How to use this calculator
- Enter the amount you plan to borrow, the interest rate and the term in months.
- Enter the origination fee as a percentage. If the lender doesn’t charge one, enter 0.
- Read the result: your monthly payment, the true APR with the fee included, the cash you actually receive, and the total cost. The table compares other terms at the same rate.
Nothing you enter is sent anywhere: the math runs in your browser. Planning to use the loan to pay off cards or other debts? The debt consolidation calculator compares the loan with what you pay today.
Interest rate vs APR
A personal loan offer usually shows two numbers. The interest rate sets your monthly payment. The APR (annual percentage rate) also counts up-front fees, so it shows what the loan really costs per year.
Many lenders take the origination fee out of the loan before you get the money. You repay the full amount, but you receive less, which makes the effective rate higher than the interest rate. That’s why this calculator asks for the interest rate and the fee separately, then works out the APR itself. Use the APR when you compare offers from different lenders.
The formula behind the numbers
Monthly payment = Loan × r ÷ (1 − (1 + r)−n), where r = interest rate ÷ 12 and n = months
Origination fee = Loan × Fee %
You receive = Loan − Origination fee
Total cost = Total interest + Origination fee
The APR is the yearly rate at which your monthly payments, discounted back to today, are worth exactly the money you received. There’s no simple formula for it, so the calculator solves for it numerically, the same way lenders do.
Worked example
These are the numbers the calculator loads with: a $15,000 loan at 11.5% for 36 months with a 4% origination fee.
- Monthly payment: $494.64
- Origination fee: $600, so you receive $14,400.
- Total interest: $2,807. Total cost with the fee: $3,407.
- APR: 14.35%, nearly three points above the 11.5% interest rate.
To end up with the full $15,000 in hand, you’d borrow $15,625; the 4% fee then leaves exactly $15,000. Here’s how the term changes things at the same rate and fee:
| Term | Monthly payment | Total interest | Total cost | APR |
|---|---|---|---|---|
| 24 months | $702.60 | $1,863 | $2,463 | 15.64% |
| 36 months | $494.64 | $2,807 | $3,407 | 14.35% |
| 48 months | $391.34 | $3,784 | $4,384 | 13.70% |
| 60 months | $329.89 | $4,793 | $5,393 | 13.30% |
A longer term lowers the payment and the APR, because the fee is spread over more months. But the total cost still rises, since you pay interest for longer. Compare offers by APR, then choose the shortest term whose payment fits your budget.
Tips before you borrow
- Prequalify with several lenders. Many show estimated rates with a soft credit check that doesn’t affect your score.
- Look for no-fee lenders. A slightly higher rate with no fee can still have a lower APR.
- Check for prepayment penalties, so you can pay the loan off early if you’re able to.
- Borrow only what you need. Every extra dollar borrowed costs interest for the whole term.
Frequently asked questions
How is a personal loan payment calculated?
With the standard amortization formula, using the loan amount, the interest rate divided by 12, and the number of months. The payment stays the same every month; the interest part shrinks as the balance falls.
Why is my APR higher than my interest rate?
Because of the origination fee. You repay the full loan, but you received less money, so the effective yearly cost is higher. With no fee, the APR and the interest rate are the same.
Should I pick a longer term to get a lower payment?
Only if you need the lower payment to make your budget work. A longer term almost always costs more in total, and lenders often charge a higher rate for longer loans. The comparison table shows the trade-off.
What’s a typical origination fee?
It varies by lender and by your credit. Some lenders charge none, others charge several percent of the loan. Check the loan offer or ask the lender, and enter it here to see the effect on your APR.
Is my information saved or shared?
No. The calculator runs entirely in your browser. If you use “Copy link to results”, your numbers are stored only in that link, so share it only with people you trust.
This calculator is for education and planning. It assumes a fixed rate and on-time payments, and it isn’t financial advice. A lender’s figures may differ slightly because of rounding and how they charge fees.