What it tells you
Enter how much you want to borrow, the APR and the number of months. You get the monthly payment, the total you will repay and the interest you will pay, which is the real price of the loan.
How the payment is worked out
Fixed-rate loans use the amortisation formula: payment = amount x r / (1 - (1 + r)^-n). Here r is the APR divided by 12 and n is the number of monthly payments. Total interest is payments made minus the amount borrowed.
A worked example
Borrowing $15,000 at 10.5% APR over 48 months gives a payment of about $384 a month. You would repay roughly $18,434 in total, so the loan costs about $3,434 in interest. Stretch the same loan to 60 months and the payment drops, but the interest climbs.
Using the result well
Compare the payment with your monthly budget, then compare total interest across several lenders. A slightly higher payment over a shorter term usually saves the most money.
What is not included
Origination fees, late fees and insurance add-ons change the real cost. Use the APR with fees calculator to include them.
Frequently asked questions
Is this a loan offer?
No. It is an educational estimate. Lenders set their own rates and terms.
What is a good personal loan term?
Choose the shortest term whose payment fits comfortably in your budget.
Does the loan have a fixed rate?
The calculator assumes a fixed rate. Variable rates can change your payment.