Personal Loan Payment Calculator
A personal loan payment calculator shows the fixed monthly installment on an unsecured loan, given the amount borrowed, the annual interest rate and the repayment term. Personal loans are typically fixed-rate and fully amortizing, so every monthly payment is the same and the balance reaches zero at the end of the term. This calculator uses the standard amortization formula to find that level payment, then reports the total of all payments and the total interest you will pay over the life of the loan. Enter a 15,000 dollar loan at 11 percent over 3 years and the tool returns a monthly payment of about 491.08 dollars. Personal loans often carry higher rates than secured loans because there is no collateral, which makes the total interest figure especially worth checking before you commit. Comparing payments across different terms helps you balance a lower monthly cost against a higher total interest bill. Because the amortization math is fixed and the inputs are yours, every figure is computed deterministically with no rounding surprises. The complete formula and a worked example that reconciles exactly to the calculator above appear in full below, so you can reproduce the monthly payment by hand and check it against any lender quote.
A personal loan payment uses amortization: payment = L x r / (1 - (1 + r)^-n), with r the monthly rate and n the number of months. A $15,000 loan at 11% over 3 years costs $491.08 per month.
Personal loan amortization formula
payment = L x r / (1 - (1 + r)^-n)
L = loan amount, r = annual rate / 12 (as a decimal)
n = number of monthly payments = years x 12
The annual rate is divided by 12 for a monthly rate, then the amortization formula gives a level payment that repays the loan in full over the term. Each payment covers the month's interest plus some principal.
Worked example
A 15,000 dollar personal loan at an 11 percent annual rate over 3 years.
- Monthly rate r = 11% / 12 = 0.0091667
- Number of payments n = 3 x 12 = 36
- (1 + r)^-n = 1.0091667^-36 = 0.720158
- Payment = 15,000 x 0.0091667 / (1 - 0.720158) = 137.50 / 0.279842 = 491.08 dollars
These are the calculator's default inputs, so the result above matches the widget exactly.
Personal Loan Payment Calculator: frequently asked questions
How is a personal loan payment calculated?
By the amortization formula: loan amount times the monthly rate, divided by one minus (one plus the monthly rate) raised to minus the number of payments. The result is a fixed monthly payment that fully repays the loan over the term.
Why are personal loan rates higher?
Personal loans are usually unsecured, meaning there is no collateral the lender can claim, so they price in more risk through a higher rate. That makes the total interest figure here worth checking before you borrow.
What happens if I pay extra each month?
Extra payments reduce the principal faster, which cuts the total interest and can shorten the term. This calculator shows the scheduled payment; paying more than that, where allowed without penalty, saves interest.
Does this figure include fees?
No. It covers principal and interest only. Origination fees or other charges are separate; if your lender deducts a fee from the proceeds, you receive less than the loan amount but still repay the full amount entered.
How can I lower the monthly payment?
A lower rate, a smaller loan or a longer term each reduces the monthly payment. A longer term raises total interest, so use the total interest output to judge whether the lower payment is worth the added cost.
Official sources
- Loans, interest and borrowing basics: US Securities and Exchange Commission, Investor.gov. As at 25 June 2026.
Reviewed by the CalculatorHub team, edited by James Graham, 25 June 2026. See our methodology. This is general information, not financial, tax, legal or investment advice.