Personal Loan Calculator

Instalment loans all work the same way whatever they are called: a fixed payment, a fixed term, and interest charged on the falling balance. Personal, auto and business loans differ in how they are underwritten, not in how the arithmetic works.

This calculator produces the payment, the total interest, and the APR once fees are folded in - which is the figure that makes two offers with different fee structures comparable.

Result

Monthly payment

$525

Total interest

$6,503

APR including fees: 10.37%
Scheduled payment: $525
Total paid: $32,003
Interest plus fees: $7,003
Payments to clear: 60 months
Interest share of total paid: 20.64%

The APR shown treats the fee as paid out of the loan proceeds, which is the usual disclosure basis.

Add an extra payment amount to see how much interest a larger payment removes.

Yearly payoff summary

Year	Principal paid	Interest paid	Remaining balance
1	$4,101	$2,200	$20,899
2	$4,508	$1,792	$16,391
3	$4,956	$1,345	$11,435
4	$5,447	$853	$5,988
5	$5,988	$313	$0

How to use the personal loan calculator

Enter the amount you plan to borrow.
Enter the interest rate and the term in years.
Add any origination or arrangement fee.
Add an extra monthly payment to see how much interest it removes.

What people use this for

Comparing loan offers on total cost rather than payment.
Checking what an advertised rate means in monthly terms.
Seeing how much a fee adds to the effective rate.
Testing the effect of overpaying each month.

Worked examples

Every figure below is produced by running this calculator against the example inputs, so the numbers always match the tool.

A five-year personal loan

$25,000 at 9.5% over 5 years with a $500 fee.

Monthly payment: $525
Total interest: $6,503
APR including fees: 10.37%

The same loan with $100 extra a month

Identical terms with an additional $100 applied to principal.

Total interest: $5,180
Interest plus fees: $5,680
Payments to clear: 49 months

Fees are a rate in disguise

A $500 origination fee on a $25,000 loan is 2% of the amount borrowed, and it is charged whether the loan runs five years or is repaid in one. Folded into an APR across the full term it looks small; repaid early it is expensive.

That is why APR is the right comparison between two offers of the same term, and why a fee should be compared in cash terms if you might repay early.

Shorter terms cost far less

Extending a loan from three years to five reduces the payment noticeably and increases total interest substantially, because the balance stays high for longer.

The honest way to choose is to look at both figures. If the shorter term is affordable, it is almost always the better deal; if it is not, the longer term is the correct choice and the extra interest is the price of that.

Methodology and assumptions

What this calculator does, and what it deliberately does not do.

The payment uses the standard amortising formula. Total interest is payment × months minus the amount borrowed.
APR is solved so that the payment stream matches the loan amount net of fees.
Extra payments are applied to principal after interest, which is how most lenders treat them.
Results are estimates. Real quotes depend on credit, income, property, loan programme and lender pricing at the time of application.
Nothing you type is transmitted or stored - the calculation runs entirely inside your browser.

This calculator is provided for informational and educational purposes only. Results are estimates and may not reflect actual rates, fees, taxes, or market conditions.

This website is not a lender, a mortgage broker or a financial adviser. It does not originate loans, does not accept applications and does not forward your details to anyone.

Actual loan terms depend on credit history, income, the property, the loan programme and lender pricing at the time of application. Only a lender can tell you what you qualify for.

Frequently asked questions

Does this work for car loans?

Yes. Enter the amount financed after any deposit or trade-in, and treat dealer fees as fees.

What is an origination fee?

A charge for setting up the loan, frequently deducted from the amount advanced rather than billed separately. Either way it raises the effective cost.

Is there a penalty for repaying early?

Many personal loans allow it freely; some carry prepayment charges. Check the agreement before assuming.

Why is the APR higher than the rate?

Because it includes the fee. With no fees the two are effectively identical.

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