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Personal Loan Calculator
See exactly what a personal loan will cost. Enter the amount, rate and term to get your monthly payment, then add an extra payment to watch the payoff date move closer.
Written by TopicDrill Editorial Team·Updated June 2026
Balance over the loan
Balance Interest paid
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How the personal loan calculator works
A personal loan is repaid in equal monthly installments over a fixed term. The tool uses the amortization formula to find the payment that clears the balance exactly on schedule, then steps through every month to track how the balance, principal and interest move. The shaded area in the chart is your falling balance; the dashed line is the interest you have paid so far.
Add an amount to the extra-per-month field and the schedule recalculates. That extra cash lands entirely on the principal, so the balance drops faster and the loan clears ahead of the original term.
A worked example
Borrow $20,000 at 11.5% for 5 years and your payment is about $440 a month. Over the full term you repay roughly $26,400, of which about $6,400 is interest. Adding just $50 a month trims several months off the term and shaves a few hundred dollars from the interest bill.
Things to keep in mind
The rate you are quoted depends heavily on your credit profile, so shop around before committing. Check whether the lender charges an origination fee or a prepayment penalty, since both change the real cost. For a plain-language overview of borrowing, the Consumer Financial Protection Bureau is a neutral source. If you are weighing a different debt, our mortgage calculator uses the same amortization math for home loans.
Frequently asked questions
How is the monthly payment on a personal loan calculated?
It comes from the amortization formula, which spreads the loan into equal payments. Each payment is the principal times the monthly rate, divided by one minus one plus the monthly rate raised to the negative number of payments. Early payments are mostly interest and later ones are mostly principal.
Does paying extra each month really save money?
Yes. Any extra amount goes straight to principal, so the balance falls faster and less interest accrues on it. Even a small extra payment each month can cut months off the term and save a meaningful share of total interest.
What is the difference between interest rate and APR?
The interest rate is the cost of borrowing the principal. APR also folds in fees such as an origination charge, so it reflects the true yearly cost. This tool uses the interest rate, so add fees separately if you want the full picture.
Why is so much of my early payment interest?
Interest is charged on the outstanding balance, which is highest at the start. As the balance shrinks, the interest portion of each payment falls and more of your fixed payment chips away at the principal.
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