Personal Loan Calculator
Estimate your monthly payment and total cost for a personal loan.
$494.64
monthly payment
Loan Amount
$15,000
Total Paid
$17,807
Total Interest
$2,807
Interest %
18.7%
Formula
Uses the standard amortization formula to calculate monthly payment based on principal, interest rate, and term.
M = P × [r(1+r)^n] / [(1+r)^n - 1]
Worked Example
You borrow $15,000 at 11.5% APR for 36 months:
- Loan amount: $15,000
- Monthly interest rate: 11.5% ÷ 12 = 0.958%
- Monthly payment: $495
- Total paid: $17,807
- Total interest: $2,807
Common Questions
What's the difference between a personal and auto loan?
Personal loans are unsecured (no collateral), so they have higher rates. Auto loans use the car as collateral, allowing lower rates. Personal loans offer more flexibility on how you use the money.
Why do shorter terms save interest?
A 24-month loan has fewer months to accrue interest than 60 months. Though payments are higher, total interest paid is significantly less.
Can I get a lower rate?
Yes. Shop multiple lenders, improve your credit score, borrow less, or shorten the term. Even a 1% rate difference saves hundreds.
Key Takeaways
- Shorter loan terms (24–36 months) save thousands in interest vs. longer terms (60+ months).
- A personal loan at 11.5% should be a last resort—explore credit cards (if you can pay off quickly) or credit unions first.
- Making extra payments cuts the term and interest significantly.