Personal Loan Payment Calculator

Estimate your monthly payments based on loan amount, term and interest rate.

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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 are personal loans?

A personal loan is a loan that is paid back in equal installments over a set period of time. Interest rates are fixed, meaning they don’t change.

Although most personal loans are unsecured and do not require collateral, you can also find secured personal loans, which can offer you larger loan amounts and lower rates. Read more about the differences between secured and unsecured loans here.

How to get a personal loan

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.

Average interest rates on personal loans


The APR offered on your personal loan will have a major impact on its affordability. That’s why it’s so important to shop lenders. Two lenders may approve you for the same loan but offer different APRs that will affect your monthly payment and total loan costs.

Use the table below to see the average-offered APR for your credit score, according to LendingTree data:

Credit score rangeAverage APR
720+9.81%
680-71916.01%
660-67923.54%
640-65928.93%
620-63935.98%
580-61954.17%
560-57985.24%
Less than 560135.83%

To illustrate the differences in your personal loan cost, let’s assume you wanted to apply for a $5,000 personal loan with a three-year term and received three loan offers with the following APRs: 7.6%, 11.9% and 18.5%. By plugging this information into our personal loan payment calculator, you would see the following information:

Cost estimates for a $5,000 loan repaid over three years

APR7.6%11.9%18.5%
APR7.6%11.9%18.5%
Monthly payment$155.76$165.83$182.02
Total interest paid$607.39$969.98$1,552.67
Total loan cost$5,607.39$5,969.98$6,552.67

As you can see, the difference between the cost of borrowing the loan with a 7.6% and 11.9% APR is significant; you’d save $362.59 in interest over the life of your loan by qualifying for the lower rate, and your monthly payment would be about $10 cheaper. Your savings would be much higher when compared with the third loan offer.

How to compare personal loan offers

APR isn’t the only element to consider when shopping for a personal loan. You may want to also examine a few other factors when comparing lenders and loan options:

  • Borrowing limits: Lenders can have higher or low borrowing limits. Make sure the lender you’re shopping with offers the loan amount you need. A high minimum borrowing limit could lead you to borrow more than you planned, forcing you to pay interest on money you didn’t need.
  • Repayment terms: Some lenders may adjust the availability of repayment terms for your loan based on the amount you apply for. This could leave you with a shorter or longer repayment term than you’d prefer. A short repayment term means a higher monthly payment, while a longer one would result in higher overall interest costs.
  • Fees: Extra fees, such as an origination fee and prepayment penalty, can add to your cost to borrow. If you select a loan that has added fees, make sure you understand how they affect your loan affordability. The origination fee, however, is baked into the loan APR.
  • Credit requirement: When applying for a loan, lenders approve favorable interest rates based on the borrower’s creditworthiness. Before applying, it’s wise to determine the minimum credit requirements for approval. Lenders will also consider your income when reviewing your application.

Frequently asked questions

A personal loan can be used for just about anything, including debt consolidation, home improvement projects or medical bills. Lenders often have restrictions on loan use and commonly will not approve loans for secondary education or small business use, though this varies from lender to lender.

 

Ideally, you should use a personal loan for something you really need, rather than to finance a shopping spree.

Because a personal loan is backed only by your promise to repay it, lenders look for factors like a healthy credit score, a low debt-to-income ratio and stable employment history. If you have all of the above, you could be deemed a relatively low risk, which would help you qualify for a personal loan.

 

If you don’t qualify the first time around, you could either work on improving your credit score before reapplying or looking for a reliable cosigner who has a better score.

Yes, you can qualify for a personal loan with bad credit. However, it might be harder to receive approval since lenders consider borrowers with bad credit to be of higher risk of missing payments. Even though some lenders will approve borrowers with bad credit, they may charge a higher origination fee and offer rates into the triple digits, depending on your credit.

 

For a more affordable loan, you could seek out a cosigner or joint borrower. A secured loan, which requires collateral like your car or savings, can also be a good alternative to an unsecured personal loan. Just remember: If you get a secured loan and fall behind on payments, you risk losing your collateral.

 

You can find bad-credit personal loans through online lenders, banks and credit unions. Since you’ll see less favorable terms from lenders, it’s even more important for you to compare personal loan interest rates, fees and discounts to ensure you’re receiving the most affordable personal loan for your situation.

If you end up paying off your loan earlier than within the fixed term, you could be charged a prepayment penalty. Because your lender would be losing out on the interest fees they would have been getting had you kept making payments until the end of the term, they might charge you this penalty to offset this financial loss.

 

While this kind of charge is most common in mortgages and car loans, make sure you read your loan agreement carefully to see whether it could be applicable to your personal loan, as well.

A personal loan may make sense if you can afford monthly payments for the entirety of the loan term, and if it costs less than other types of credit. For example, if you have high-interest credit card debt with multiple revolving balances, you can use a personal loan to consolidate the debt, ideally at a lower interest rate. Consolidating debt with a personal loan may make your debt payments more manageable since you only have to worry about one payment and be able to pay off the loan faster.

 

A personal loan may also be a viable solution if you use it to make home improvements to your home that increase the property’s value. This way, you can avoid racking up a large sum of credit card debt or using your home as collateral.

 

On the other hand, personal loans are not the right solution if you are simply using the funds for unnecessary discretionary spending, such as taking a vacation. Good financial habits are vital to resisting the temptation of a lump sum of cash deposited into your bank account, as well as responsibly using the funds for which they were intended and repaying them on time every month.

Find out if a personal loan is right for you