Personal Loan Payment Calculator — Monthly Payment & Total Interest
A personal loan's price has two parts: the monthly payment and the total interest, and the term moves both in opposite directions. This calculator shows the payment for your numbers and lays out the 1-to-5-year trade side by side.
The most common mistake is choosing the longest term the lender offers. It makes the monthly number feel good and quietly doubles what the loan costs.
How the payment is built
Every payment is split between interest and principal. Early payments are mostly interest — on a $15,000, 12%, 5-year loan the first payment's interest portion is $150, more than a fifth of the payment. Over time the split flips, and the final payments are almost all principal.
Total interest is simply (payment x number of months) minus the amount borrowed. That is the number the term comparison below is built around.
The term trade, in numbers
The table under the calculator shows the same loan at 1 through 5 years. Shorter terms raise the monthly payment but cut total interest sharply — often by half or more between 2 and 5 years. Longer terms do the reverse.
A useful rule of thumb: choose the shortest term you can pay without strain, not the longest you are approved for. The monthly difference between terms is usually small; the total-cost difference is not.
What else changes the real cost
Origination fees (commonly 1-8% of the amount) reduce what you actually receive or are added to the balance, and they raise the true APR even when the quoted APR looks fine. Prepayment penalties, where they exist, change the payoff math — most personal loans carry none.
If you expect to pay the loan off early, a longer term is a safety net, not a plan. The calculator's numbers assume you pay the full schedule.
Assumptions
- Fixed-rate loan, standard amortization (see methodology).
- Quoted APR used as-is; origination fees not included in the payment figure.
- No prepayment assumed.
- Terms beyond 5 years follow the same math — the table shows 1-5 as the common range.
Frequently asked questions
How is a loan's monthly payment calculated?
Standard amortization: M = P x r(1+r)^n / ((1+r)^n - 1), where P is the principal, r the monthly rate (APR / 12), and n the number of months. The methodology page has the full formula.
What is a good APR for a personal loan?
It tracks your credit profile. Lenders commonly quote from the low single digits for top-tier credit to 30%+ for higher-risk borrowers. If your offer is well above what you see quoted to comparable credit, that is a reason to shop or negotiate.
Should I choose a shorter or longer term?
Shortest you can comfortably afford. Total interest falls sharply with term. The calculator's table shows the exact trade for your numbers.
Do I pay more interest early in the loan?
Yes — in standard amortization the early payments are weighted toward interest because the balance (and thus the interest charge) is largest. The principal share grows every month.
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