Personal Loan Calculator
Calculate your monthly payments, compare loan terms, and understand the true cost of borrowing. Find the best personal loan for your needs.
Personal Loan Details
Typical range: $1,000 - $100,000
Current avg: 10.73% (excellent) - 29% (poor)
Optional: See how extra payments reduce interest and payoff time
Loan Summary
Amortization Schedule
What is a Personal Loan?
A personal loan is an unsecured loan that you repay in fixed monthly installments over a set term (usually 2-7 years). Unlike mortgages or auto loans, personal loans aren't backed by collateral—the lender relies on your creditworthiness to approve you.
Pros of Personal Loans
- Fixed rates and payments: Predictable monthly budget
- No collateral required: Don't risk your assets
- Quick funding: Often 1-7 days after approval
- Flexible use: Use for almost any purpose
- Lower rates than credit cards: For good credit
Cons of Personal Loans
- Higher rates than secured loans: No collateral = more risk
- Origination fees: Often 1-8% of loan amount
- Credit score impact: Hard inquiry on application
- Prepayment penalties: Some lenders charge them
- Debt trap potential: Easy access can lead to overborrowing
Debt Consolidation: The Most Popular Use
Nearly 40% of personal loans are used for debt consolidation. Here's when it makes sense:
If your personal loan rate is lower than your credit card rates (often 20%+)
Simplify multiple payments into one monthly payment
Know exactly when you'll be debt-free (vs. minimum payments forever)
Example: Credit Card Debt Consolidation
You have $15,000 in credit card debt at 22% APR with $300 minimum payments. At minimum payments, it takes 9+ years and costs $17,000 in interest. A 36-month personal loan at 12% has payments of $498 and total interest of $2,937. You save $14,000+ and are debt-free in 3 years instead of 9.
Personal Loan vs. Alternatives
| Option | Best For | Typical APR | Pros | Cons |
|---|---|---|---|---|
| Personal Loan | Large purchases, consolidation | 7-36% | Fixed rate, set payoff date | Origination fees possible |
| 0% APR Credit Card | Short-term purchases | 0% for 12-21 months | No interest if paid in time | Rate jumps after promo ends |
| HELOC | Homeowners, large amounts | 8-10% | Lower rates, tax-deductible | Risk losing your home |
| 401(k) Loan | Last resort option | Prime + 1-2% | Pay interest to yourself | Lose investment growth, tax penalties |
| Credit Card | Small, short-term needs | 15-29% | Convenient, rewards possible | High rates, no end date |
How to Get the Best Personal Loan Rate
1. Improve Your Credit Score
Even a 50-point improvement can drop your rate by 2-5%. Pay down credit card balances, dispute errors, and avoid new credit applications before applying.
2. Shop Multiple Lenders
Get quotes from at least 5 lenders. Most allow prequalification with a soft credit check. Compare APRs, not just interest rates (APR includes fees).
3. Consider a Co-Signer
A creditworthy co-signer can help you qualify or get a better rate. They're equally responsible for the loan, so choose carefully.
4. Choose a Shorter Term
Shorter terms often have lower rates because there's less risk for the lender. You'll also pay much less in total interest.
5. Try Credit Unions
Credit unions are nonprofit and often offer rates 1-2% lower than banks. Membership requirements are usually easy to meet.
6. Set Up Autopay
Many lenders offer 0.25-0.50% rate discounts for automatic payments. It also ensures you never miss a payment.
Personal Loan Fees to Watch For
Origination Fee
1-8%
Charged upfront or deducted from loan amount. On a $15,000 loan with 5% fee, you receive $14,250 but repay $15,000 plus interest.
Prepayment Penalty
Varies
Some lenders charge fees for paying off early. Avoid lenders with prepayment penalties—you should be rewarded for paying early, not penalized.
Late Payment Fee
$15-40
Charged if payment is late (usually 10-15 day grace period). Multiple late payments may also increase your rate or hurt your credit.
Frequently Asked Questions
What credit score do I need for a personal loan?
Most lenders require a minimum score of 580-620, but the best rates go to borrowers with 700+. Some online lenders work with scores as low as 560, but expect rates of 25-36%.
How much can I borrow with a personal loan?
Most lenders offer $1,000 to $50,000, with some going up to $100,000. Your approved amount depends on your credit score, income, and debt-to-income ratio. Generally, keep total debt payments under 36% of gross income.
How long does it take to get a personal loan?
Online lenders often fund within 1-3 business days. Banks and credit unions may take 1-2 weeks. Prequalification takes minutes, and most applications can be completed in 15-30 minutes.
Will applying hurt my credit score?
Prequalification uses a soft inquiry and doesn't affect your score. The formal application uses a hard inquiry, which may lower your score by 5-10 points temporarily. Multiple hard inquiries within 14-45 days typically count as one.
Should I pay off my personal loan early?
Yes, if your loan has no prepayment penalty. Paying early saves on interest. However, if you have higher-interest debt (like credit cards), pay those first. Also ensure you have an emergency fund before accelerating loan payments.