Personal Loan Calculator

How do I calculate my monthly personal loan payment?

To calculate your monthly personal loan payment, use the formula: M = P × [r(1+r)^n] / [(1+r)^n-1], where M is monthly payment, P is loan amount, r is monthly interest rate (APR ÷ 12 ÷ 100), and n is number of payments (years × 12). Our calculator does this automatically - just enter your loan amount, interest rate, and loan term above.

What is a good interest rate for a personal loan?

Personal loan interest rates typically range from 6% to 36% APR depending on your credit score:

• Excellent credit (720+): 6-10% APR
• Good credit (690-719): 10-18% APR
• Fair credit (630-689): 18-25% APR
• Poor credit (<630): 25-36% APR

Shop multiple lenders to find the best rate for your credit profile.

Should I get a personal loan or use a credit card?

Choose a personal loan for:

• Large, one-time expenses ($5,000+)
• Debt consolidation (especially high-interest credit cards)
• Fixed payment schedule over 2-7 years
• Lower interest rates (if you have good credit)

Choose a credit card for:

• Small, ongoing expenses
• Rewards and cashback opportunities
• Short-term needs you can pay off in 1-3 months
• 0% intro APR offers (pay off before promo ends)

What can I use a personal loan for?

Personal loans are versatile and can be used for:

• Debt consolidation: Combine multiple high-interest debts into one lower payment
• Home improvements: Renovations, repairs, or upgrades
• Medical expenses: Surgery, dental work, or emergency care
• Major purchases: Furniture, appliances, or electronics
• Wedding or event costs: Ceremonies, receptions, or honeymoons
• Moving expenses: Relocation, deposits, or moving services
• Emergency expenses: Unexpected costs or financial hardship

Not allowed for: Education expenses (use student loans), business expenses (use business loans), or illegal activities.

What is an origination fee on a personal loan?

An origination fee is a one-time charge (typically 1-6% of the loan amount) deducted from your loan proceeds before you receive the money. For example, if you borrow $10,000 with a 3% origination fee ($300), you'll receive $9,700 but still owe $10,000 plus interest.

Some lenders don't charge origination fees, so shop around. If comparing loans, factor the fee into the total cost - a slightly higher APR with no fee may be cheaper than a lower APR with a high fee.

Will applying for a personal loan hurt my credit score?

Soft credit pulls (rate shopping, pre-qualification) do NOT hurt your credit score. Hard credit pulls (formal application) may lower your score by 5-10 points temporarily.

Good news: Multiple hard pulls for personal loans within 14-45 days (depending on scoring model) count as ONE inquiry, so shop around without fear. After approval, making on-time payments will improve your credit over time.

How can I get the lowest personal loan rate?

To qualify for the lowest personal loan rates:

• Improve your credit score: Pay bills on time, pay down credit card balances, dispute errors on your credit report
• Show stable income: Lenders prefer 2+ years of employment and debt-to-income ratio under 40%
• Shop multiple lenders: Compare banks, credit unions, and online lenders (credit unions often have lower rates)
• Consider a co-signer: Someone with excellent credit can help you qualify for better rates
• Choose a shorter term: 2-3 year loans typically have lower rates than 5-7 year loans
• Enable autopay: Some lenders offer 0.25-0.50% rate discounts for automatic payments