A personal loan calculator is a valuable tool that helps you estimate your monthly payments for a personal loan. This allows you to budget effectively and understand the financial commitment before you borrow money. Personal loans are typically unsecured, meaning they don't require collateral, and can be used for various purposes such as debt consolidation, home improvements, medical expenses, or major purchases.
How the Calculation Works
The personal loan calculator uses a standard formula to determine the monthly payment amount. The formula is based on the loan amount, the annual interest rate, and the loan term.
The formula for calculating the monthly payment (M) is:
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1]
Where:
M = Your total monthly loan payment
P = The principal loan amount (the amount you borrow)
i = Your monthly interest rate. This is calculated by dividing the annual interest rate by 12 (e.g., if your annual rate is 12%, your monthly rate is 12% / 12 = 1% or 0.01).
n = The total number of payments over the loan's lifetime. This is calculated by multiplying the number of years in the loan term by 12 (e.g., a 5-year loan will have 5 * 12 = 60 payments).
Our calculator takes your inputs for the loan amount, annual interest rate, and loan term (in years) and applies this formula to give you an estimated monthly payment.
Key Considerations When Taking Out a Personal Loan
Interest Rate (APR): This is one of the most significant factors affecting your monthly payment and the total cost of the loan. Lower interest rates mean lower payments and less interest paid over time.
Loan Term: A longer loan term will result in lower monthly payments, but you'll pay more interest overall. A shorter term means higher monthly payments but less total interest paid.
Fees: Some personal loans may come with origination fees or late payment fees. Ensure you understand all associated costs.
Credit Score: Your creditworthiness plays a crucial role in determining your eligibility and the interest rate you'll be offered.
Use this calculator to explore different loan scenarios and find a repayment plan that best fits your financial situation.
function calculateLoan() {
var loanAmountInput = document.getElementById("loanAmount");
var annualInterestRateInput = document.getElementById("annualInterestRate");
var loanTermInput = document.getElementById("loanTerm");
var principal = parseFloat(loanAmountInput.value);
var annualRate = parseFloat(annualInterestRateInput.value);
var years = parseFloat(loanTermInput.value);
var resultDiv = document.getElementById("result");
if (isNaN(principal) || isNaN(annualRate) || isNaN(years) || principal <= 0 || annualRate < 0 || years 0) {
monthlyPayment = principal * (monthlyRate * Math.pow(1 + monthlyRate, numberOfPayments)) / (Math.pow(1 + monthlyRate, numberOfPayments) – 1);
} else {
monthlyPayment = principal / numberOfPayments; // Simple division if interest rate is 0
}
var totalInterest = (monthlyPayment * numberOfPayments) – principal;
var totalRepayment = principal + totalInterest;
if (isNaN(monthlyPayment)) {
resultDiv.innerHTML = "Calculation error. Please check your inputs.";
} else {
resultDiv.innerHTML = "$" + monthlyPayment.toFixed(2) + "Estimated Monthly Payment";
resultDiv.innerHTML += "Total Interest Paid: $" + totalInterest.toFixed(2) + "";
resultDiv.innerHTML += "Total Repayment: $" + totalRepayment.toFixed(2) + "";
}
}
// Synchronize range slider and number input for annual interest rate
var annualInterestRateSlider = document.querySelector('#annualInterestRate[type="range"]');
var annualInterestRateNumber = document.querySelector('#annualInterestRate[type="number"]');
annualInterestRateSlider.addEventListener('input', function() {
annualInterestRateNumber.value = this.value;
document.getElementById('annualInterestRateValue').innerText = this.value + '%';
calculateLoan(); // Recalculate on slider change
});
annualInterestRateNumber.addEventListener('input', function() {
if (parseFloat(this.value) >= 3 && parseFloat(this.value) = 1 && parseFloat(this.value) <= 10) {
loanTermSlider.value = this.value;
document.getElementById('loanTermValue').innerText = this.value + ' years';
calculateLoan(); // Recalculate on number input change
} else {
// Optionally provide feedback
}
});
// Initial calculation on page load
window.onload = function() {
calculateLoan();
};