Personal Loan Calculator
Updated · By the CalculatorDash editorial team · How we check our maths
Quick answer
A $10,000 personal loan at 12% APR over 36 months has a payment of about $332 and costs about $1,957 in interest. With a 5% origination fee you receive $9,500, so the total cost of borrowing is about $2,457.
How this calculator works
Personal loans are unsecured instalment loans: you get a lump sum and repay it in fixed monthly payments over a set term. Lenders often charge an origination fee, deducted from the money you receive, which raises the true cost above the headline rate.
This calculator shows the payment, the interest and the cash that actually lands in your account. If you need a specific amount in hand, increase the loan amount until 'cash you receive' matches it.
The formula
- Payment
- amount × r × (1 + r)^n ÷ ((1 + r)^n − 1), r = rate ÷ 12
- Cash received
- amount × (1 − fee)
- Cost of borrowing
- payment × months − amount + amount × fee
Worked example
Borrowing $10,000 at 12% for 36 months gives a payment of $332.14 and $1,957 of interest. A 5% fee means $500 is deducted, so you receive $9,500 and the loan costs about $2,457 in total.
Tips
- 01Compare APRs, which include fees, rather than interest rates alone.
- 02Pre-qualify with several lenders; most use a soft credit check that doesn't affect your score.
- 03Check for prepayment penalties before signing if you might repay early.
Frequently asked questions
How is a personal loan payment calculated?
With the standard amortisation formula using the loan amount, the monthly rate and the number of months.
What's the difference between interest rate and APR?
The interest rate is the cost of borrowing the money. The APR also spreads fees such as origination charges over the term, so it's the better number for comparing loans.
Can I pay off a personal loan early?
Most lenders allow it and you save the remaining interest, but check for prepayment penalties.
What can a personal loan be used for?
Common uses include consolidating debt, home improvements, medical bills and large purchases. Some lenders restrict uses such as education or business.