Plan your finances by calculating your monthly installments instantly.
Years
Months
Monthly Payment$0.00
Total Interest$0.00
Total Payback$0.00
Understanding Your Personal Loan Payments
A personal loan is a fixed-sum debt that you repay over a set period with interest. Using a calculator helps you understand how different interest rates and loan terms impact your monthly budget.
How the Calculation Works
This calculator uses the standard amortization formula to determine your fixed monthly payment:
Monthly Payment = [P x I x (1 + I)^N] / [(1 + I)^N – 1]
P (Principal): The total amount of money you are borrowing.
I (Interest): The periodic interest rate (Annual Rate divided by 12).
N (Number of Payments): The total number of months in your loan term.
Example Scenario
If you borrow $10,000 at a 10% annual interest rate for a 3-year term (36 months):
Monthly Payment: $322.67
Total Interest Paid: $1,616.12
Total Cost of Loan: $11,616.12
Key Factors to Consider
When shopping for a personal loan, pay attention to the APR (Annual Percentage Rate). While the interest rate covers the cost of borrowing, the APR includes additional fees like origination fees, giving you a truer sense of the total cost. Shorter loan terms usually mean higher monthly payments but lower total interest paid over the life of the loan.
function calculatePersonalLoan() {
var loanAmount = parseFloat(document.getElementById('loanAmount').value);
var annualRate = parseFloat(document.getElementById('interestRate').value);
var loanTerm = parseFloat(document.getElementById('loanTerm').value);
var termUnit = document.getElementById('termUnit').value;
// Validation
if (isNaN(loanAmount) || loanAmount <= 0) {
alert("Please enter a valid loan amount.");
return;
}
if (isNaN(annualRate) || annualRate < 0) {
alert("Please enter a valid interest rate.");
return;
}
if (isNaN(loanTerm) || loanTerm <= 0) {
alert("Please enter a valid loan term.");
return;
}
// Convert term to months
var totalMonths = termUnit === 'years' ? loanTerm * 12 : loanTerm;
// Monthly interest rate
var monthlyRate = (annualRate / 100) / 12;
var monthlyPayment = 0;
// Logic for 0% interest edge case
if (monthlyRate === 0) {
monthlyPayment = loanAmount / totalMonths;
} else {
// Amortization Formula: [P * I * (1 + I)^N] / [(1 + I)^N – 1]
var x = Math.pow(1 + monthlyRate, totalMonths);
monthlyPayment = (loanAmount * x * monthlyRate) / (x – 1);
}
var totalPayment = monthlyPayment * totalMonths;
var totalInterest = totalPayment – loanAmount;
// Display Results
document.getElementById('resultArea').style.display = 'block';
document.getElementById('monthlyDisplay').innerText = '$' + monthlyPayment.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('interestDisplay').innerText = '$' + totalInterest.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('totalDisplay').innerText = '$' + totalPayment.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
}