Personal Loan Calculator

How to use this calculator

Enter the loan amount you want to borrow, the interest rate the lender quoted, and the term in months. Then add the origination fee — a one-time charge many personal lenders deduct from the loan before they pay it out. The calculator instantly shows your fixed monthly payment, the cash you actually receive after the fee, your total interest plus fee, and the effective APR that reflects the real cost of borrowing.

How this is calculated

Your monthly payment uses the standard amortization formula on the full loan amount: M = A · r ÷ (1 − (1 + r)⁻ⁿ), where r is the monthly rate (annual rate ÷ 12 ÷ 100) and n is the number of months. Total interest is the sum of every payment minus the amount borrowed. The origination fee is taken from the loan up front, so the money you receive is the loan amount minus that fee. To find the effective APR, we solve for the monthly rate that makes the same payment schedule true against the smaller amount you actually pocketed — then annualise it. Because you repay interest on money you never received, the effective APR sits above the headline rate.

Educational estimate, not financial advice — see our disclaimer.

A worked example

Say you borrow $10,000 at 11% over 36 months with a 3% origination fee. The fee is $300, so you actually receive $9,700. Your monthly payment on the full $10,000 is about $327, and over three years you pay roughly $1,780 in interest. Add the $300 fee and the loan truly costs you around $2,080. Because you are paying that on the $9,700 you really got, the effective APR climbs to roughly 13% — about two points above the quoted 11%.

Why the fee matters

An origination fee makes a loan more expensive than its sticker rate suggests. A lender can advertise a low interest rate and then claw back margin through a fee deducted at closing. Two loans with identical rates can cost very different amounts once their fees differ. That is exactly why the law requires lenders to disclose an APR — a single number that folds the fee into the rate so borrowers can compare apples to apples. Our APR calculator lets you fold in other fees too.

How to compare loan offers

• Compare APRs, not rates — the APR captures fees; the headline rate does not.
• Check the total repaid — a longer term lowers the monthly payment but raises lifetime interest.
• Watch the fee structure — origination fees, late fees, and prepayment penalties all add up.
• Confirm what you receive — a fee deducted up front means you borrow more than you can spend.

Common mistakes to avoid

• Borrowing more to cover the fee — this raises both your payment and the interest you owe.
• Judging by monthly payment alone — a low payment over a long term can hide a high total cost.
• Ignoring the APR — it is the single best yardstick for the real price of borrowing.

Once you know the real cost, a debt payoff calculator can help you clear the balance faster.