Personal Loan Calculator
Calculate monthly payments, total cost, and interest for unsecured personal loans
Calculate Personal Loan Payment
Principal amount you want to borrow
Length of time to repay the loan
Yearly interest rate offered by the lender
Loan Payment Results
Loan Summary
Affordability Metrics
Interest Rate Analysis
Example Calculation
Sample Personal Loan
Loan Amount: $10,000
Term: 3 years (36 months)
Interest Rate: 8.5% APR
Formula:
M = P × (r/12) / (1 - (1 + r/12)^(-n))
Result
Monthly Payment: $315.00
Total Interest: $1,340
Total Amount: $11,340
Personal Loan Tips
Compare Multiple Lenders
Shop around for the best rates and terms
Check Your Credit Score
Higher scores qualify for better rates
Consider Shorter Terms
Lower total interest cost
Avoid Prepayment Penalties
Choose loans that allow early payoff
Budget for Payments
Keep debt-to-income below 36%
Understanding Personal Loans
What is a Personal Loan?
A personal loan is an unsecured loan that allows you to borrow money for various personal expenses without requiring collateral. These loans have fixed interest rates and predetermined repayment terms, making them predictable and manageable.
Common Uses
- •Debt consolidation
- •Home improvements
- •Medical expenses
- •Wedding or vacation costs
- •Emergency expenses
Monthly Payment Formula
M = P × (r/12) / (1 - (1 + r/12)^(-n))
- M: Monthly payment
- P: Principal loan amount
- r: Annual interest rate (as decimal)
- n: Total number of months
Advantages
- ✓Fixed interest rates
- ✓Predictable monthly payments
- ✓No collateral required
- ✓Quick approval process
Factors Affecting Interest Rates
- •Credit Score: Higher scores get better rates
- •Income: Stable, higher income improves rates
- •Debt-to-Income Ratio: Lower ratios preferred
- •Loan Amount: Larger loans may have better rates
- •Loan Term: Shorter terms usually have lower rates
Before You Apply
- ⚠️Check your credit report for errors
- ⚠️Calculate your debt-to-income ratio
- ⚠️Compare rates from multiple lenders
- ⚠️Consider the total cost, not just monthly payment
- ⚠️Read all terms and conditions carefully