Know your payment, and the real cost of borrowing.
Enter the loan once and see the whole picture: your fixed monthly payment, the total interest you will pay, how an origination fee shrinks the cash you actually receive and raises your true APR, plus a full month-by-month payoff schedule.
Your loan
Your loan at a glance
The numbers over time
Balance and interest paid
Principal vs interest each year
Each bar is one year of payments. Early on more of it is interest; the split tilts toward principal as the balance falls.
Key milestones
Full amortization schedule
Click any year to open its payments and see how principal grows while interest shrinks.
| Date | Payment | Principal | Interest | Balance |
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How personal loans work
How Personal Loan Payments Are Calculated
Personal loan payments are calculated using the standard amortization formula, which produces a fixed monthly payment covering both principal and interest over the loan term. The formula takes into account the loan amount, annual interest rate (converted to a monthly rate), and the total number of payments. For example, a $15,000 personal loan at 10.5% APR over 36 months results in a monthly payment of approximately $488, with total interest of about $2,560 over the life of the loan.
Personal Loan vs Credit Card Debt
Personal loans typically offer significantly lower interest rates than credit cards, making them a popular tool for debt consolidation. While credit card APRs average 20-25%, personal loan rates range from 6% to 18% for borrowers with good credit. Personal loans also have a fixed repayment schedule, which means your debt has a defined payoff date, unlike credit card minimum payments that can stretch repayment over decades. Consolidating $15,000 in credit card debt at 22% into a personal loan at 10.5% can save $3,000-$5,000 in interest.
How Your Credit Score Affects Your Rate
Your credit score is the single most important factor in determining the interest rate you receive on a personal loan. Borrowers with excellent credit scores (740 and above) typically qualify for rates between 6% and 10%, while those with fair credit (580-669) may see rates of 17% to 25% or higher. Improving your credit score by even 50 points before applying can result in meaningful rate reductions that save hundreds or thousands of dollars in interest over the loan term.
When a Personal Loan Makes Financial Sense
A personal loan makes financial sense when the interest rate is lower than your existing debt, when you need a fixed repayment schedule to stay disciplined, or when you need funds for a specific purpose like home improvement or medical expenses. It is generally not a good idea to use a personal loan for discretionary spending or investments with uncertain returns. Before borrowing, compare the total cost of the loan (including fees) against alternatives like a 0% APR balance transfer card or a home equity line of credit.
Common questions
What is a good interest rate for a personal loan?
Personal loan rates typically range from 6% to 36% depending on your credit score. Borrowers with excellent credit (740+) can qualify for rates between 6% and 10%, while fair credit (580-669) usually means rates of 17% to 25%.
How is my monthly personal loan payment calculated?
Monthly payments are calculated using the standard amortization formula: M = P[r(1+r)^n] / [(1+r)^n - 1], where P is the loan amount, r is the monthly interest rate, and n is the number of payments. This gives you a fixed payment that covers both principal and interest.
Should I choose a shorter or longer loan term?
Shorter terms have higher monthly payments but cost much less in total interest. For example, a $15,000 loan at 10.5% costs about $2,500 in interest over 36 months versus about $4,300 over 60 months. Choose the shortest term you can comfortably afford.
Can I pay off a personal loan early?
Most lenders allow early payoff, but some charge a prepayment penalty (typically 1%-5% of the remaining balance). Check your loan agreement before signing. Paying off early saves interest and is almost always worth it if there is no penalty.
Estimates for planning only. Actual payments depend on your exact rate, fees, day-count method and payment timing. Origination fees and other charges vary by lender. Confirm every figure with your lender before you rely on it.