About the Personal Loan Calculator
Personal loans are fixed-rate installment loans, often with an upfront origination fee that's deducted from the amount you receive. This calculator shows the monthly payment, total interest, and the effective APR once that fee is included — the number to compare across offers.
How it’s calculated
The payment uses the standard amortizing-loan formula on the full amount at the note rate. The APR is the rate that equates your payments to the net amount you actually receive (loan minus origination fee).
Example calculation
A $15,000 personal loan at 11.5% over 3 years has a payment of about $495. A 3% origination fee ($450) pushes the effective APR above the note rate.
Frequently asked questions
Why is APR higher than the interest rate?
Because origination fees are deducted from what you receive but you still repay the full amount at the note rate. APR captures that, so it's the fairest comparison.
Are personal loans fixed-rate?
Most are — a fixed rate and fixed monthly payment over a set term. This calculator assumes a fixed-rate installment loan.
This calculator provides estimates for educational purposes and should not be considered financial, tax, or legal advice. Your actual figures may vary with lender terms, fees, and market conditions.