Personal Loan Calculator

The calculator assumes a fixed-rate loan repaid in equal monthly payments, with interest charged each month on the balance still owed. It shows the monthly payment, the total interest and the total you repay. The term accepts half-year steps from 6 months to 10 years, so an 18-month loan is 1.5.

With the defaults ($15,000 at 11% for 3 years) the payment is $491.08 and you repay $17,678.91, so $2,678.91 is interest. The result card calls the payment "Monthly EMI", the term used in some countries for the same level monthly instalment.

A 0% promotional loan is simply divided by the number of months: $10,000 over 2 years shows $416.67 a month.

Some personal loans deduct an origination fee from the money you receive, while the payment is still based on the full amount borrowed. If you need $12,000 in hand and the lender deducts 6%, you have to borrow $12,000 ÷ 0.94, about $12,766. Say you round it to $12,770 at a 13% interest rate for 4 years:

• Monthly payment: $342.59
• Total repaid: $16,444.18
• Money you actually received: $12,003.80

The loan costs about $4,440 for roughly $12,000 of spending money, which works out to an APR of about 16.39%, well above the 13% interest rate.

That gives you two ways to use the calculator. Enter the amount borrowed and the interest rate to get the lender's payment. Or, if all you have is an APR that includes the fee, enter the amount you will receive and the APR: $12,003.80 at 16.39% for 4 years gives the same $342.59. Mixing the two, with the APR on the full amount borrowed, overstates the payment.

Lenders often quote different rates for different terms. Compare two offers on $15,000:

The 5-year loan frees up $146.82 a month but costs $2,722.21 more in interest. If the shorter payment fits your budget with room to spare, it is the cheaper loan. If you pick the longer term for flexibility, check that the loan has no prepayment penalty. Then any month you pay extra, the loan payoff calculator will show how much sooner you finish.

A consolidation loan only helps if it lowers your total cost, not just your monthly payment. Before you apply:

1. List each debt you would pay off, with its balance, rate and current payment.
2. Run each one through the loan payoff calculator to see its remaining months and interest at the payment you make now.
3. Run the new loan here, using the amount you need to borrow after any fee.
4. Compare total interest plus fees, and the date you would be debt-free, not only the monthly figure.

A lower payment over a longer term can cost more in the end. A consolidation also only works if the paid-off cards don't fill up again.