Personal Loan Calculator

What Is a Personal Loan?

A personal loan is an unsecured installment loan that allows you to borrow a lump sum of money and repay it in fixed monthly payments over a set period. Unlike a credit card, a personal loan has a fixed interest rate and a defined repayment timeline, making it easier to budget. Personal loans can be used for almost any purpose — debt consolidation, home improvement, medical expenses, major purchases, or unexpected emergencies.

Personal Loan vs. Credit Card

Personal loans typically offer lower interest rates than credit cards, especially for larger amounts. If you carry credit card debt at 20–29% APR, consolidating with a personal loan at 10–15% can save significant money in interest. Personal loans also have a fixed payoff date, which provides a clear path to becoming debt-free — unlike revolving credit card debt that can drag on indefinitely.

What Affects Your Personal Loan Rate?

Your credit score is the biggest factor in determining your APR. Lenders also consider your income, employment status, existing debt, and the loan amount and term. Borrowers with stable income, low debt-to-income ratios, and high credit scores consistently qualify for the lowest rates. Shopping with multiple lenders — ideally using pre-qualification with soft credit checks — is the best way to find the most competitive rate.

Watch Out for Origination Fees

Many personal loan lenders charge an origination fee of 1–8% of the loan amount. This fee is either deducted from your loan proceeds or added to your loan balance. A low interest rate with a high origination fee can actually cost more than a slightly higher rate with no fee. Always calculate the total cost of the loan — principal plus all fees plus total interest — when comparing offers. This calculator includes an origination fee field so you can see the true total cost.

Frequently Asked Questions