Personal Loan Calculator 2026
Calculate monthly payments, true APR, and total interest for personal loans.
Loan Details
Typical rates for good: 10.9% – 15.9% APR
Monthly Payment
$487.54
Total Interest: $2,551 · APR: 11.90%
Total Cost
$2,851
Origination Fee
$300
You Receive
$14,700
Term Comparison
| Term | Monthly | Total Interest | Total Cost |
|---|---|---|---|
| 24 mo | $695.64 | $1,695 | $1,995 |
| 36 mo | $487.54 | $2,551 | $2,851 |
| 48 mo | $384.05 | $3,434 | $3,734 |
| 60 mo | $322.41 | $4,345 | $4,645 |
Disclaimer
- Rates depend on credit score, income, and lender.
- Origination fees are deducted from your loan disbursement.
- Compare offers from multiple lenders before committing.
How Personal Loans Work
A personal loan gives you a lump sum that you repay in fixed monthly installments over a set term — usually 2 to 7 years. Most personal loans are unsecured, meaning no collateral is required. This makes them accessible but typically more expensive than secured loans like mortgages or auto loans. Interest rates range from about 7% for excellent credit to 36% for fair credit.
Interest Rate vs APR — Why the Difference Matters
Many lenders charge an origination fee of 1% to 8% that's deducted from your loan proceeds. A $10,000 loan with a 5% fee means you receive only $9,500 — but you repay $10,000 plus interest. The APR (Annual Percentage Rate) accounts for this fee, giving you the true cost of borrowing. Always compare APRs, not just interest rates.
Typical Personal Loan Rates by Credit Score (2026)
| Credit Score | Estimated APR Range |
|---|---|
| Excellent (750+) | 7.0% – 12.0% |
| Good (700–749) | 11.0% – 17.0% |
| Fair (650–699) | 17.0% – 24.0% |
| Poor (600–649) | 24.0% – 30.0% |
| Bad (below 600) | 30.0% – 36.0% |
When a Personal Loan Makes Sense
- Debt consolidation — Replace multiple high-interest credit card balances with one lower-rate payment
- Home improvement — Fund renovations without tapping home equity
- Emergency expenses — Cover unexpected costs when savings fall short
- Large purchases — Avoid using credit cards for big-ticket items
Shorter Term vs Longer Term
A shorter loan term means higher monthly payments but significantly less total interest. A $15,000 loan at 10% costs $4,040 in interest over 5 years but just $1,580 over 3 years. Choose the shortest term you can comfortably afford — your wallet will thank you.
Personal Loan vs Credit Card vs HELOC
Personal loans offer fixed rates and predictable payments, unlike credit cards with variable rates. HELOCs may offer lower rates but require home equity and put your house at risk. For unsecured borrowing with a defined payoff timeline, personal loans are often the best middle ground.
Frequently Asked Questions
Does applying for a personal loan hurt my credit score?
Pre-qualification uses a soft pull that doesn't affect your score. The formal application triggers a hard inquiry, which may lower your score by 5-10 points temporarily. However, if you consolidate credit card debt with a personal loan, the improved credit utilization ratio often raises your score overall.
Can I pay off a personal loan early without penalty?
Most online lenders charge no prepayment penalty. Some traditional banks and credit unions do. Check the loan agreement for prepayment terms before signing. Paying off early saves interest but only makes financial sense if there's no penalty eating into your savings.