Personal Loan Calculator: Estimate Your Payments

How to Use MoneyGeek’s Personal Loan Calculator

Taking out a personal loan impacts your budget and financial well-being for years. It’s important to look at your loan terms and monthly payment so you can choose a loan that works for you. Here's how to calculate loan payments with MoneyGeek's personal loan calculator.

1
Enter the loan amount
This is the principal sum you intend to borrow. Personal loan amounts range from $1,000 to $100,000, depending on the lender and your creditworthiness.

Borrow what you need and can afford to repay. Borrowing too much creates financial strain, while borrowing too little might leave you short.
2
Enter the interest rate
This is the annual percentage rate (APR) you'll be charged for borrowing. Your credit score plays a huge role in determining this rate. A higher score usually results in a lower interest rate.

Get the APR directly from your loan offer or lender. Even small rate differences affect your monthly payments and total interest paid over the loan term.
3
Specify the loan term
This is the duration over which you'll repay the loan, in months or years. Shorter terms mean higher monthly payments but less total interest, while longer terms lower your monthly payments but cost more in interest overall.

Once you've entered all the required information, our personal loan calculator generates several important figures. These numbers show the financial implications and let you compare different loan options:

Monthly payment amount

The sum you'll need to pay each month. This figure shows whether the loan fits your monthly budget and which loan term length works best.

Total interest paid

All interest payments over the loan's life. This number shows the real cost of borrowing beyond the principal amount.

Total loan cost

The combined total of principal and all interest payments. The total shows your complete financial commitment and whether the loan fits your long-term financial goals.

Why Use a Personal Loan Calculator?

MoneyGeek's calculator shows your financial commitment before you borrow. See your monthly payment and total interest costs instantly. Test different scenarios by adjusting loan amounts, rates and terms. You'll find the best option for your budget and financial goals without guessing.

What Is a Good Personal Loan Rate?

The Federal Reserve reports average interest rates of 12.17% for 24-month personal loans as of August 2023. Credit unions averaged 10.02% on 36-month loans and banks averaged 10.75%, according to the National Credit Union Administration's March 2023 data. A good rate fits your budget and lets you pay off the loan within three to five years.

Your credit score drives your rate. Borrowers with higher scores qualify for lower rates and better loan terms. Lenders also weigh your debt-to-income ratio and income when setting the final number.

What to Consider When Applying for Personal Loans

Four factors determine what a personal loan actually costs:

Interest rate: APR is the clearest way to compare total cost across lenders. Rates vary based on your credit score, income and the lender's policies, so pull offers from multiple sources before committing.
Loan term: Longer terms lower your monthly payment but drive up total interest paid. Shorter terms cost more each month but save money over the life of the loan.
Fees and charges: Origination fees, late payment penalties and prepayment charges all add to your borrowing costs. Ask about every fee upfront and read the fine print before signing.
Loan amount: Borrow only what you need and can realistically repay. Taking more than necessary strains your budget and can limit your borrowing options down the road.
Your credit score: Higher scores unlock lower rates, better terms and more lender flexibility. Pull your credit report for errors and address any issues before applying.

What Are the Types of Personal Loans?

Personal loans come in several forms, each suited to different borrowing needs:

Unsecured personal loans

Unsecured personal loans are the most common type and don't require any collateral. Lenders decide approval based on your credit score and income. These loans usually have higher interest rates because they're not backed by assets, but you can get approved quickly and use them for almost any purpose.

Secured personal loans

Secured personal loans require collateral, such as a car or savings account. Collateral reduces the lender's risk and typically results in lower interest rates. However, you risk losing the asset if you default.

Debt consolidation loans

Debt consolidation loans are specialized loans that pay off multiple debts, such as credit cards, combining them into a single monthly payment. The goal is to secure a lower interest rate or more manageable payments. Crunch the numbers to ensure consolidation actually saves you money.

Co-signed Loans

If you have poor credit history or low income, a co-signed loan might be an option. Someone with better financial standing co-signs the loan, vouching for your repayment ability. This may get you a loan approval and lower rate, but the co-signer becomes responsible if you default, which strains personal relationships.

Fixed-rate loans

With fixed-rate loans, your interest rate stays the same for the entire loan term. This stability makes it easier to plan your budget and manage monthly payments. However, you'll miss out on lower rates if market interest rates decrease later.

Variable-rate loans

Variable-rate loans have interest rates that change based on market conditions. You'll benefit from lower rates when the market dips, but payments increase if rates rise. This type of loan offers potential savings but comes with more uncertainty.

Personal line of credit

Unlike a traditional personal loan that gives you a lump sum upfront, a personal line of credit lets you borrow funds as needed up to a set limit. This option works well for ongoing expenses or projects with uncertain costs. You'll only pay interest on the amount you use.

Where to Get Personal Loans

Compare lenders to find the best rates, terms and service for your needs.

1
Traditional banks
Traditional banks often offer competitive rates to borrowers with good credit, but approval standards are stricter. Existing customers get the added convenience of integrated online banking and consolidated account management.
2
Credit unions
Credit unions are not-for-profit, which often translates to lower rates and fees than banks. They also tend to offer more flexible lending terms and personalized service. Membership is usually tied to your location or employer.
3
Online lenders
Online lenders process applications faster than traditional institutions and some accept alternative data, like utility or rent payment history, which can benefit borrowers with lower credit scores. Check ratings and accreditation before applying.

Compare offers from multiple insurers. Choose based on your credit score and service preferences.

Personal Loan FAQ

Find answers to common questions about personal loans:

What is a personal loan?

A personal loan gives you a lump sum you repay in fixed monthly installments over a set term, usually 12 to 60 months or more. The interest rate is either fixed or variable, which affects your total repayment amount.

What can I use a personal loan for?

Personal loans can cover debt consolidation, home improvements, medical expenses or vacations. Borrow only for genuine needs since you're committing to repay the full amount with interest.

What are the fees associated with personal loans?

Beyond the interest rate, personal loans can carry origination fees, late payment fees and prepayment penalties. Ask lenders about every charge upfront and read the fine print before signing.

What is a good personal loan rate?

Personal loan rates average between 6% and 36%. Rates toward the lower end of that range mean less paid over the life of the loan.

Can I get a personal loan with bad credit?

Yes, but lenders charge higher rates and set stricter terms to offset the added risk.

Can I pay off my personal loan early?

Most lenders allow early payoff, though some charge a prepayment penalty to recover lost interest. Check your loan agreement or ask your lender directly before paying ahead of schedule.

Personal Loan Calculator