Personal Loan Calculator
Calculate monthly payments and total costs for personal loans with fixed interest rates
How Personal Loans Work
Personal loans are unsecured loans that can be used for various purposes like debt consolidation, home improvements, or major purchases.
Unlike mortgages or auto loans, personal loans don't require collateral, which typically means higher interest rates.
Most personal loans have fixed interest rates and fixed monthly payments over the loan term.
Calculation Formula
Monthly Payment = P × [r(1+r)^n] / [(1+r)^n - 1]
Where:
- P = Principal loan amount
- r = Monthly interest rate (annual rate ÷ 12)
- n = Total number of payments (years × 12)
Personal Loan Tips
- Shop around with multiple lenders to find the best rates
- Check your credit score before applying
- Consider shorter terms to save on total interest
- Avoid borrowing more than you need
- Make sure you can afford the monthly payments