Personal Loan Guide
A personal loan calculator helps you understand your loan repayment schedule and how different loan terms can affect your monthly budget and total interest paid over the life of the loan.
How to Use This Calculator
- Enter your loan amount: The total amount you need to borrow
- Input the interest rate: Annual percentage rate (APR) offered by the lender
- Specify the loan term: Number of months to repay the loan
- Select your loan purpose: This can affect interest rates and terms
Understanding Your Results
- Monthly Payment: Fixed amount due each month (principal + interest)
- Total Payments: All payments over the loan term
- Total Interest: Cost of borrowing the money
- Payoff Date: When your loan will be fully repaid
- Amortization Schedule: Detailed breakdown of each payment
Personal Loan Tips
- Shop around: Compare rates from multiple lenders including banks, credit unions, and online lenders
- Check your credit score: Higher scores qualify for lower interest rates
- Consider the total cost: Look beyond monthly payments to total interest paid
- Watch for fees: Origination fees, prepayment penalties, and late fees add to costs
- Make extra payments: Additional principal payments reduce interest and payoff time
- Avoid borrowing more than needed: Only borrow what you can comfortably repay
Important: Personal loans typically have fixed interest rates and payments, making them predictable for budgeting. However, they usually have higher rates than secured loans like mortgages or auto loans.