How to use the Personal Loan calculator
- Enter your numbers. Fill in loan amount, interest rate, term, origination fee.
- Read your results. Results update instantly. The headline shows the monthly payment; the breakdown and table below show the details.
Why origination fees matter
Many personal lenders charge an origination fee of 1%–10%, usually deducted from the money you receive. You still repay the full loan amount, so the effective rate (APR) is higher than the stated interest rate. This calculator solves for the APR that makes your payments equal to the cash you actually receive.
The formula
APR = rate r such that payment(Amount − Fee, r, n) = M
where M is the monthly payment, P the amount borrowed, r the monthly interest rate (APR ÷ 12) and n the number of monthly payments. Each month, interest is charged on the remaining balance and the rest of the payment reduces principal, so early payments are mostly interest and later payments are mostly principal.
Comparing offers
A 10% loan with a 5% fee over 3 years has a true APR of roughly 13.5%, which is worse than a 12.5% loan with no fee. Always compare APR and total cost, not just the rate.
Worked example
With these inputs: loan amount$15,000; interest rate12%; term36 months; origination fee3%.
The calculator gives a monthly payment of $498.21 (true APR including fee: 14.13%). Other results: you receive$14,550, origination fee$450, total interest$2,936, total cost (interest + fee)$3,386.
What your results mean
The true APR includes the origination fee taken out of your loan proceeds. When it is well above the stated rate, the fee is a large part of the cost. Use APR, not the rate, to compare lenders.
Tips
- Prequalify with several lenders; most use a soft credit pull.
- If you need a specific amount in hand, borrow enough to cover the fee deducted upfront.
- Avoid optional credit insurance add-ons unless you have compared the cost.
Frequently asked questions
What is an origination fee on a personal loan?
A one-time fee, typically 1% to 10% of the loan, usually subtracted from the money you receive. You still repay the full amount, which is why it raises the APR.
How much is a $15,000 personal loan per month?
At 12% over 3 years, about $498 per month. A 5-year term lowers that to about $334 but adds interest.
What is a good personal loan rate?
It depends on your credit. Borrowers with excellent credit often see single-digit to low-teens APRs; fair credit can mean 20%+.
Does checking my rate hurt my credit?
Prequalification usually uses a soft pull that doesn’t affect your score. The final application is a hard inquiry.
Can I use a personal loan to pay off credit cards?
Yes. Consolidating at a lower APR can save money. Compare with the debt payoff calculator.
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