How to use the Personal Loan Calculator
- 1 Enter the loan amount you are approved for.
- 2 Enter the interest rate quoted by the lender.
- 3 Choose the term in years.
- 4 Enter the origination fee as a percentage, then compare the monthly payment and the true APR.
Worked example
$15,000 at 12% over 3 years with a 5% origination fee. The monthly payment is $498.21, and the 36 payments total $17,935.73, so interest is $2,935.73. The fee of $750 means you receive only $14,250, which makes the real cost $3,685.73 and the true APR about 15.61%.
Features
True APR with fees
Calculates the APR that includes an origination fee taken from the loan.
Full cost
Monthly payment, total interest, total of payments and cost including the fee.
Cash received
Shows how much reaches your account after the fee is deducted.
Any term
One to seven years, the range most lenders offer.
When to use it
Comparing offers
Compare a low-rate loan with a high fee against a higher rate with no fee.
Debt consolidation
Check that a new loan is cheaper than your current credit card interest.
Budgeting
Make sure the monthly payment fits your budget before applying.
Choosing a term
See how a shorter term raises the payment but cuts total interest.
Frequently asked questions
What is an origination fee?
A one-time fee, often 1% to 10% of the loan, that many lenders deduct from the money they send you. You still repay the full loan amount.
Why is the true APR higher than the rate?
Because you pay interest on the full amount but receive less cash after the fee. The APR spreads the fee over the loan so you can compare offers.
What is a good personal loan rate?
Rates depend on your credit score, income and debts. Borrowers with excellent credit may see single-digit rates, while fair credit can mean 20% or more.
Does a longer term save money?
No. A longer term lowers the monthly payment but increases total interest.
Can I pay off early?
Most personal loans allow early repayment without penalty, which cuts total interest. Check the loan agreement.
Is the payment fixed?
Most personal loans have a fixed rate and fixed monthly payment for the whole term.
How can I borrow enough after the fee?
If you need a set amount in hand, divide it by one minus the fee rate. To receive $15,000 with a 5% fee, borrow about $15,789.
Does checking my rate hurt my credit?
Most lenders show rates with a soft credit check that does not affect your score. A full application uses a hard check, which can lower your score by a few points for a short time.
Personal loan or credit card?
A personal loan usually has a lower fixed rate and a clear payoff date, which suits a large one-off cost or consolidating card debt. A 0% balance transfer card can be cheaper if you can clear the balance within the promotion.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Reviewed by ToolsUnlocked Team · Last updated