't affect your score.
| Credit Score | Rate Range | Typical APR | Monthly Payment ($10k/3yr) |
|---|---|---|---|
| 720–850 Excellent | 5–10% | 7.5% | $311 |
| 690–719 Good | 10–15% | 12.5% | $335 |
| 630–689 Fair | 15–20% | 17.5% | $359 |
| 580–629 Poor | 20–28% | 24% | $390 |
| Below 580 Very Poor | 28–36%+ | 32% | $424 |
What is APR on a personal loan?
APR (Annual Percentage Rate) is the true annual cost of borrowing, including both the interest rate and any lender fees such as origination fees (typically 1–8% of the loan amount). Because it captures the full cost, APR is the correct figure to compare across lenders — a loan with a lower interest rate but a 5% origination fee may actually cost more than a loan with a slightly higher rate and no fees. Always compare APRs, not just stated interest rates.
How does credit score affect loan rate?
Lenders use credit scores to estimate the probability you'll repay the loan. Higher scores signal lower risk, which lenders reward with lower interest rates. A difference of 100 points on your credit score can change your personal loan APR by 10–15 percentage points. On a $15,000 loan over 3 years, that translates to over $3,000 in additional interest. The fastest ways to improve your score: pay all bills on time, pay down revolving credit card balances, and dispute any errors on your credit report.
What is a good APR for a personal loan?
A good APR depends on your credit profile and the current rate environment. Generally, any rate below 12% APR is competitive for borrowers with good credit (690+). Rates below 8% are excellent and typically reserved for borrowers with very strong credit. If you're being offered a rate above 20% APR, consider whether you can delay borrowing to improve your credit, use a secured loan or credit union, or find a co-signer to reduce the rate.
What is the difference between a secured and unsecured loan?
An unsecured personal loan requires no collateral — approval is based purely on creditworthiness. A secured loan requires you to pledge an asset (savings account, car, or other property) as collateral. Secured loans typically carry lower interest rates because the lender has recourse if you default, but you risk losing the collateral. Unsecured loans are more common for personal borrowing and are safer for the borrower, though they carry higher rates.
Can you pay off a personal loan early?
Most personal loans allow early payoff, and doing so saves all remaining scheduled interest. However, some lenders charge a prepayment penalty — typically 1–5% of the remaining balance or a flat fee. Always check the loan agreement before paying off early. If there is no prepayment penalty, early payoff is almost always the right financial move unless your loan rate is very low and you have higher-return uses for the money, such as paying off higher-rate debt first.