Personal Loan Calculator

How to use this personal loan payment calculator

If you’re looking to take out a personal loan but aren’t sure how much you can afford to borrow, this personal loan calculator can help you find the answer. Simply plug in the following information to our calculator to get started:

• How much is your loan amount? Enter the loan amount you expect to borrow. This loan calculator allows you to see your estimated monthly payment on a loan between $1,000 and $50,000.
• What is your estimated interest rate? Ideally, you should enter your expected annual percentage rate (APR). The APR takes your interest rate and fees, such as an origination fee, into account and is a better measure of your loan cost. If you’re unsure about the APR you may qualify for, you can read more about the average APR offered by credit score.
• What is your loan term? Choose the duration of time your loan issuer will give you to pay back the funds. This value is between three and seven years. A longer term translates to lower monthly payments but a higher overall loan cost.

What to do next

While getting a personal loan can be a straightforward process, here are a few helpful things you can do ahead of time.

Assess your creditworthiness

Unless you’re getting a secured loan, your creditworthiness is what determines your eligibility for a personal loan in the eyes of lenders. Your creditworthiness is determined by several factors, including your credit score, income and credit history. Lenders use this information to assess how likely you are to repay your debt.

Your credit score is calculated by the activity on your credit report, which can be viewed at AnnualCreditReport.com. Typically, your credit score is judged based on the following factors:

• Payment history
• How much you owe
• The length of your credit history
• The types of credit you use
• Any new forms of credit

Understand the application process

The application process of getting a personal loan will vary from lender to lender, but here’s what you can generally expect when applying for a loan.

1. Check if the lender offers prequalification services. Prequalifying for a loan allows you to see whether you’ll qualify with a lender, and if so, what your rates may look like without impacting your credit score. However, not all lenders offer this service, so be sure to check. During this process, you’ll submit an initial application that includes your personal information, income, credit score and reason for getting the loan.
2. Compare your loan offers with multiple lenders. Shopping around and receiving quotes from multiple lenders can help ensure you’re getting the best loan for you. Be sure to compare details like interest rates, loan lengths and fees. As long as you apply within a 14-day window, receiving multiple offers will not impact your credit score any more than receiving one.
3. Formally apply for a personal loan with a lender. Once you’ve decided to move forward with a certain lender, you’ll verify your information and fill out a formal application. You’ll need to provide the lender with documents such as W-2s and pay stubs to confirm your income, as well as a government-issued identification to verify your identity. During this process, you may have to submit to a hard-credit pull, which can temporarily damage your credit score by a few points.
4. Officially accept your personal loan. To do this, you’ll need to sign the official paperwork and wait for the lender to deposit your funds into your account. This can take anywhere from one to five days after you’ve been approved, depending on the lender.

Consider fees

When you take out a personal loan, you may have to pay certain fees, such as late fees or application fees.

One of the most common fees you should budget for is an origination fee. These fees usually fall between 1% to 8% of your loan amount and typically come out of the total balance of your loan.

For instance, let’s say you want a $5,000 loan but will need to pay a 5% origination fee. When your loan is disbursed, you’ll only receive $4,750, as your lender will take out $250 of your lump sum to cover the fee.

If you want to skip the fees, consider looking into no-fee personal loan lenders.