Personal Loan Interest Calculator
Compare credit loan interest rates by FICO score across credit unions, banks, and online lenders. Calculate monthly payments and total interest with amortization schedule.
Enter loan details to see results automatically.
Loan Calculation Results
Repayment Schedule
| Month | Payment | Principal | Interest | Balance |
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Rate Comparison by Lender
Detailed Comparison
| Item | Credit Union | Bank | Online Lender |
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APR Ranges by Credit Tier
| Credit Tier | Score Range | Credit Union | Bank | Online Lender |
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What is a Personal Loan Calculator?
A personal loan calculator is a financial tool that helps you estimate the monthly payments, total interest, and overall cost of an unsecured personal loan. By entering your desired loan amount, annual percentage rate (APR), and repayment term, you can instantly see how much you’ll pay each month and over the life of the loan.
Personal loans are one of the most common forms of consumer credit in the United States. Unlike mortgages or auto loans, personal loans are typically unsecured, meaning they don’t require collateral. Instead, lenders evaluate your creditworthiness based on your FICO credit score, income, debt-to-income ratio, and other financial factors to determine your eligibility and interest rate.
This calculator features two powerful modes: a detailed loan calculator that generates a complete amortization schedule with Excel export capability, and a rate comparison tool that shows estimated APR ranges from credit unions, banks, and online lenders based on your FICO credit score tier. Whether you’re consolidating debt, financing a major purchase, or covering unexpected expenses, this tool helps you make informed borrowing decisions.
All personal loans in the US market use fixed-rate amortization, where your monthly payment remains the same throughout the loan term. Each payment covers both principal and interest, with the interest portion decreasing over time as your balance declines. This calculator also accounts for origination fees, which many lenders charge as a percentage of the loan amount.
Who Should Use This Calculator?
- Borrowers comparing loan offers: If you’ve received multiple loan offers from different lenders, this calculator helps you compare the true cost of each option. Enter the APR and terms from each offer to see which one results in the lowest total cost, including origination fees. Even a small difference in APR can save you hundreds or thousands of dollars over the life of the loan.
- Debt consolidation planners: If you’re considering consolidating high-interest credit card debt into a personal loan, use this calculator to determine whether consolidation makes financial sense. Compare your current total monthly payments and interest costs against a single personal loan payment to see your potential savings.
- Budget-conscious borrowers: Before taking on a personal loan, it’s essential to know exactly how much your monthly payment will be. This calculator helps you find the right loan amount and term that fits comfortably within your monthly budget, ensuring you can make payments without financial strain.
- Credit score improvers: Use the Compare Rates mode to see how your credit score tier affects the interest rates available to you. This can motivate you to improve your credit score before applying, potentially saving you thousands of dollars. See exactly how much more you’d pay with a “Fair” score versus an “Excellent” score.
- First-time borrowers: If you’ve never taken out a personal loan before, this calculator helps you understand how loan amortization works. The detailed repayment schedule shows exactly how each payment is split between principal and interest, giving you a clear picture of how your balance decreases over time.
Key Features
- Instant amortization calculation: Enter your loan amount, APR, and term to instantly calculate your fixed monthly payment, total interest cost, total amount paid, and interest-to-principal ratio. Results update in real time as you adjust any input, making it easy to experiment with different scenarios and find the optimal loan terms for your situation.
- FICO credit score-based rate comparison: Select your FICO credit score tier (Excellent 800+, Very Good 740-799, Good 670-739, Fair 580-669, or Poor 300-579) to see estimated APR ranges from three types of lenders. This feature uses current market data to give you a realistic expectation of the rates you might qualify for based on your creditworthiness.
- Three-way lender comparison: Compare estimated rates and costs across credit unions, traditional banks, and online lenders side by side. Each lender type has different strengths: credit unions often offer the lowest rates to members, banks provide established relationships, and online lenders typically offer fast approval and funding. See which option saves you the most money.
- Origination fee calculation: Many personal loan lenders charge an origination fee (typically 1-8% of the loan amount) that’s deducted from your loan proceeds. This calculator factors in the origination fee so you can see the true total cost of borrowing, helping you compare loans with different fee structures accurately.
- Detailed repayment schedule: View a month-by-month breakdown of every payment throughout your loan term. The schedule shows exactly how much of each payment goes toward principal versus interest, and tracks your remaining balance. This transparency helps you understand the true cost of your loan and plan for early payoff if desired.
- Excel export: Download your complete repayment schedule and loan details as an Excel spreadsheet. This is perfect for record-keeping, sharing with a financial advisor, or integrating into your personal budget planning. The exported file includes both the amortization table and a summary of all loan parameters.
How to Use
Calculate Mode
- Enter the loan amount: Type your desired loan amount or use the quick-select buttons ($5K, $10K, $25K, $50K). The input automatically formats with commas and displays the dollar amount below the field for easy verification.
- Enter the APR: Input the annual percentage rate offered by your lender, accurate to two decimal places. If you’re unsure of current rates, use the quick-select buttons (5.0%, 8.0%, 12.0%, 18.0%) to explore typical rate levels for different credit tiers.
- Set the loan term: Enter the repayment period in years and additional months. For example, for a 3-year loan, enter 3 in the years field. Use the quick-select buttons (1yr, 2yr, 3yr, 5yr) for common loan terms. Most personal loans range from 1 to 7 years.
- Add origination fee (optional): If your lender charges an origination fee, enter the percentage (typically 1-8%). This fee is calculated on the loan amount and displayed separately in the results. Use the quick buttons (0%, 2%, 5%, 8%) for common fee levels. If there’s no fee, leave it at 0.
- Review results: Your monthly payment, total interest, total amount paid, and interest ratio appear instantly in the results panel. The condition summary shows all your loan parameters at a glance. Below that, the full repayment schedule shows every month’s payment breakdown, and you can export it to Excel.
Compare Rates Mode
- Switch to Compare Rates: Click the “Compare Rates” tab at the top of the input panel.
- Enter the loan amount: Enter the amount you wish to borrow. If you already entered an amount in Calculate mode, it will be automatically synced.
- Select your credit score tier: Choose your FICO credit score range from the dropdown menu. Options range from Excellent (800+) to Poor (300-579). If you’re unsure of your score, you can check it for free through most major banks or credit card providers.
- Set the loan term: Enter your desired repayment period. The term from Calculate mode syncs automatically, or you can adjust it here.
- Review comparison: Three lender cards show estimated APR ranges, monthly payments, and total interest for credit unions, banks, and online lenders. The detailed comparison table highlights the best values in green. Below that, the complete credit tier table shows rates for all score ranges so you can see how improving your credit could lower your costs.
Understanding Personal Loans
How FICO Scores Affect Your Rate
Your FICO credit score is the single most important factor in determining the interest rate you’ll receive on a personal loan. FICO scores range from 300 to 850 and are calculated based on five factors: payment history (35%), amounts owed (30%), length of credit history (15%), credit mix (10%), and new credit (10%).
Borrowers with Excellent credit (800+) typically qualify for the lowest rates, often between 4-12% APR depending on the lender type. Those with Good credit (670-739) may see rates from 10-19%, while Fair credit (580-669) borrowers often face rates of 14-32%. The difference can be substantial: on a $25,000 loan over 3 years, the difference between a 6% and 18% APR is over $5,000 in total interest.
APR vs. Interest Rate
The Annual Percentage Rate (APR) includes not just the interest rate but also certain fees charged by the lender, making it a more accurate measure of the true cost of borrowing. When comparing loan offers, always compare APRs rather than simple interest rates. Federal law (Truth in Lending Act) requires lenders to disclose the APR to help consumers make fair comparisons.
Understanding Origination Fees
An origination fee is a one-time charge that covers the lender’s cost of processing your loan application. It’s typically expressed as a percentage of the loan amount (1-8%) and is either deducted from your loan proceeds or added to your loan balance. For example, if you borrow $10,000 with a 3% origination fee, you’ll receive $9,700 but still owe $10,000.
Not all lenders charge origination fees. Credit unions and some online lenders often waive them, while traditional banks and certain online platforms may charge anywhere from 1% to 8%. When comparing loan offers, factor in the origination fee to understand the true cost. A loan with a lower APR but a high origination fee might cost more than a slightly higher APR loan with no fee.
Prepayment and Early Payoff
Most personal loans in the US allow prepayment without penalties, meaning you can pay off your loan early and save on interest. However, some lenders do charge prepayment penalties, so always check your loan agreement. If your loan has no prepayment penalty, making extra payments or paying more than the minimum each month can significantly reduce your total interest cost and shorten your loan term.
Debt-to-Income Ratio (DTI)
Lenders evaluate your debt-to-income ratio to determine how much you can afford to borrow. DTI is calculated by dividing your total monthly debt payments by your gross monthly income. Most lenders prefer a DTI of 36% or less, though some may approve loans with DTIs up to 43% or even 50% depending on other factors. Before applying for a personal loan, calculate your DTI to ensure you’re within an acceptable range and can comfortably afford the monthly payment.
Frequently Asked Questions
What credit score do I need for a personal loan?
There’s no universal minimum credit score for personal loans, as requirements vary by lender. However, most traditional banks require a FICO score of at least 660-670 (Good range). Credit unions may be more flexible, sometimes approving members with scores in the 580-650 range. Online lenders have the widest range, with some specializing in fair or poor credit borrowers (580+), though at significantly higher interest rates.
For the best rates (under 10% APR), you’ll typically need a score of 740 or above. Scores between 670-739 qualify for competitive rates from most lenders. Below 670, your options narrow and rates increase substantially. If your score is below 580, you may want to focus on improving your credit before applying, as available rates (28-36% APR) can make borrowing very expensive.
How does an origination fee affect my loan cost?
An origination fee directly increases the total cost of your loan. For example, on a $20,000 loan with a 5% origination fee, you’ll pay $1,000 upfront (typically deducted from your loan proceeds, so you’d receive $19,000). You still repay the full $20,000 plus interest, effectively increasing your borrowing cost.
When comparing loans, a lower APR with an origination fee isn’t always better than a slightly higher APR with no fee. Use this calculator to compare total costs: enter the same loan amount with different APR and fee combinations to see which results in the lowest total paid. As a general rule, origination fees above 5% are considered high, and many competitive lenders charge 1-3% or no fee at all.
Should I get a personal loan from a bank, credit union, or online lender?
Credit unions often offer the lowest interest rates because they’re nonprofit organizations that return profits to members. However, you must be a member to apply, and the application process may be slower. They’re ideal if you have an existing membership and want the best rate.
Traditional banks offer the convenience of in-person service and may offer rate discounts to existing customers with checking or savings accounts. Their rates tend to be moderate, and they may have stricter credit requirements than online lenders.
Online lenders typically offer the fastest application and funding process, sometimes disbursing funds within 1-2 business days. They often have more flexible credit requirements and may serve borrowers that banks turn away. However, rates can be higher, especially for lower credit scores. Many online lenders also charge origination fees.
The best approach is to get pre-qualified with multiple lenders (which only requires a soft credit pull) and compare the actual rates and terms offered to you. Use this calculator’s Compare Rates mode to estimate what each lender type might offer based on your credit score.
What is the typical term for a personal loan?
Personal loan terms in the US typically range from 1 to 7 years (12 to 84 months), with 2 to 5 years being the most common. The term you choose significantly affects both your monthly payment and total interest cost.
Shorter terms (1-2 years): Higher monthly payments but substantially less total interest. Best for borrowers who can afford larger payments and want to minimize borrowing costs. A $15,000 loan at 8% APR costs about $654/month over 2 years with $1,305 in total interest.
Medium terms (3-4 years): The most popular choice, offering a balance between affordable monthly payments and reasonable total interest. The same $15,000 loan at 8% costs about $469/month over 3 years with $1,698 in total interest.
Longer terms (5-7 years): Lowest monthly payments but significantly more total interest. Best for borrowers who need the lowest possible payment. The same loan costs about $304/month over 5 years but with $3,260 in total interest, nearly 2.5 times more than the 2-year option.
Can I pay off my personal loan early?
Most personal loans in the US can be paid off early without penalty, but this isn’t universal. Before signing your loan agreement, check for a prepayment penalty clause. Federal law doesn’t prohibit prepayment penalties on personal loans, though many states have regulations limiting them.
If your loan has no prepayment penalty, paying it off early is almost always beneficial because you’ll save on interest. For example, paying off a 5-year, $20,000 loan at 10% APR after just 3 years would save you approximately $1,200 in interest.
Strategies for early payoff:
- Make bi-weekly payments instead of monthly (results in one extra payment per year)
- Round up your payment to the nearest $50 or $100
- Apply windfalls (tax refunds, bonuses) directly to your loan balance
- Set up automatic extra principal payments each month
Use this calculator’s repayment schedule to see how your balance decreases over time, and plan your early payoff strategy accordingly.