Personal Loan Repayment Calculator
Calculate your monthly payments, total interest, and the impact of origination fees.
How to Use the Personal Loan Calculator
Planning your finances requires precision. Our personal loan calculator helps you visualize the long-term cost of borrowing by accounting for the three most critical factors: the principal amount, the interest rate, and the origination fee. Unlike simple calculators, this tool factors in the fees often deducted by lenders upfront, giving you a clearer picture of your Annual Percentage Rate (APR).
Understanding the Impact of Origination Fees
Many online lenders charge an origination fee ranging from 1% to 8%. This fee is typically deducted from your loan proceeds. For example, if you borrow $10,000 with a 5% fee, you only receive $9,500, but you still owe interest on the full $10,000. Our calculator adds this fee to the principal to show you the true cost of the loan.
Example Calculation Breakdown
Suppose you are looking for a debt consolidation loan with the following terms:
| Factor | Value |
|---|---|
| Loan Amount | $15,000 |
| Interest Rate | 12% |
| Loan Term | 48 Months |
| Origination Fee | 4% ($600) |
In this scenario, your monthly payment would be approximately $395.00. Over the life of the 4-year loan, you would pay a total of $3,960.00 in interest, resulting in a total repayment of $18,960.00.
Frequently Asked Questions
What is a good interest rate for a personal loan?
Rates vary significantly based on your credit score. "Excellent" credit scores (720+) often secure rates between 6% and 10%, while "Fair" scores may see rates upwards of 25%.
Does a longer term save money?
No. While a longer term (e.g., 60 months vs. 36 months) lowers your monthly payment, you will pay significantly more in total interest over the life of the loan.