How to use the personal loan calculator
- Enter the amount you want to borrow, the interest rate from the loan offer and the term in months.
- Enter the origination fee as a percentage or an amount, and choose whether it is deducted from the loan, added to it or paid in cash.
- Read the monthly payment, total interest and the estimated APR that includes the fee.
- Check the charts and the yearly or monthly schedule, then download the schedule as CSV if you need it.
Worked example
$10,000 at 10% for 36 months with a 5% fee deducted
The monthly payment is $322.67 and total interest is $1,616.20. Because the $500 fee is taken from the loan, you receive $9,500 but repay the full $10,000 plus interest, so the estimated APR is about 13.56%. Interest plus the fee comes to $2,116.20.
How it works
The payment uses the standard amortization formula M = P × r / (1 − (1 + r)−n) with r = annual rate ÷ 12. Interest each month is the balance × r, rounded to the cent, and the last payment absorbs rounding. The APR estimate solves for the rate at which the present value of the payments equals the cash you actually receive (loan amount minus fees paid upfront or deducted), using Newton’s method with a bisection fallback.
Assumptions
- Fixed rate for the whole term with equal monthly payments.
- The interest rate and fee are user-supplied values from your own loan offer.
- The APR shown is an estimate for comparison. Lenders calculate the disclosed APR under local rules that may include other charges.
Frequently asked questions
Why is the APR higher than the interest rate?
An origination fee means you receive less cash (or owe more) than the amount the interest rate is charged on. The APR folds that fee into a single annual rate so you can compare offers with different fees.
Is it better to have the fee deducted or added to the loan?
If the fee is added, you pay interest on it for the whole term. If it is deducted, you receive less cash. The APR is similar either way; choose based on how much cash you need in hand.
Does this use current personal loan rates?
No. No rates are fetched or assumed. Enter the rate from your own quote.
Can I pay a personal loan off early?
Many lenders allow it, but some charge a prepayment fee. Check your loan agreement before paying extra.
Limitations
- Does not model variable rates, payment holidays or prepayment penalties.
- Local APR disclosure rules can include costs this calculator does not know about.