Personal Loan Calculator
Calculate the true cost of a personal loan by entering the loan amount, annual percentage rate (APR), loan term in months, and any origination fee. This calculator uses the standard PMT (payment) amortisation formula required by federal lenders under Regulation Z. It shows your fixed monthly payment, net amount disbursed after fees, total interest paid over the loan term, and total cost including all fees. Personal loans are unsecured, fixed-rate loans commonly used for debt consolidation, home improvements, medical bills, or major purchases. Understanding your monthly payment and total interest cost upfront helps you compare offers from multiple lenders and determine whether a personal loan fits your budget. The calculator accounts for origination fees, which are one-time charges lenders deduct from your disbursement, typically ranging from one to eight percent of the loan amount. Paying your loan off early can reduce total interest costs, as interest accrues on the remaining balance each month.
A $10,000 personal loan at 11.5% APR for 36 months: monthly payment $329.76, total interest $1,871.36.
How the personal loan payment is calculated
The monthly payment uses the standard PMT (payment) formula from financial mathematics, the same formula lenders use to produce loan disclosures required under Regulation Z (12 C.F.R. Part 1026).
r = APR / 100 / 12 (monthly rate)
n = loan term in months
monthly payment = principal x r x (1 + r)^n / ((1 + r)^n - 1)
net disbursement = loan amount - origination fee
total paid = monthly payment x n
total cost = total paid + origination fee
Worked example
$10,000 loan at 11.5% APR, 36 months, $0 origination fee:
- r = 11.5 / 100 / 12 = 0.009583
- n = 36
- Monthly payment = 10,000 x 0.009583 x (1.009583)^36 / ((1.009583)^36 - 1) = $329.76
- Total paid = 329.76 x 36 = $11,871.36
- Total interest = 11,871.36 - 10,000 = $1,871.36
About origination fees and APR
If your lender charges an origination fee, they are required under Regulation Z to include it in the APR figure on your loan disclosure. This means the APR from your lender's Truth in Lending disclosure already reflects the fee. Enter the APR as stated on that disclosure and the fee separately to see both your net disbursement and the true total cost of the loan.
Understanding each figure
Monthly payment is the fixed amount due each month for the life of the loan. Personal loans are fully amortizing: each payment covers interest accrued that month plus a portion of the principal, so the balance reaches zero at the final payment.
Net disbursement is the actual amount deposited to your account after the origination fee is deducted. If no fee applies, the net disbursement equals the loan amount. You make payments on the full loan amount regardless.
Total interest is the sum of all interest charges over the loan term. A shorter term or lower rate reduces this figure significantly. Paying even a small amount extra each month can shorten the term and reduce total interest.
Total cost adds the origination fee to the total payments to give the complete out-of-pocket cost of borrowing. This is the most useful number for comparing loan offers that have different fee structures.
Why APR, not the sticker rate, tells the true story
The most common mistake with personal loans is comparing offers by their headline interest rate rather than the APR. Under Regulation Z, a lender that charges an origination fee must fold that fee into the disclosed APR, so a loan advertised at 9.99% interest with a 5% fee can carry an APR well above 11%. Two offers with identical monthly payments are not equal if one deducts a $500 origination fee from your disbursement: you still repay the full principal, but you received less cash up front, which quietly raises your effective borrowing cost.
There is a subtler trap in the numbers themselves. This tool treats the figure you enter as a nominal annual rate divided into 12 equal monthly periods, which matches how virtually every US installment lender amortizes a fixed-rate loan. Because interest is charged on the declining balance, most of your early payments go to interest, not principal. That is why paying even $50 extra each month shortens the term and cuts total interest far more than the small figure suggests.
One more point is worth checking: confirm whether your quoted rate is truly fixed. Personal loans are usually fixed-rate, but some lenders market low teaser rates or add optional insurance that inflates the balance. Enter the APR from your Truth in Lending disclosure, add the fee separately, and compare on the total cost figure, which is the only number that captures both the interest and the fee together.
Personal loan calculator: frequently asked questions
What is the average personal loan interest rate?
Personal loan rates vary significantly by credit score, lender type and loan amount. The CFPB publishes data on consumer credit at consumerfinance.gov. Compare offers from multiple lenders to find the best rate for your situation.
What can a personal loan be used for?
Personal loans are unsecured and can be used for many purposes: debt consolidation, home improvements, medical bills or major purchases. Check your lender's terms for any restrictions on use.
What is an origination fee on a personal loan?
An origination fee is a one-time fee charged by some lenders at loan disbursement, typically 1-8% of the loan amount. It reduces the net amount you receive but is usually included in the APR disclosure per Regulation Z (12 C.F.R. Part 1026).
How does a personal loan affect my credit?
Applying results in a hard inquiry on your credit report. The loan adds to your debt-to-income ratio, but consistent on-time payments build credit history over time. The CFPB explains credit scores at consumerfinance.gov.
Official sources
- CFPB, What is a personal loan?: consumerfinance.gov.
- CFPB, Regulation Z (Truth in Lending): 12 C.F.R. Part 1026.
Reviewed by the CalculatorHub team, edited by James Graham, 12 June 2026. See our methodology. General information, not financial advice.