Personal Loan Calculator

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How to use our personal loan calculator

Written by Carol Pope | Edited by Amanda Push and Stephanie Cervone | Reviewed February 23, 2024

LendingTree’s personal loan calculator can help you see how much your loan could cost, including principal and interest. To use this powerful tool, input the following:

1. Loan amount

Start by entering how much you want to borrow. Many lenders offer personal loans up to $50,000, while some offer $100,000 or more to eligible borrowers.

2. Interest rate

Your interest rate is the percentage you’ll pay to borrow the loan amount. Borrowers with strong credit may be eligible for a lender’s lowest rates, while borrowers with bad credit can expect to pay a higher rate.

Interest rates are typically expressed as APR (annual percentage rate). APR includes both interest and any fees the lender charges.

3. Loan term

Your loan term is how long you have to repay your personal loan. Generally, it’s smart to select the shortest loan term you can comfortably afford. The longer your term, the more you’ll pay in total interest over the life of the loan.

3. Compare results

Once you’re finished, our personal loan calculator shows your principal amount, the total interest and your estimated monthly payment. For instance, let’s say you want to calculate your monthly payment on a $50,000 personal loan over seven years with a 12% rate. You can input those numbers and see that it comes out to a monthly payment of $883 and $24,141 in interest charges.

As you adjust your budget and shop for loans, you can play around with the calculator and compare offers. Use these numbers to determine which one is the best for you.

Why use a personal loan calculator?

A loan calculator can help you determine whether you can afford to take out a personal loan. Not only will borrowers have to repay the amount they borrowed, but they’ll have to pay their lender interest and fees. A personal loan calculator can break down how much interest you’ll pay over the loan term and help you compare offers.

What is a good personal loan rate?

A “good” personal loan rate is subjective. If you have bad credit, it can be hard to qualify for a personal loan at all. If you do qualify, your rate will probably not be a “good” one for someone with excellent credit.

If you want to see if your rate is competitive, we’ve got data that might help. Below, you’ll find average APRs for loans closed on LendingTree’s loan marketplace. Find your credit score and see how your personal loan rate compares.

Credit score range	Average APR	Average loan amount
720+	16.01%	$18,594
680-719	25.78%	$15,302
660-679	37.57%	$11,160
640-659	51.61%	$8,088
620-639	71.55%	$6,300
580-619	112.28%	$4,397
560-579	152.35%	$3,071
Less than 560	175.16%	$2,405

Source: LendingTree user data on closed personal loans for the fourth quarter of 2023.

How to calculate interest on a personal loan

Personal loans typically come with amortizing interest. This means that while your monthly payments will remain the same, over time, less and less of that monthly payment will go toward interest and more will go toward your principal until the loan is paid off.

Read these instructions on how to calculate interest on a loan to learn how much of your monthly payment will be applied to your interest versus the principal.

What to consider when calculating your personal loan payments

When shopping for a personal loan, keep the following in mind:

Credit score: Your credit score will determine the features, amounts, interest rates and loan terms you may be eligible for. The better your credit score, the higher your chances are to qualify for a lender’s lowest rates.
Loan use: The purpose of your loan can affect the what you’re eligible for, since some lenders only service loans for specific purposes. Some of the most common uses of personal loans include debt consolidation, credit card debt consolidation, home improvement loans and medical loans.
Rate shopping: For the best rates, look into personal loans at various types of lenders, including banks, credit unions and online lenders. Loan marketplaces like LendingTree allow you to compare multiple lenders at once.
Fees: Personal loans generally come with fewer fees compared to other forms of borrowing, but many lenders do charge an origination fee. These fees can get as high as 12.00% of your loan amount and are typically taken out of the total balance of your loan before you receive your funds.
Loan prequalification: You can prequalify for a personal loan with multiple lenders to get an idea of the rates and terms you may be eligible for. Then, plug in the potential rates, terms and amounts into the personal loan calculator to estimate your monthly payments and total cost over the lifetime of the loan.
Type of loan: There are two common types of personal loans: unsecured and secured. With an unsecured loan, you won’t need to offer lenders any valuable collateral. Secured loans, on the other hand, require collateral such as a vehicle or savings account. While secured loans are easier to qualify for and tend to come with lower rates than unsecured loans, lenders can seize your collateral if you’re unable to repay.
Customer service: LendingTree lender reviews can be an awesome resource if you are service minded. Search your lender by name, read real-life feedback and get a feel for the lender’s customer experience.

What to do next after you use our personal loan calculator

Now that you know how to research and understand personal loan offers, here’s what to do next.

Improve your creditworthiness

Having a healthy credit history is always a good idea — even more so when you’re shopping for a loan. Strong credit increases your chances of being approved for a personal loan at a lower rate. Continue to raise your credit score by paying down debts, paying bills on time and reviewing your credit reports for free.

Navigate the application process

Applying for a personal loan can be different with each lender, but here’s what you can generally expect.

Prequalify if possible. As mentioned earlier, prequalifying for a loan is the best way to learn if you will be approved for a loan with a lender — and if so, what your rates may look like. Prequalifying is when a lender reviews your basic financial information — without a hard credit inquiry — and estimates your loan terms. Not all lenders offer this service.
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. Compare details like interest rates, loan lengths and fees, and use our personal loan calculator to view possible monthly payments. As long as you apply within a 14-day window, receiving multiple offers will not impact your credit score any more than receiving one.
Formally apply for a personal loan. Once you decide 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 lower your credit score by a few points.
Officially accept your personal loan. To close on your loan, 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.

How much of a personal loan can I afford?

How much you can borrow will depend on your financial position and how much flexibility you have in your budget. You’ll need to weigh your income versus your expenses.

Bear in mind that lenders base how much you’re able to borrow on factors such as income, employment, credit score, repayment history, your debt-to-income ratio (DTI) and how you plan to use the money.

Frequently asked questions

The monthly payment amount for a $15,000 loan depends on factors such as your interest rate and repayment term. The higher your interest rate, the higher your monthly payment will likely be. Note that a long-term personal loan may come with lower monthly payments than a shorter loan.

For instance, a three-year $15,000 loan with a 12% interest rate will come with an estimated monthly payment of $498. The same loan with a five-year term comes with a $334 monthly payment.

Yes — most personal loan lenders allow you to pay off your loan early without charging a prepayment penalty. This type of fee is more common among mortgage companies, but it’s a good idea to check with your lender before repaying your personal loan early.

You may still qualify for a personal loan if your credit needs some work, but it can be difficult. If you need a loan before you have a chance to improve your credit score, you can apply for a bad credit personal loan with a reputable lender. However, you’re likely to pay a high interest rate if you’re approved.