Use this calculator to find out how much you might owe each month on a personal loan.
How to use this personal loan monthly payment calculator
- Enter the amount you want to borrow under Loan amount.
- Write the loan term in years (not months) under Loan terms.
- Enter the loan’s interest rate if there are no fees under Interest rate. Otherwise, write the annual percentage rate (APR), which includes interest and fees.
- Hit Calculate.
- Review your results.
In addition to the monthly payment, our calculator also tells you how much you’ll pay back on the principal and the total interest you’ll pay. This total interest includes fees if you use your loan’s APR instead of its interest rate.
As an example, here’s how much you could expect to pay with three leading online lenders. Keep in mind the rate you’re ultimately approved for could be higher than the lender’s advertised starting APR.
|Max loan amount||Starting APR||Estimated monthly payment on a $20,000 loan with a 3-year term||Estimated monthly payment on a $35,000 loan with a 5-year term|
(Calculations are based on the lender’s starting APR, which requires you to have excellent credit.)
Monthly payment calculator terms you should know
- Loan amount. The amount of money that you borrow.
- Loan term. The amount of time you have to pay back your loan.
- Interest rate. A percentage of your loan balance that your lender charges over a period of time. Most lenders charge an annual interest rate, which is the percentage of your loan balance that you’d pay over a year.
- Principal. The amount that you currently owe from the money you borrow. Your loan principal is the same as your loan amount when you first take out your loan, and it decreases every time you make a payment.
- Monthly payment. The amount of money you’re required to pay on your loan each month. Part of your monthly payment goes toward interest and the rest goes toward your principle.
Is a lower monthly payment always better?
Not necessarily. A lower monthly payment might have less of an impact on your day-to-day expenses. But it can be more expensive in the long run.
Why’s that? To get a lower monthly payment, you need a longer loan term. And the longer you take to pay back a loan, the more time there is for interest to add up. This can get particularly pricey if you have a high interest rate.
If you want to lower your total loan cost, look at your budget and figure out how much you can comfortably afford to pay each month. Look for a loan that offers a monthly repayment around that amount.
Knowing how much you could expect to pay each month equips you with a crucial piece of information for comparing personal loans. Two lenders may offer the same amounts but with very different interest rates and terms, causing one to be more expensive than the other.
Our personal loan monthly payment calculator also helps you understand what loan amount you can afford to borrow.
Interested in calculating something different? Check out our full list of personal loan calculators.